You are here: Home - Company - - News @ Jains - Jain Irrigation reports excellent Q1 /FY10 Standalone Results

News @ Jains - Jain Irrigation reports excellent Q1 /FY10 Standalone Results

Highlights :

• Revenue at Rs 567 Crores, up 21%


• EBITDA surges by 35% at Rs 127 Crores


• Quarterly PBT at Rs 84 Crores up 181%

Mumbai, July 30, 2009 : Jain Irrigation, the largest micro irrigation Company in the country and the second largest player globally, has announced very impressive standalone results for the quarter ended 30th June, 2009.

The net sales for the quarter was at Rs. 567 crores up 21% (against corresponding quarter net sales in FY09 at Rs. 470 Crs). Despite the global subdued environment, domestic sales across the businesses have achieved very encouraging growth of about 30%. MIS business grew by 36% in domestic markets, this growth would have been higher but for continued presence of code of conduct till formation of new Government at centre in mid May, in this quarter. Fruit processing business also grew substantially by 80% and PVC Pipe business grew by 54%. Domestic market growth demonstrates revival of general economy in the country. Sluggish global markets has resulted into 17% lower exports of the company. Agro Processing Business has witnessed negative export growth of 37%. However current robust order book would ensure 20-25% growth in Agro processing business in the current financial year.

With increasing share of MIS business (44% of Revenue Mix) the corporate EBIDTA margin has jumped by 240 bps for the quarter at 22.5%. Corporate EBIDTA for the quarter was at Rs. 127 Crores (Rs. 94 Crores) demonstrating a healthy growth of 35%.

Absolute finance cost was high at Rs. 48 Crores, moving in line with the growing working capital intensive micro irrigation business and other business lines. During this quarter Company has partly recovered the notional loss accounted for in the last financial year (FY09) by booking Rs. 20 Crores notional Forex gain on account of mark to market of various foreign currency loans.

Company has achieved Profit Before Tax of Rs. 84 Crores in this quarter, up 181%. In this quarter the company has also made tax provisions of Rs. 29 Crores. Net profit grew by 88% at Rs. 56 Crores.

Mr Anil Jain, Managing Director of the Company said, "This has been another very good Quarter for our overall performance. The direction for domestic business continues to be strong especially after the Union Government Budget for the current year which has focused on rural economy. We expect Irrigation, PVC Pipe and Fruit Processing business to maintain significant levels of growth even in the coming Quarters. Recently, we have also received good amount of export orders for agro processing business which will help us to augment performance in export markets. We have access to low cost funding and enough liquidity on hand to sustain planned growth in the current and next fiscal year. We continue to remain cautiously optimistic about the overall result due to significant volatility in the external world on various fronts."

Mr. Anil Jain, Managing Director said "Our Company has given very good operating performance during this quarter despite daunting and volatile  external environment in relation to polymer prices, currency rates, availability of fruits etc. We continue to have strong demand outlook for micro irrigation and agro processing segment. We are gearing our production capacities to meet growth in demand".

The results were approved at Board Meeting on 30th July, 2009 at Mumbai.

About Jain Irrigation
Jain Irrigation is a diversified Company with more than 5,000 employees and a product portfolio encompassing Irrigation Product, 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.

Back to News Headlines

Click here for more details