Jain Irrigation has reported that net profit in the March quarter more than doubled to ₹977 crore against ₹279 crore logged in the same period last year, largely due to overseas asset stake sale.

Income was up 27 per cent at ₹1,747 crore (₹1,373 crore).

The company has closed a deal to merge its overseas business with Temasek-owned Rivulis Irrigation. It recognised an income of ₹1,235 crore during the quarter. Jain Irrigation, which holds 18 per cent stake valued at $137 million in merged entity, will be hiked to 20 per cent by end of this fiscal.  

Anil Jain, Vice-Chairman and Managing Director, Jain Irrigation, said the company will continue to supply goods from India to the merged overseas business and generate substantial revenue.

“We plan to reduce consolidated debt by ₹600 crore in this fiscal on savings from reduced working capital cycle and buoyant demand,” he added.

Promoters also plan to repay ₹200 crore of loan and revoke the entire pledged shares in this fiscal, he said.

In the last one year, the company has implemented a restructuring plan. Its bank account was reclassified to standard asset and transferred to commercial branches.

Revenue increase

Jain Irrigation expects its revenue to increase 30 per cent in this fiscal with even faster growth in EBITDA as the net working capital cycle reduced to 250 days from 340 days. It will further come down to 150 days in this fiscal as the company plans to push more business through dealers.

On a consolidated basis, overall interest outgo has reduced by ₹200 crore in FY23. In FY24, it is expected to increase to ₹320 crore.

Following partial sale of overseas asset, the company’s networth has increased to ₹5,181 crore from ₹ 3,656 crore as of last March. The company has an outstanding loan exposure of ₹200 crore to farmers and plans to recover it fully.

Consolidated debt reduced to ₹3,580 crore as of March-end from last year’s level of ₹6,010 crore on repayment of bond and international irrigation business debt.

The company’s order book stands at ₹2,355 crore which includes orders of ₹592 crore for Hi-tech Agri Input Products Division, ₹757 crore for Plastic Division and ₹1,005 crore for Agro Processing Division.