Dalal Street Investment Journal - July 09, 2019

18 DALAL STREET INVESTMENT JOURNAL I JULY 8 - 21, 2019 DSIJ. in^

Jain Irrigation Systems Ltd.

(JISL) is an agri business

company. It boasts a

production capacity of

more than 5,00,000 M.T.

per annum, which is

equivalent to 8,000 km/day.

It is renowned for being the

only manufacturer to own a

DSIR approved R&D set-up. The

company's micro-irrigation division is

engaged in the manufacturing of

precision-irrigation products and

providing services such as soil survey,

engineering design and agronomic

support. It also operates an expansive

2,300 acre hi-tech agri institute. Jain

piping division is the largest producer of

thermoplastic piping systems including

PE and PVC pipes and fittings for pipes

ranging from 3 mm to 1,600 mm in

diameter and in pressure ratings ranging

from 1.00 kgf/cm2 to 25 kgf/cm2.

Financial Performance

The company delivered a dismal

consolidated financial performance for

the quarter ended March 2019. Its total

income declined 7.01 per cent YoY to

`2,583.07 crore in Q4FY19 from

`2,777.70 crore in Q4FY18. EBITDA

plummeted 37.81 per cent YoY to

`248.89 crore in Q4FY19 from `400.

crore in Q4FY18. EBITDA margin came

in at 16.9 per cent for the quarter. Net

profit spiralled down 39.16 per cent YoY

to `55.47 crore in Q4FY19 from

`91.18 crore in Q4FY18 due to the

Presently, the company

has an order book of

`5,152 crore. The focus

will be on executing the

same with the intention of

lowering receivables. The

management also intends

to focus on overseas orders

of MIS and plastics, which

are secured and will entail a

receivable cycle of 90 days.

Analysis Equity

Jain Irrigation Systems Ltd. (JISL)

DRAIN OUT YOUR PORTFOLIO OF JAIN IRRIGATION

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