Jain Irrigation has reported a loss of Rs 16 crore in the June quarter against a net profit of Rs 82 crore recorded in the same period last year.
Sales were down nine per cent at Rs 865 crore (Rs 951 crore) due to planned reduction in micro irrigation business as part of effort to revamp its business model. The company also registered a forex loss of Rs 12 crore. The board has recommended a dividend of Re 1.
The company intends to raise Rs 1,150 crore ($210 million) by a mix of equity, convertible bonds and external commercial borrowings.
Anil Jain, Managing Director, said the company has registered a loss for the first time in nine years as the rupee gained by almost Rs 5 between March and June. The change in micro irrigation business strategy will result in a reduction in net subsidy receivable from State governments and create a new business model.
The company’s shares were down nine per cent at Rs 79 on Thursday.