Jain Irrigation posted a mixed bag in the second quarter. Margins took a hit due to the micro irrigation systems business posting a subdued performance.
Anil Jain, MD, Jain Irrigation System said reduction in net profit was due to higher depreciation and some tax issues but overall in the year that issue will get compensated. However, the second half is expected to be strong on good orderbook, he said, adding that the company is on track to achieve the guided revenue growth of 20 percent in FY18.
Moreover, to achieve the guided EBITDA growth of 20-25 percent, the Q3 and Q4 needs to grow 25-30 percent more in terms of revenues and the orders in hand give us confident that we will achieve the guided EBITDA growth as well.
At India level the order book is around Rs 2200 crore and consolidated order book is at Rs 3900 crore, said Jain.
The revenues for the quarter gone by were up 10 percent at Rs 1598 crore versus Rs 1478 crore reported for the corresponding quarter last fiscal. However, the YoY profit after tax was down 52 percent at Rs 14.33 crore versus Rs 30.1 crore.
The second quarter saw some disruptions due to goods and service tax (GST), said Jain.
With regards to food processing business, he said the overall outlook was quite strong.
Going forward in FY19, the company plans to list their agro business, he said.
Moreover, the company's MIS division has bagged an order for prestigious Waghur canal integrated irrigation project through e-tendering process.
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