One-time gain sends Jain Irrigation’s net up by 251% at ₹977 crore Apextalk

Mumbai: Agri-input product and services firm Jain Irrigation Systems Ltd, on Friday, announced a 251% year-on-year jump in March quarter net profit at 976.7 crore for FY2023, primarily on the back of a Rs.1234.6 crore one-time gain on sale of discontinued operations.

The company, which has been witnessing a worsening return on capital employed over the past few years, is now focusing on improving operating margins by expanding dealer network, said the company’s vice chairman and managing director Anil Jain while announcing the financials.

The Jalgaon-based company has just concluded a cash-and-stock merger with Israel-based micro and drip irrigation firm Rivulis Irrigation Ltd. on 29 March.

Post the merger, Jain (Israel) B.V. will hold a minority stake of about 18.7% in Rivulis Pte. Ltd.

A proportion of the (merger) transaction proceeds has been utilised for debt repayment in the company’s international irrigation business, which has led to a significant reduction in debt at consolidated level.

Accordingly, the company’s consolidated debt has been reduced from Rs.6,645.65 crore as on 31 December to Rs. 3,882.83 crore as on 31 March.

Jain Irrigation’s revenue for the March quarter increased by 27% to 1,745 crore as compared to 1372.7 crore in the corresponding period of last year.

Jain Irrigation promoters are embarking on a debt reduction strategy for FY2024 and while announcing the financials, Anil Jain told Mint that the firm has plans to “completely eliminate the promoter pledges”, which currently stands at 17.91% (of the overall company’s stake).

“The company will allocate about Rs. 200 crore to release the pledges,”said Jain.

Jain Irrigation has reduced its year-on-year debt by 41.9% to 3,721.9 crore as of 31 March, 2023.

For FY2023, the company reported a net profit of 827.7 crore, a 154.8% increase compared to 324.9 crore in the previous fiscal year. The company’s total revenue grew 21% to 5,747.6 crore during the fiscal from Rs. 4,733.3 crore in FY2022.

Jain Irrigation closed marginally lower at 39.85 apiece on the BSE.

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Updated: 26 May 2023, 09:04 PM IST

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