Jain Irrigation Systems (500219) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue declined 13.1% year-over-year to ₹14,779 million, mainly due to lower domestic sales and a strategic reduction in project business, with EBITDA at ₹1,808 million and net PAT at ₹122 million.

• Segment revenues: Hi-Tech ₹4,450 million, Plastics ₹5,660 million, Agro-processing ₹4,649 million; respective EBITDA: ₹680 million, ₹660 million, ₹480 million.

• Lower utilization and project closures in India impacted revenues, but overseas plastic sheet and pool businesses showed positive growth.

• Receivables reduced by ₹1,500 million from March, but inventory increased due to seasonality and weak quarter.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board and reviewed by statutory auditors with an unqualified opinion.

Financial highlights

• EBITDA margin: Hi-Tech 15.6%, Plastics 11.7%, Agro-processing 10.3%; consolidated EBITDA margin at 12.2% (vs. 12.9% YoY).

• Cash PAT at ₹732 million; net cash from operations at ₹1,280 million (consolidated), both slightly lower than last year.

• Standalone debt stable at ₹24,686 million; consolidated borrowings at ₹37,561 million as of June 30, 2024.

• Maintenance CapEx at ₹450 million, depreciation at ₹600 million.

• Standalone and consolidated net profit for Q1 FY25 were ₹644 lakhs and ₹1,223 lakhs, respectively.

Outlook and guidance

• FY25 revenue guidance of ₹70,000 million reaffirmed, expecting a strong H2 as monsoon and election disruptions subside.

• Order book: ₹10,000 million (India), ₹18,000 million (consolidated), with ₹10,000 million in food business.

• Management expects most government project receivables (₹8,000–9,000 million) to be realized by June next year.

• Anticipated benefits from increased budget allocations to agriculture, irrigation, and MSME sectors.

• Business model shift to dealer/retail focus and cash sales to improve cash flow and reduce receivables.