Jain Irrigation trims losses even as high cost takes toll

Our Bureau Mumbai | Updated on February 13, 2021 Published on February 13, 2021

Jain Irrigation has reported a lower net loss of ₹123 crore in the December quarter against loss of ₹284 crore logged in the same period last year, largely due to higher cost of raw material.

Revenue from operations was up at ₹1,428 crore (₹1,300 crore).

Overall expenses were down marginally at ₹1,623 crore (₹1,687 crore). Raw material and finance cost were up at ₹835 crore (₹733 crore) and ₹183 crore (₹178 crore).

On a standalone basis, net loss was down at ₹75 crore against loss of ₹183 crore registered last year while revenue was up at ₹522 crore (₹352 crore).

Anil Jain, Managing Director, Jain Irrigation, said the quarter started of with scepticism and uncertainty over Covid, but in reality the impact on business was manageable.

The company is close to implementation of debt resolution plan in coming weeks and confident of increasing the capacity utilisation besides enhancing product range, he added.

On the standalone, the company has increased the run rate and turned Ebitda positive, he said.

The overseas subsidiaries’ performance continue to remain stable with steady growth, despite challenging Covid times.

Israel is ahead in vaccination and this is lending support to the business.

In India, there has been a gradual increase in the dealer network and spreading outreach into newer districts.

“We continue to engage intensively with the lenders on the debt resolution,” said Jain.

The company has entered into agreement with lenders to restructure its debt of ₹3,649 crore. The consolidated networth of the company was ₹3,020 crore.

During the quarter, the lenders of Jain Farm Fresh Foods, a subsidiary Jain Irrigation, has invoked resolution plan in terms of Covid-19 related stress and entered into Inter Creditor Agreement with lenders.

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Published on February 13, 2021
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