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Earnings

Jain Irrigation confident of better FY21 in terms of overall growth, revenues

Updated : November 15, 2019 07:20 PM IST

Jain Irrigation Systems on Friday said it is confident of better FY21 in terms of overall growth and revenues after the company reported a loss of Rs 133.6 crore in the September quarter.

In an interview to CNBC-TV18, Anil Jain, vice chairman and managing director, said that revenues were down mainly because of liquidity crisis and also because the wet season continued through September and in October.

In an interview to CNBC-TV18, Anil Jain, vice chairman and managing director, said that extended wet season in September, October and liquidity crisis led to the decrease in revenues, "By Q4, the situation would reverse and the company would start seeing growth in revenues as more rains are happening around the country."

"The debt scenario has been caused by short-term issues related to working capital, especially in India. That would get addressed in our discussion with banks," Jain said, "We are working with the banks to create a resolution plan on the short-term debt issue and that should be likely in place in next few months."

Further, the company is also focussing on recovering receivables which would help reduce debt issue they have in India, he added.

"The company has taken a lot of steps to improve profitability through cost reduction and more importantly getting the right balance in capital structure in terms of equity debt, the type of debt, and cost of debt," Jain said.
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