Jain Irrigation Systems share price extended losses for the fifth straight day amid a downgrade for its long-term debt rating by India Ratings. It fell 17.26% to fresh 52-week low of 16.30 on BSE. Jain Irrigation Systems stock opened at 18.20, a loss of 7.61% compared to the previous close of 19.70 on BSE.
Jain Irrigation Systems stock has been losing for the last five days and fallen 53.70% during the period.
Jain Irrigation Systems stock has lost 80.83% during the last one year and fallen 73.31% since the beginning of this year.
Jain Irrigation Systems has around Rs 4,900-crore debt on its books.
Jain Irrigation Systems lowered its long-term issuer rating to 'IND BBB' from 'IND A-' while placing it on 'Rating Watch Negative' (RWN).
On June 13, the firm said it has not defaulted on any of its debt obligations. For the year ended March 2019, company made net profit of Rs 239 crore on revenue of approximately Rs 8,600 crore.
The company has decided to reduce debt by Rs 2,000 crore through corporate action as intimated earlier post board meeting on May 30 and is confident of executing on these plans, it said.
The company's adjusted EBIDTA was approximatley Rs 1,250 crore after adjusting for one-time costs and forex/ translation costs.
The company has achieved this despite slowdown in rural economy, inadequate monsoon, farmer distress and food raw material price deflation and a year with disruption caused by major state elections and general elections.
It has a Debt to Equity ratio of 1:1.1 and networth of Rs 4561 crores (including CCD). Jain Irrigation Systems is an agri-business company, the firm said.
The company is engaged in manufacture of plastic products, and manufacture of fruit or vegetable juices, their concentrates squashes and powder. Its segments include hi-tech agri input products, industrial products and non-conventional energy.
Edited by Aseem Thapliyal
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