Jain Irrigation Systems share price falls over 28% on debt rating downgrade
BusinessToday.In June 19, 2019
Jain Irrigation Systems share price fell in trade today after India Ratings downgraded its long-term debt rating for the company. Jain Irrigation Systems share price fell up to 28.64% to a fresh 52-week low of 19.55 level compared to previous close of 27.40% on BSE.
Jain Irrigation Systems share price opened at a loss of 6.02% at 25.75 level in trade today. Jain Irrigation Systems stock has been losing for the last four days and fallen 47.47% during the period.
Jain Irrigation Systems stock has lost 79.06% during the last one year and fallen 71.45% 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).
The company has decided to reduce the 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.
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'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 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