Revenues up 29.4%, Profits up 24%
Q3 FY09 Standalone Highlights
- Net sales increase by 29.4% at Rs. 531.90 crores
- The revenue growth has been achieved on back of 62% growth in agro processed products and 40% growth in MIS/SIS
- EBIDTA margin has expanded by 150 bps due to optimal product mix and lower raw material prices
- Net profits are higher at Rs. 55.64 crores, up by 24% over last year
Agri-Irrigation major Jain Irrigation Systems Ltd (JISL) has announced very encouraging Q3 FY09 standalone numbers. This growth has been achieved by the Company in the most challenging environment and has been achieved with rebalancing of its product portfolio and enhanced focus on rural India.
The Q3 FY 09 revenues have grown 29.4% at Rs.531.9 crores as against Rs.410.90 crores last year. The domestic revenues which constitute around 77% of total revenues have grown by above 33% at Rs.411.4 crores as against Rs.308.3 crores last year. The growth is achieved on back of about 50% increase in piping revenues and 38% growth in MIS/SIS (Micro Irrigation Systems) revenues in the quarter.
The export business which constitutes 23% of the total revenues, have grown at 17.4% mainly on back of multifold growth in MIS/SIS, and agro processed divisions. On a corporate basis the top performing divisions are MIS/SIS (40%) and Agro processed (62%).
The Corporate EBIDTA has grown by 39% to Rs.116.5 crores for quarter as against Rs.83.8 crores last year. The EBIDTA margin at 21.9% reflects a jump of 150 bps over the last year’s level. The EBIDTA margins have increased due to significant margin expansion in agro processed products and steady expansion in MIS/SIS due to better product mix. After absorbing the higher notional loss of Rs.8.66 crores on Long Term Foreign Currency loans, the net profit is 24% higher at Rs. 55.6 crores as against last years Rs.44.85 crores.
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Anil Jain, Managing Director Jain Irrigation Systems Ltd. said, “It was one of the most challenging quarters in every sense. During the quarter we went thru rationalization of plant facilities while moving them to larger and better planned production facilities. Polymer prices came down sharply and went up again to a certain extent. However, demand spurt in domestic piping segment in post monsoon agriculture season, pricing advantage in micro irrigation segment and better cost absorption in food division helped us to enhance our margins.
“The domestic markets for our products remain strong, except for slowing piping applications in infrastructure sector. In the last 2 months we have experienced lower off-take from our US and European customers for our food products. We expect lower costs on all fronts and better working capital management to help us in our quest for managing sustained growth despite negative and deflationary economic environment. We will continue to monitor developments in markets closely and adjust our responses to ensure optimum outcome” further added Anil Jain
The overall economic environment continues to be both volatile and challenging. Macro and micro economic scenario has radically changed around the world with a degree of variation. However, some stability is likely to emerge over the next few months on polymer price front. The agriculture scenario in India is expected to range from stable to buoyant. This is very encouraging for our Company. Government through various programs continues to support agriculture in particular and rural India in general (visit www.jains.com/misad.pdf). This will enable us to maintain around 60% growth in fast growing micro irrigation on annual basis. With this background the Company expects to maintain the growth in Q4 FY09 at similar pace to Q3 FY09. The order book is healthy at Rs.592 crores for near future business.
The results were approved at a meeting of Board on 30th January 2009 at Jalgaon (Maharashtra).
About Jain Irrigation (www.jains.com)
Jain Irrigation is a diversified Company with more than 5,000 employees and a product portfolio encompassing Irrigation Products, 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.