Jain Irrigation has reported an 81 per cent drop in net profit at Rs 12 crore (Rs 62 crore) in the second quarter of this fiscal, mainly due to a forex loss of Rs 59 crore, against a gain of Rs 22 crore registered in the comparative quarter last year. Net sales improved 18 per cent to Rs 750 crore (Rs 637 crore).
Micro-irrigation systems (MIS) have shown a growth of 21 per cent; pipe business fell by 8 per cent; PVC sheets, tissue culture and green energy have been the star performers, recording a growth of 71 per cent, 54 per cent and 132 per cent, though on a small base, said the company, in a press release on Monday.
Exports were up 65 per cent at Rs 219 crore on good performance by MIS (101 per cent growth) and PVC Piping (118 per cent) and PVC Sheets (70 per cent). Earnings before interest, depreciation and taxes for the quarter was at Rs 180 crore (Rs 141 crore), up 28 per cent. The finance cost was at Rs 81 crore, registering an increase of 56 per cent — underlining the high working-capital need and tightening interest-rate regime, it said.
Mr Anil Jain, Managing Director, said it was one of the most challenging quarter for the local business because of above-normal monsoon which prevented farmers from entering the fields. Besides there were issues of high receivables and tight liquidity. “After a year of subdued export market, we have received good orders across businesses — which will help us augment overall performance of the company in coming quarters.”