Jain Irrigation sees sales at Rs 2,200 crore for FY08

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Jain Irrigation sees sales at Rs 2,200 crore for FY08

Anil Jain, MD of Jain Irrigation informs that 50% of Rs 750 crores is going into micro irrigation and 25% will go into food processing. He adds that the remaining will go into piping as well as the general infrastructure.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See latest News about Jain Irrigation See previous management interviews See what other Experts & Brokerages are saying about Jain Irrigation Jain Irrigation BSE | NSE 25/05/12 Are Mutual Funds betting on Jain Irrigation?

Anil Jain , MD of Jain Irrigation informs that 50% of Rs 750 crores is going into micro irrigation and 25% will go into food processing. He adds that the remaining will go into piping as well as the general infrastructure.

Excerpts from the exclusive interview with Anil Jain:

Q: 86 lakh warrants to promoters will take your promoter stake upto about 38%. That would mean about Rs 400 crore coming into the company but besides that you have got a fairly aggressive capex plan of about Rs 750 crore. Can you give us a break up as to how much percentage to each segment would come from this 750 crore?

A: About 50% of Rs  750 crores will go into micro irrigation and about 25% will go into food processing. The remaining will be used for piping as well as the general infrastructure such as some energy saving alternative or energy scenarios etc. But majority will go into irrigation sector, within India as well as outside India since our main acquisition as of now has only been in the field of irrigation.

Q: Rs 2200 crore is sales target that you have kept for FY08 on the bottomline,  what is it that you may deliver in terms of an EPS?

A: In terms of EPS based on the equity, as of now our EPS should be around approximately Rs 21 as against Rs 39.50 as on March '07.

Q: One final word on the new acquisition that you have made, will that contribute as well in this financial year's profit building and if so by how much?

A: It would not contribute significantly because this is the first year and a lot of integration and synergy benefits would actually kick in the next financial year  since we are shifting their plants. Majority of the profits in the current year would come in from domestic sources. For example, if you look at Rs 2200 crore, which we expect on a consolidated basis annual turnover, about Rs 1850 crore is going to come from India whereas Rs 350-400 crore will come from outside India.  Majority of the profits in the current year would come from our domestic business, a part of which is exports but most of that production will be taken locally and next year onwards we expect the overseas entities to start contribute to that.