Sprinklers irrigate a field of produce on a farm. (Photographer: David Paul Morris/Bloomberg)

Company Has Not Defaulted On Debt Obligations, Says Jain Irrigation

Asserting that the company has not defaulted on any of its debt obligations, Jain Irrigation Systems Ltd. said it is confident of executing its plan to bring down its debt by Rs 2,000 crore through corporate action.

The Jalgaon-based company has a debt equity ratio of 1:1.1 and net worth of Rs 4,561 crore including Compulsory Convertible Debenture, it said in a regulatory filing.

“To address the unsubstantiated rumours in the market and queries from various investor groups, we wish to state: the company has not defaulted on any of its debt obligations,” Jain Irrigation said.

After the board meeting on May 30, the company had intimated its decision to reduce the debt by Rs 2,000 crore through corporate action.

“The company is confident of executing these plans,” Jain Irrigation said, adding that all operations of the company are ongoing.

As on April 1, the company had more than Rs 5,000 crore worth of orders in hand. It has a total of 33 manufacturing plants worldwide and 12,000 associates, it added.

Stating that the company is “growth oriented, profit making and dividend paying entity”, Jain Irrigation said its net profit stood at Rs 239 crore and revenue at about Rs 8,600 crore during the 2018-19 fiscal.

The company’s adjusted Ebitda was around Rs 1,250 crore after adjusting for one-time costs and forex/translation costs, it said.

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