Jain Irrigation at 10% UC

Jain Irrigation, which had closed yesterday at Rs.25.95, opened today at Rs.28.50, hitting its 10% UC of the day. Its not too far from its 52-week high of Rs.29.55.

Though the company posted a net loss on a standalone basis, the market is pretty kicked up that the loss has narrowed down from a huge Rs.228 crore to loss of Rs.22 crore in Q4FY21 (YoY).

On a consolidated basis, the company for the quarter posted a net profit of Rs.64 crore on revenue of Rs.1794 crore, up 19%. EBITDA margin went up from a meagre 1% to 11%.

The company ended the fiscal with a net loss to Rs 307.31 crore against a loss of Rs 508.30 crore in the previous year.

The exports from India is at a healthy level of Rs 525 crore during the year. The present order book is at Rs 4,188 crore, which gives the comfort on revenue visibility. The demand environment is conducive for the company’s products, given the fact that agriculture sector is showing good traction in the economy. The working capital efficiency has improved by 10% (50 days) for standalone operations in terms of reduction in the DSO (days sales outstanding). Over all the company has been able to reduce consolidated net debt by Rs 425 crore (YoY).