Jain Irrigation Systems Ltd. (JISL) is an agribusiness company.
Jain Irrigation Systems Ltd. (JISL) is an agribusiness 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. The 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 percent YoY to 2,583.07 crore in Q4FY19 from 2,777.70 crore in Q4FY18. EBITDA plummeted 37.81 percent YoY to 248.89 crore in Q4FY19 from 400.21 crore in Q4FY18. EBITDA margin came in at 16.9 percent for the quarter. Net profit spiraled down 39.16 percent YoY to 55.47 crore in Q4FY19 from 91.18 crore in Q4FY18 due to the impact of forex conversion. Consequently, EPS sank 44.97 percent YoY to 1.04 in Q4FY19 from 1.89 in Q4FY18.
Despite the poor performance in the fourth quarter of FY19, the company showcased a positive set of numbers for the full year ended March 31, 2019. Total income from operations rose 7.93 percent YoY to 8,576.94 crore in FY19 from 7,946.76 crore in FY18. EBITDA declined 12.30 percent YoY to 925.62 crore in FY19 from 1,055.43 crore in FY18. The EBITDA margin stood at 14.6 percent for FY19. Net profit exhibited growth of 15.08 percent YoY to 250.48 crore in FY19 as compared to 217.66 crore in FY18. EPS rose 9.18 percent YoY to 4.64 in FY19 from 4.25 in FY18.
Operating Performance
This story is from the July 8, 2019 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the July 8, 2019 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
