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Jain Irrigation lowers loss in Q3 to Rs 123 crore

Jain Irrigation lowers loss in Q3 to Rs 123 crore

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Mumbai (Maharashtra) [India], February 13 (ANI): Cash-strapped Jain Irrigation Systems said on Saturday its consolidated loss during the October to December quarter totalled Rs 123 crore from Rs 284 crore in Q3 FY20.
On standalone basis, the loss was Rs 75 crore in Q3 FY21 as compared to Rs 183 crore in the same quarter of previous fiscal.
However, consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) moved into the black at Rs 122 crore in Q3 FY21 from negative Rs 82 crore in Q3 FY20.
At the same time, consolidated revenue rose to Rs 1,428 crore from Rs 1,300 crore in the same period.
The company's debt pile, liquidity issues and delay in servicing debt have prompted rating firms to downgrade it.
S&P downgraded Jain Irrigation to junk grade while Care Ratings also downgraded it to D last year due to a delay in servicing debt.
Reports say lenders led by State Bank of India (SBI) have approved a Rs 4,000 crore recast plan for the company under which the promoter will receive funding of Rs 130 crore while the interest cost is expected to halve to Rs 200 crore.
Under the recast plan, of the total debt, Rs 2,800 crore has been classified as sustainable. The company will have to bear an interest rate of 9 per cent on the sustainable debt while no interest will be charged on the Rs 1,200 crore of what is classified as unsustainable loans.
The unsustainable debt will be converted into debentures payable after eight years at 0.01 per cent interest.
Lenders will also convert some part of the debt to equity and pick up a stake of 15 per cent. The promoters are also expected to infuse some capital in the firm and pick up equity against that.
"We continue to engage intensively with the lenders on the debt resolution," said Vice Chairman and Managing Director Anil Jain.
"The debt resolution has progressed well and we are pleased to state that we are close to implementation in coming weeks," he said in a statement on Saturday.
The company has 33 manufacturing bases with 11 manufacturing facilities and five demo and research development farms in India besides 17 plants located across four continents. (ANI)

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