Shares in Jain Irrigation slumped on the BSE after the company reported a fall in quarterly profit.
At 10.25 a.m., the stock traded with over 6 per cent losses at Rs 81.20 on the BSE. It was among the top traded stock on the BSE 500 index.
June quarter sales were down 9 per cent at Rs 865 crore against Rs 951 crore last year, while adjusted net profit fell 72 per cent at Rs 26 crore over Rs 93 crore last year.
The earnings miss was due to the revenue decline in the key MIS (micro irrigation systems) business, which suffered on account of weak farmer sentiments. MIS gross receivables have been flattish sequentially.
"The overall receivables were down in the first quarter," Anil Jain, managing director of Jain Irrigation Systems told NDTV Profit today.
Ebitda margins, a key measure of profitability, grew at 21 per cent in the June quarter against expectations of over 23 per cent growth.
The company said it expects to cut its debt to equity ratio to 1 from the current 1.5 per cent.
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