Jain Irrigation denies debt obligation default, to reduce debt by 2,000 cr

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

The Jalgoan-based company has a debt equity ratio of 1:1.1 and networth of Rs 4,561 crore including Compulsory Convertible Debenture (CCD), 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.

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

"Company is confident of executing on these plans," Jain Irrigation said adding that all operations of the company are ongoing.

As on April 1st, the company had more than Rs 5,000 crore worth of orders in hand. It has total 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 revenues at about Rs 8,600 crore during the 2018-19 fiscal.

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

"This was achieved 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 election," it added.

The company said it has built high quality businesses with significant future potential which are very relevant to society and marketplace.

"We have pioneered products and solutions which are addressing urgent issues of water security, food security, climate change, farmer prosperity and agricultural productivity," Jain Irrigation said.

Each of the company's business in India and overseas has created enormous intrinsic value. The company's management is committed to continue to work diligently to significantly enhance stakeholder value while fulfilling it's mission

Jain Irrigation is into manufacturing of micro-irrigation systems, PVC and HDPE pipes, plastic sheets, agro-processed products, renewable energy solutions, tissue culture plants, financial services and other agricultural inputs.

The shares of the company was trading down by 0.26 per cent at Rs 37.75 a piece on the BSE at 1212 hours.