Unaudited Standalone and Consolidated Results For the Quarter / Nine Months ended 31st December, 2013
1. Revenue Growth of 24% in the quarter, with MIS growth of 25.3%.
2. Export grown by 50.7% during Nine Months and by 34.4% in current quarter Q3FY14.
3rd Quarter and Nine Month FY14 – Performance– Standalone
Amount in Rs. Crores
Nine Months FY14
Nine Months FY13
^ including other operating income and excise duty
*before exceptional item (forex–MTM)
Jain Irrigation, the largest micro irrigation Company in the country and the second largest globally, has announced unaudited standalone results for the 3rd quarter FY14 and Nine Month Period ended 31st December, 2013,showing profit of Rs 34 crores (Q3FY13– Loss of Rs. 32 cores )
The Revenue for the quarter was at Rs.994 Crores, with a growth of 24% (Q3FY13 of Rs.802 Crores). MIS has grown by 25.3%. There is strong growth in PE Pipes at 89.2 % and Tissue Culture at 106.4 %( on small base). Fruit and PVC sheet have also shown a growth of 36.2%, and 22.2% respectively. Micro Irrigation (MIS) business has grown by 25.3% on the back of good Karif crop .MIS has done better than Q3FY12 (Previous Best Q3). Domestic MIS has grown by 20% and Exports has grown by 73.5% .Exports from India grew by 34.4% in current quarter, as a part of strategy to grow exports aggressively. Overall EBIDTA is 154 Crores for the current quarter, showing an improvement of 12.2 % for corresponding quarter due to higher revenue. Adjusted PAT (before forex) is showing an improvement on YoY basis. MIS receivables (gross) are at Rs. 1,142 crores by Dec–13 which is an improvement by 14 days from Sept–13. Government subsidy in MIS on a net basis has been reduced by Rs. 55 Crore from Sept–13.Total receivable (gross) has come down from Rs.1,693 crores in Sept–13 to Rs.1,603 Crore at Dec–13, showing an improvement by 16 days of sales outstanding . Total Inventory has come down by 36 Crores during this quarter hence reduced by 10 days of sales outstanding.
The Board approved standalone unaudited results for Nine Month’s period ended 31st December, 2013. The net sales for the Nine Month were at Rs. 2,869 Crores increasing by 23.9% (Rs. 2316 Crores in corresponding Nine Month of FY13). The Company has a strong growth in Micro Irrigation by 22.2%, PE Pipes by84.3% and Tissue Culture by 37.9%. PVC Sheets, Fruit ,Onion , PVC Pipe also grown by 20.7%, 18.4%, 17.8% and 15.9% respectively in this 9 Months Period. Solar business has de–grown by 2.2% in this 9 Month Period. Micro Irrigation (MIS) business which was impacted last year due to drought and change of business model has grown by 22.2% in this 9 Month Period. Exports from India grown by 50.7%, MIS Exports has grown by 166.5% in this Nine Month’s Period. The company has Overall EBIDTA of Rs 468 crores for current Nine Month’s Period, which is 5.7% higher than corresponding Nine Month’s Period Last year. Forex losses (shown as an exceptional item) of Rs. 196 Crores due to Mark to Market (MTM) had impacted reported PAT for the Nine Month Period. However Adjusted PAT (before forex) is showing good improvement on YoY basis.
The Board approved consolidated unaudited results for 3rd Quarter & Nine Month Period FY14.
Consolidated revenue has grown by 25.9% during the quarter Q3FY14 as compared to corresponding quarter last year. There is strong growth in Micro Irrigation by 33%, Tissue Culture by 106% and PE pipe 89%. Fruit processes by 26%and Onion Dehydration by12% also Grown in this quarter. There was small de–growth in Solar by 4%. Others Like PVC pipes, Sheets were almost stagnant and have a small growth of 2% and 1% respectively. Contribution of overseas operations in consolidated revenue was at 21% in total consolidated revenue of the company .Consolidated EBIDTA is at 13.0% for current quarter as against 13.6% for corresponding quarter due to higher input cost .Overseas operation’s EBIDTA is at 6.8% for current quarter Q3FY14, as against 4.4% for corresponding quarter last year.
For Nine Month period ended 31st December, 2013, the consolidated revenue has grown by 20.6%. Contribution of overseas operations in consolidated revenue is at 30%. Consolidated EBIDTA is at 13.8% for current Nine Month ended on 31st December, 2013 as against 15.3% for corresponding Nine Month Last year, due to higher input cost. Overseas operation’s EBIDTA is at 8.1% for current Nine Month ended on 31st December, 2013, as against 7.2% for corresponding Nine Month last year. Forex losses (shown as exceptional item) of Rs. 231 crores due to Mark to Market (MTM) had impacted reported PAT .However Adjusted PAT (before forex) is good showing improvement on YoY basis.
Company looks forward to have a better Q4–FY14 with positive growth momentum on the back of a good monsoon. The Company has healthy order book (Standalone) position at Rs.1, 419 Crores by end Nine Month period on 31st Dec, 2013, across all the divisions.
In MIS, while the company has taken the growth back in Maharashtra, with 40% growth in Q3 FY14, Overall for 9 Month Period Maharashtra has grown by 24%. MIS in Karnataka has grown by 41% and in Gujarat by 17% in Nine Month Period over corresponding period last year. However Andhra Pradesh, Tamil Nadu & Madhya Pradesh de–grew, as management is still pursuing consolidation in these states and continuing its focus on subsidy recoveries.
On the back of orders from gas companies, telecom companies and government supplies, the management is hopeful of a high growth to continue in PE Pipe Division. The Food Division have good orders in hand as Dehydrated Onion and Fruit Processing Division have Rs.140 Crores & Rs.350 crores orders in hand .
Mr. Anil Jain, Managing Director of the Company said, "Though we have achieved all time high revenue in this quarter for any third quarter revenue earlier, the quarter was challenging quarter for EBIDTA Margin due to high input cost. On the back of a good monsoon, rural demand is expected to be very strong, though wet October/November has delayed the start of a busy season. Recently water regulatory authority in Maharashtra in its bid to prevent wastage of irrigated water and make irrigation system effective, has decided to make drip irrigation mandatory for farmers growing cash crops , with effect from July 1, 2015.. The company had also bagged a prestigious order of Rs 386 Crore Ramthal – Marol integrated micro irrigation project in Karnataka. It is covering 30,381 Acres and for 7000 Farmers in 35 villages of Bagalkot District of the state. It would be world’s largest integrated Micro Irrigation project. All of these points to strong growth momentum in next few quarter for domestic irrigation business. We expect to continue Export momentum in the next quarter Q4 FY14. Our efforts to reduce the receivables levels are generating results and shall continue. Inventory is still high and shall be down by March to normalized level. The company has hedged $ 30 Million out of the long term borrowings to protect itself from rupee volatility. We look forward to better performance in coming quarter despite challenging external environment, high interest rate and high raw material prices."
Jain Irrigation Systems Limited (JISL) with more than 9000 associates worldwide and revenue of 50 billion rupees is an Indian multinational company with manufacturing plants in 28 locations across the globe. It is 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 last 27 years. It has pioneered silent 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). 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 JISL.JALEQS and in BSE at code 50029. Please visit us at www.jains.com
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