News @ Jains - Jain Irrigation declares impressive third quarter performance.

Highlights

• EBIDTA up 33%.


• PAT up 25% at Rs 71 Crores

Jain Irrigation, the largest micro irrigation Company in the country and the second largest globally, has announced impressive standalone results for the period ended 31st Dec 2010.

The net sales for the quarter were at Rs 693 Crores resulting into a growth of 10% for continued businesses (against corresponding quarter net sales in FY 10 at Rs 631 Crs). Overall MIS Business (Micro Irrigation Systems) has shown a growth of 19%, with Andhra Pradesh demonstrating continued high growth of 59%, PVC sheet business has also continued good performance by recording a growth of 15%. Piping and food business maintained similar levels as last corresponding period.

Corporate EBIDTA for the quarter was at Rs. 174 Crores (Rs 130 Crores) demonstrating a growth of 33%. During the quarter we have recognized Rs. 39.8 Crores as other operating income being VAT refunds due since October 2009 including Rs. 8.4 Crores for the current quarter in accordance with Industrial Promotion Scheme of Government of Maharashtra.

Amid the previaling tight liquidity and increasing interest costs in the country, our finance cost has gone up by 27% at Rs. 57 crores.Foriegn exchange gain in the quarter was Rs. 7 Crores (Rs. 13 Crores). Profit Before Tax (Before Exchange Rate Gain / (Loss)) was up by 40% at Rs. 96 Crores and Companys Profit After Tax (After Exchange Rate Gain / (Loss)) has grown by 25%at Rs 71 Crores (Rs. 57 Crores).

To Strengthen the Companys Balance Sheet, to reduce interest cost and fund the potential growth opportunities across businesses, the Board has approved the equity fund raising proposal to raise funds upto approx USD 150Mn, subject to shareholders approval.

The Board has also recommended to shareholders issuance of bonus Equity shares with differential voting rights (DVR equity shares) in the ratio of 1 DVR Equity Share for every 20 Ordinary Equity Shares. 10 DVR Equity Shares shall carry voting right equivalent to 1 Ordinary Equity Share.

The Board has also approved to setup a new company and intends to apply to RBI for registering as a Non Banking Financial Company. In its pursuit to become a global leader around its core domain of agri-business, JISL has acquired a rich pool of tacit and direct knowledge on the customer base (Small Farmers) through its strong dealer network. One of the key observations that JISL has developed over its long establishment period is the inadequacy of and / or untimely credit that the small farmer segment is delivered for his agricultural needs. In this context, JISL has decided to promote the NBFC with the overall objective of serving the small farmer and rural consituency in bridging the current gap. This will help JISL to reduce receivables in the balance sheet and significantly improve working capital cycle for the Micro Irrigation Business.

The Board has also approved transfer of the solar / renewable energy division of the company as a wholly owned subsidiary of the Company. The Board also approved modification of the object clause of the Company to suit the focused expansion in the solar / renewable energy business segment.

Mr Anil Jain, Managing Director of the Company said, "Our Company has delivered overall good operating performance during this quarter despite an unusual extended monsoon resulting in consistent wet season for major part for this period. Late withdrawl of monsoon have restricted our MIS business growth, however good recharging of underground water levels and improved financials for farmers have resulted into very good growth opportunities in the next few quarters. We are continously gearing up our production capacity and also planning raising equity funding to sustain long term growth momentum. As one can see from current debate about food inflation; it is imperative that modern technologies like drip irrigation can improve productivity significantly resulting in prosperity for farmers and possible lower inflationary trend due to increase in supply".

The results were approved at Board Meeting on 27th January, 2011 at Mumbai. 

About Jain Irrigation  
Jain Irrigation has a strong workforce of 7500 associates with global manufacturing facilities. It is always in the forefront of bringing innovative hi-tech agriculture methods at the doorstep of farmers enabling higher productivity with lower costs resulting into prosperity among farmers. Jain Irrigation is the largest Micro Irrigation and plastic pipe manufacturer in the country and is also leader in processing fruits and vegetables. It has recently stepped efforts for a new foray in renewable energy.
Jain Irrigation is also one of the few Indian companies to receive an A+ GRI checked rating for its first Sustainability Report for the year 2008-09.