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News @ Jains - JAIN IRRIGATION FY08-09, NET SALES UP 29.7% & PBDIT UP 38.6%

Highlights :

Q4 FY2009 Highlights
• Domestic Sales growth 22.6% 
• Micro Irrigation (MIS) and PVC Pipes robust growth continues 
• EBIDTA margin expansion 90 bps

FY08-09 Standalone Highlights
• Domestic sales growth at 37.9%
• Micro Irrigation  growth at 54%, PVC Pipes at 50% and Food at 33%
• EBIDTA margin expansion 140bps

Mumbai May 01, 2009 :Jain Irrigation, the micro irrigation major has declared impressive standalone results for the quarter and year ended March 31, 2009.

The net sales for Q4 FY09 are reported at Rs.685 crores, growing by 15.3% over the corresponding quarter of FY 08 of Rs.594 crores. The domestic sales grew by 22.6% at Rs.548.6 crores as against Rs. 447.5 crores last year. The exports have de-grown 7.0% reflecting slow overseas markets and the absence of a one off significantly large export order for HDPE Pipes from an MNC during the last year’s corresponding quarter. During the quarter, PVC Pipes (47.8%), MIS (35.9%), and Vegetable Dehydration (16.4%) have been the three fastest growing divisions of the Company. Domestic business is reflecting robust growth despite deflation in commodity polymer prices in the last six months and less than expected sales in MIS business due to code of conduct coming into place for General Elections from late February.

The EBIDTA margin has expanded for the quarter by 90 bps (19.9%) at Rs.160.0 crores against Rs.133.5 crores, mainly due to better product mix, better fixed cost absorption and margin expansion in Food and MIS division. The notional exchange rate differences (mainly against long term FC loans repayable over the period of 8 years) of Rs.20.65 crores as against Rs.1.67 crores provided last year in corresponding quarter and higher tax outgo has resulted in the net profit of only Rs.13.25 crores as against Rs. 36.59 crores of last year.

The annual FY09 sales are reported at Rs.2,150.75 crores reflecting an increase of almost 30% over the FY08 level of Rs.1,658.17 crores. The domestic sales grew 37.9% while exports grew at just under 7.8%.

The EBIDTA at Rs.466.4 crores grew 38.6 % over the FY08 level of Rs.336.5 crores and reflects the management attention on the product mix and efficient resource utilisation. The EBIDTA margins expanded by 140 bps during the year. The net profit for the year is lower at Rs.122.94 crores over the FY08 level of Rs.145.54 Crores mainly due to notional forex loss on long term foreign currency loan of more than Rs.75 crores.

Mr Anil Jain, Managing Director of the Company said, “We have delivered consistently strong growth in sales and margins in our major business divisions for one more year, and the outlook for the next full year is positive for continued growth momentum in Micro irrigation & other product lines, especially with enhanced focus on domestic markets, despite slowdown in general economy and deflationary trends. Our liquidity position is strong and the long term funding required for next year’s growth capex has already been tied up. Expected lower interest cost due to rerating of the Company and better cash position, will help the Company to improve on overall finance cost. We are cautiously optimistic about the growth in export markets, even though food and water sectors in which we operate are defensive sectors even in uncertain and recessionary economies of the western world.”

The results were approved at a meeting of Board on 30th April, 2009 at Mumbai. 

About Jain Irrigation -
Jain Irrigation is a diversified Company with more than 5,000 employees and a product portfolio encompassing Irrigation Products, Piping Products, Plastic Sheets, Dehydrated Foods, Fruit Puree and Juice concentrates. Jain Irrigation has pioneered drip irrigation for small farmers in India and has a major market share in one of the fastest growing irrigation markets in the world and is also the second largest drip irrigation Company in the world.

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