Care Downgrades Jain Irrigation Systems Rating Due To Delays In Debt Servicing

In Clean Facts, News, Sustainability

Jain Irrigation Systems said on Saturday that Care Ratings has downgraded its rating on bank facilities due to on-going delays in debt servicing.

The billion-dollar enterprise has long-term loans of Rs 783 crore, long-term bank facilities for working capital of Rs 1,650 crore and short-term bank facilities of Rs 2,220 crore — with total facilities aggregating to Rs 4,653 crore, according to regulatory filings at stock exchanges.

Care downgraded its long-term loans and long-term bank facilities for working capital from B plus with stable outlook to single D.

At the same time, it downgraded the company’s short-term bank facilities from A4 to single D.

Care has done this seeing the delays in debt servicing, on account of slowdown in collection of receivables from micro-irrigation systems segment, leading to cash flow issues in the company. Further, the company has signed an inter-creditor agreement due to ongoing stress in the account.

Care also noted that Jain Irrigation Systems is in discussion with banks for an increase in working capital limits to address immediate liquidity concerns which are yet to be sanctioned.

Incidentally the company has reported a profit after tax of Rs 254 crore on operating income of Rs 8,826 crore during 2018-19. It operates in diverse segments of the agri-business and also offers products in renewable energy segment.

The company has 33 manufacturing bases with 11 manufacturing facilities and 5 demo and research development farms in India besides 17 plants located across four continents.

This is an ANI story; edited by Clean-Future Team

Join Our Newsletter!

Love Clean Future? We love to tell you about our new stuff. Subscribe to newsletter!

Mobile Sliding Menu