Jain Irrigation Q1 net profit drops 6.8% to Rs 18.76 crore

Leading micro-irrigation company Jain Irrigation today reported 6.8 per cent drop in its consolidated net profit at Rs 18.76 crore for the first quarter of the 2015-16 financial year.
The company had posted a net profit of Rs 20.13 crore in the year-ago period, it said in a BSE filing.
Total income of the company rose marginally to Rs 1,587.41 crore in the April-June period of this fiscal from Rs 1,553.37 crore a year ago.
Of that, a revenue of Rs 1,034.53 crore was garnered from the sale of high-agri input products like micro-irrigation systems; Rs 537.97 crore from industrial products, including plastic sheets; and Rs 14.91 crore from green energy.

However, the company's financial cost increased to Rs 166.31 crore in the first quarter of this fiscal from Rs 145.76 crore in the year-ago period.
Commenting on the performance, Jain Irrigation Managing Director and CEO Anil Jain said, "The current quarter shows good results with revenue growth and better margins despite extreme weather events which impacts our business significantly."

He said agrarian distress continues in the country wherein climate change has compounded with six years low agriculture commodity prices cycle.
"We remain positive going forward as our product range and the business model helps farmers tackle climate change and also creates higher income farmers," Jain said in a separate statement.

"We will further improve our working capital cycle in the remaining FY16 so as to achieve our target of deleveraging while growing business in double digits," he added.
The company has manufacturing plants at 28 locations across the globe. It manufactures micro-irrigation systems, PVC pipes, HDPE pipes, plastic sheets, agro-processed products, renewable energy solutions, among others.
Jain Irrigation shares rose 0.53 per cent to settle at Rs 76 apiece on the BSE today.