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Un-audited Standalone and Consolidated Financial Results For the quarter and half year ended 30 September 2022

Amounts in INR million
Particulars 2Q FY23
2Q FY22
2Q FY23
2Q FY22
Revenue 6,028 6,385 16,076 16,446
EBIDTA 766 931 1,661 2,328
PAT -123 -379 -897 1,083
Amounts in INR million
Particulars 1H FY23
1H FY22
1H FY23
1H FY22
Revenue 14,646 13,353 36,504 34,221
EBIDTA 1,861 1,953 4,355 4,966
PAT -178 -594 -954 1,217

Jain Irrigation Systems Limited, the largest Micro Irrigation Systems Company in the country and second largest globally, has announced un-audited standalone and consolidated results for the second quarter and first half year of FY 2023.

Standalone Performance Overview: 2Q FY23 & 1H FY23 :

  • Despite above par rainfall, unfavorable geopolitical and high inflationary environment, the company achieved 95% of its Q2 FY22 revenue in a seasonally weak quarter
  • While higher input costs during Q2 FY23 affected the margins, the cash profitability improved due to savings in finance cost post the successful implementation of debt resolution plan
  • Hi-Tech Agri division: Quarterly growth is driven by Tissue Culture business as demand for banana saplings continues to grow. Half yearly growth is driven by strong demand from the retail segment of micro irrigation business
  • Plastic division: Sale of PVC pipes in the current quarter was impacted by an extended monsoon season. Global supply chain disruptions further impacted export of PVC sheets. On a half yearly basis, the plastic segment sales grew 2% on the back of higher retail sales
  • Standalone net debt as on 30 September 2022 – at ₹ 27.28 Bn, slightly increased from 30 June 2022 on account of higher utilization of cash in operations
  • Order book: Stands at ₹ 17,854 million which includes orders of ₹ 12,286 million for Hi-tech Agri Input Products Division, ₹ 5,566 million for Plastic Division

Consolidated Performance Overview: 2QFY23 & 1HFY23:

  • Consolidated revenues have remained resilient amidst weak global cues
  • Domestic plastic business witnessed degrowth primarily due to extended monsoon and supply chain disruptions. This decline was partially offset by growth in international food business
  • Overall margin has come under pressure due to inflationary environment, higher energy cost and withdrawal of Covid linked labor subsidies in Europe. We expect margins to improve as polymer prices have corrected. Further, higher demand will lead to better fixed cost absorption
  • Hi-Tech Agri division: Micro Irrigation sales have remained resilient despite a global slowdown in the sector
  • Plastic division: While the revenue grew in the overseas markets, the growth was offset in the consolidated results due to weakening of GBP & Euro. On the domestic front, there was weak demand in PVC piping business
  • Agro Processing: Food processing business in the UK market showed robust demand. However, domestic market witnessed delays in lifting of orders by institutional customers
  • Consolidated gross debt as on 30 September 2022 – at ₹ 65.68 Bn, increased from 30 June 2022 due to sharp depreciation in Rupee against US Dollar
  • Order book: Stands at ₹ 30,177 million which includes orders of ₹ 16,192 million for Hi-tech Agri Input Products Division, ₹ 5,715 million for Plastic Division and ₹ 8,270 million for Agro Processing Division

The Vice Chairman and Managing Director of the Company, Mr Anil Jain said:
We are pleased to share with you the results of the second quarter and half year ended 30 September 2022.
Despite weak global cues, the Company has shown resilience as reflected in consolidated revenue of ₹ 16.1 billion (EBITDA margin 10.3%) for the quarter. Further, on a half yearly basis, the consolidated revenue grew 6.7% to reach ₹ 36.5 billion (EBITDA margin 11.9%).
The margins have been adversely impacted due to volatility in polymer prices. This is seasonal and transitory in nature given that, historically, our revenue split has been 40:60 in favor of the second half of the year. We expect margins to improve as a result of higher demand and better fixed cost absorption on a full year basis. Correction in polymer prices in recent months will augment demand as our products become more affordable to the customers
During the quarter, the company secured a rate contract agreement worth ₹ 20,675 Mn under ‘Jal Jeevan Mission’ in Maharashtra. The Company remains steadfast in its efforts to improve margins and cash flows to achieve our long-term goals.

About Jain Irrigation
Our Company, Jain Irrigation Systems Limited (JISL) with it’s motto ‘Small Ideas, Big Revolutions’ with more than 10,000 associates worldwide and revenue of ₹ 71 Bn, is an Indian multinational company with manufacturing plants in 29 locations across the globe. JISL, its subsidiaries and associates are engaged in manufacturing of Micro Irrigation Systems, PVC Pipes, HDPE Pipes, Plastic Sheets, Agro Processed Products, Renewable Energy Solutions, Tissue Culture Plants, Financial Services and other agricultural inputs since more than 34 years. It has pioneered a silent productivity revolution with modern irrigation systems and innovative technologies in order to save precious water and has helped to get significant increase in crop yields, especially for millions of the small farmers. It has also ushered in new concept of large scale Integrated Irrigation Projects (IIP). ‘More Crop Per Drop™ ’ is the company’s approach to water security and food security. All the products & services of JISL help create sustainable future while fulfilling its vision ‘Leave this world better than you found it’. JISL is listed in NSE Mumbai at JISLJALEQS and in BSE at code 500219.

The information in this release has been included in good faith and is for general purposes only. It should not be relied upon for any specific purpose and no representation or warranty is given as regards to its accuracy or completeness. No information in this press release shall constitute an invitation to invest in Jain Irrigation Systems Limited. Neither Jain Irrigation Systems Limited, nor their or their affiliates’ officers, employees or agents shall be liable for any loss, damage or expense arising out of any action taken on the basis of this release, including, without limitation, any loss of profit, indirect, incidental or consequential loss.