Jain Irrigation Posts A Net Profit of Rs 81.6 crore In Q4FY14, Up 95%

Jain Irrigation's sales for the quarter came in at Rs 1428.1 crore as compared to Rs 1311.8 crore in the corresponding quarter las year, reporting a growth of 8.9%. The export business of the company has continued to reflect robust overseas demand with the export sales coming in at Rs 312.3 crore in the current quarter against Rs 228.6 crore in the same quarter last year. Micro irrigation systems (MIS) has shown a growth of 21% on yearly basis. In absolute terms, EBITDA of the company stood at Rs 235.7 crore in Q4FY14 as compared to Rs 246.8 crore in Q4FY13. Overall, the profit after tax (PAT) for the quarter was reported at Rs 81.6 crore against Rs 41.9 crore in the corresponding quarter last year, a jump of 95%.

The company's PVC sheet has grown by 116.8%, PE pipes has grown by 22.8% and the Fruit processing business reported a growth of 37.5%. Other business, PVC pipes, Solar and Tissue Culture has declined by 8.4%, 53.8% and 6.9% respectively. The decline in PVC pipes, Tissue Culture was mainly due to extended monsoon and hailstorms in some areas. Solar business has declined due to management's focus on controlling subsidy receivebles and code of conduct in peak business period.

The cash to cash cycle of the company has reduced to 136 days (DSO), as compared to 164 days (DSO) in the corresponding quarter last year. The net debt of the company as on 31 March, 2014 was at Rs 2820 crore, which has shown a reduction of 9% on a sequential basis as the debt of the company for the quarter ened 31 December, 2013 was at Rs 3110 crore.

Mr. Anil Jain, Managing Director, Jain Irrigation, said, "The year FY14 was a year of consolidation for us. After change in business model in FY13, this was the first full year of operation under new model. The farmers have accepted the new business model and MIS in Maharashtra has taken back to growth. Export has contributed a lot in the growth and shall continue to do so in the future. The company has a healthy order book position for coming year. Post elections internal situation has become more stable and predictable. With new government's agenda of promotion of micro irrigation and food processing industries, growth shall accelerate. These two segments account for 57% of Jain's FY14 revenue and 75% of its FY14 EBITDA. Stable government would likely lead to a stable or appreciating rupee, which could reverse some MTM write downs."