Following the merger of its worldwide branch with Rivulis, Jain Irrigation on Friday announced a more than threefold increase in its consolidated net profit for the quarter ending March 2023, reaching Rs 976.9 crore, and a reduction in debt of Rs 2,800 crore.
According to a regulatory filing, the business reported a combined net profit of Rs 279.06 crore during the prior quarter.
During the fourth quarter of 2022–23, it had a 27.14 percent growth in total revenue, from Rs. 1,372 crore the previous year to Rs.
The company's net profit for the whole 2022–23 fiscal year increased by more than twofold to Rs. 831.94 crore from Rs. 328.63 crore in FY22.
Over the aforementioned time, the total revenue rose from Rs 4,749.94 crore to Rs 5,761.80 crore.
“The business is back on course. It's been a terrific quarter all around. The merger of Jain International Trading and Rivulis, supported by Singapore's Temasek Group, has been successfully accomplished. In a video conference, Anil B. Jain, CEO and Vice Chairperson of Jain Irrigation, said that this deal had helped lower the company's debt by Rs 2,800 crore.
According to him, the transaction's earnings were used to pay off debt owed by Jain International Trading and International Irrigation Business as well as other obligations.
Consolidated debt held by the firm, which was Rs 6,649.65 crore as of December 31, 2022, was Rs 3,882.83 crore as of March 31, 2023.
He said, “We plan to bring down the overall consolidated debt by Rs 600 crore from our internal accruals by next fiscal year,” adding that debt would be decreased through enhancing the working capital cycle and generating more income.
According to the CEO, the company's interest in Rivulus has increased from 18.8% post-merger to up to 20% over the next two years as it focuses on doing business internationally.
Additionally, he said that the business will maintain its development pace in 2023–2024 and aim for a 30% rise in revenue by relying on strong rural demand.
He said that the short-term El Nino prediction from the India Meteorological Department won't have a negative effect on the company's current operations, which is mostly driven by western and southern India as well as strong demand from north India.
As of March 31, 2023, the business has a combined order book of Rs 2,300 crore, he noted.
The firm, which has its headquarters in Jalgaon, produces micro-irrigation systems, PVC and HDPE pipes, plastic sheets, agro-processed goods, renewable energy solutions, tissue culture plants, financial services, and other agricultural inputs.