Jain Irrigation Systems slumps after rating downgrade

Jain Irrigation Systems was down 9.67% to Rs 24.75 at 9:19 IST on the BSE after one of the rating agencies downgraded its long-term debt rating.

Meanwhile, the S&P BSE Sensex was up by 258.31 points, or 0.66% to 39,304.65.

On the BSE, 5.77 lakh shares were traded in the counter so far compared with average daily volumes of 23.22 lakh shares in the past two weeks. The stock had hit a high of Rs 26.50 and a low of Rs 24.75 so far during the day. It hit a 52-week high of Rs 98.30 on 19 June 2018 and a 52-week low of Rs 24.75 on 19 June 2019.

India Ratings and Research (Ind-Ra) on Tuesday downgraded Jain Irrigation Systems's (JISL) long-term issuer rating to 'IND BBB' from 'IND A-'; while placing it on Rating Watch Negative (RWN).

The downgrade reflects deterioration in the liquidity profile of JISL on account of a delay in the realisation of its receivables from its micro-irrigation systems (MIS) segment. The RWN reflects the risk of delay in the company's deleveraging plans or a further increase in its working capital requirement, resulting in further worsening of its liquidity position, the Ind-Ra statement said.

On a consolidated basis, Jain Irrigation Systems' net profit fell 44.8% to Rs 53.75 crore on 6% fall in the net sales to Rs 2583.07 crore in Q4 March 2019 over Q4 March 2018.

Jain Irrigation Systems is an agri-business company.

Powered by Capital Market - Live News