News @ Jains - Jain Irrigation-Net Jumps 150%

Jain Irrigation has reported substantial increase in profit for its Q3 FY 2005-06 results. The company has declared 54% increase in net sales income comprising of almost 78% growth in domestic business at Rs.149.79 crores and just under 18% growth in exports at Rs.69.60 crores for the Q3 FY 2005-06.

Companys net profit has gone up by 150% for the current quarter from Rs.6.09 crores to Rs.15.25 crores. For the entire 9 months, net profit has gone up by 132%. The operational EBIDTA margin for Q3 FY 2005-06 at Rs.36.46 crores has improved by 185 bps [17.67%] despite raw material price rise. The net EBIDTA margins have, however, declined at Rs.33.34 crores marginally by 60 bps [15.12%] compared to same period last year after absorbing Rs.3.12 crores forex loss.

On year to-date, 9-month basis, the domestic growth in revenue is approximately 50% at Rs.335 crores and just over 20% at Rs.194 crores for exports, whereas the overall corporate revenue growth is 37% as compared to corresponding 9 months of previous year. The MIS/SIS, PE Pipes, Food Processing & PVC Sheet Divisions continue to have robust demand and even last quarter will also see further significant growth. The company has announced an ambitious Capex Plan of Rs.225 crores recently and is expected to tie up funds for the plan before the end of current Financial Year.