Jain Irrigation, the largest micro irrigation Company in the country and the second largest globally, has announced standalone results for the quarter and nine months ended 31st December 2011.The net sales for the quarter were at Rs 816 Crores up 18% (against corresponding quarter net sales in FY 2011 at Rs 693 Crs). MIS (Micro Irrigation Systems) has shown a growth of 11%, Pipe business grew by 27%, PVC sheets, Tissue Culture and Green Energy have been the star performers, recording a growth of 49%, 116% and 201% respectively albeit on a small base. Lower growth in Micro Irrigation Business is result of Companies efforts to reduce high receivable label and improve cash collection.
Export business has continued to reflect robust overseas demand. Overall exports for the Company were up by 17% at Rs 150 crs on the back of stellar growth performance of MIS (54%) and PVC Piping (176%) and PVC Sheets (48%).
EBIDTA for the quarter was at Rs.190 Crores (Rs. 176 Crores Q3 FY 11) demonstrating a growth of 8% (adjusted 31%). Overall the finance cost was at Rs.92 Crores registering 60% increase underscoring high working capital utilisation and high interest rate regime. The PAT was down to Rs. 1 crore down by 98%, primarily on account of notional foreign exchange losses due to steep depreciation of Rupee against US dollar. The Fx loss was Rs. 71 Crores in Q3 FY 12 against gain of Rs. 7 Crores in Q3 FY 11
The Board also approved standalone unaudited results for nine months FY 2012. The net sales for the nine months were at Rs.2498 Crores up 22% (against net sales of Rs. 2051 Crs in FY 2011). MIS has shown a growth of 21%, Pipe business grew by 8%, agro processing business recorded a growth of 27%, while PVC Sheet grew by 39% and Green Energy business grew by 183%.Corporate EBIDTA for the nine months was at Rs.600 Crores (Rs.482 Crores) demonstrating a growth of 25%. In nine months FY 2012 the Company has made tax provisions of Rs.34 Crores. Net profit for the nine months was down by 49% at Rs. 95 Crores (against net profit of Rs. 185Crs in nine months FY 2011) primarily due to notional foreign exchange losses in view of the steep depreciation of Rupee against US dollar in second half of CY 2011.
The order book is at healthy Rs. 894 crs. is encouraging for current quarter. However, we are seeing some slowdown in rural demand in current quarter due to lower realisation.
Farmers are getting for their agri-produce. We expect additional benefits in current and next quarters from appreciating rupee, lowering of interest rates and improved business results from overseas subsidiaries.
Mr. Anil Jain, Managing Director of the Company said, "Challanging and volatile external environment has affected overall business scenario. While our revenue has grown at satisfactory level; net profits have been impacted due to mark to market forex depreciation and high interest cost. We continue to focus on balance sheet and our inventory and receivable level have improved last quarter in line with our expectation. Going forward, we plan to further lower working capital cycle to create sustainable business model in long term".
About Jain Irrigation (www.jains.com)
Jain Irrigation is a diversified Company with more than 8,000 employees and a product portfolio encompassing Irrigation Product, Piping Products, Plastic Sheets, Dehydrated Foods, Fruit Puree, Juice concentrates and Solar Energy Systems. 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.