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Q4FY11 Result Highlights
Jain Irrigation Systems (JISL) posted strong numbers in Q4 FY11. Total
revenue grew by 27% YoY to ~INR 12bn.
MIS segment registered a revenue growth of 36% YoY driven by
23% growth in volume. Growth in the MIS (Micro irrigation
systems) business was driven by 1157% growth in Rajasthan, 175%
growth in Karnataka, 130% growth in MP and 109% growth in
Punjab.
PVC and PE pipes segments also showed strong growth of 20%
and 18% respectively. Growth in PVC and PE pipe segments was
led by 20% & 36% YOY rise in volumes.
PVC sheets showed a decline of 9% in revenues due to 10% drop in
volume. Agro products segment grew by 15% YoY due to better
product mix.
JISL’s EBITDA increased by 9.9% YoY to INR 2,605mn while EBITDA
margin dropped by 365bps to 21.1% in the quarter. MIS segment
posted an EBITDA margin of 32% while other segments PVC pipes, PE
pipes and PVC sheets showed margin reduction of 60bp, 410bp and
620bp respectively. Agro products segment posted a steady margin of
11%, down 300bp YoY in Q4 FY11.
Net Profit shrunk by 2.4% YoY to INR 1,146mn along with net profit
margin which dropped from 11.8% to 8.9% in the quarter. Interest cost
for the company rose by 39% to INR 698mn.
Outlook & Valuation
JISL holds 55% market share in domestic MIS business. This segment is
expected to post 20-25% YoY growth till FY13E. Increased govt focus
towards food security (via farm yield) would continue to stimulate the
demand in coming years.
MIS segment has boundless opportunity with only 50% of India’s
arable land under irrigation facilities. Demand in PVC pipes is
expected to pick-up with evolving applications of these products.
At CMP of INR 178, stock is trading at 16.2x its FY12E earnings. We
recommend ACCUMULATE with a price target of INR 207.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Q4FY11 Result Highlights
Jain Irrigation Systems (JISL) posted strong numbers in Q4 FY11. Total
revenue grew by 27% YoY to ~INR 12bn.
MIS segment registered a revenue growth of 36% YoY driven by
23% growth in volume. Growth in the MIS (Micro irrigation
systems) business was driven by 1157% growth in Rajasthan, 175%
growth in Karnataka, 130% growth in MP and 109% growth in
Punjab.
PVC and PE pipes segments also showed strong growth of 20%
and 18% respectively. Growth in PVC and PE pipe segments was
led by 20% & 36% YOY rise in volumes.
PVC sheets showed a decline of 9% in revenues due to 10% drop in
volume. Agro products segment grew by 15% YoY due to better
product mix.
JISL’s EBITDA increased by 9.9% YoY to INR 2,605mn while EBITDA
margin dropped by 365bps to 21.1% in the quarter. MIS segment
posted an EBITDA margin of 32% while other segments PVC pipes, PE
pipes and PVC sheets showed margin reduction of 60bp, 410bp and
620bp respectively. Agro products segment posted a steady margin of
11%, down 300bp YoY in Q4 FY11.
Net Profit shrunk by 2.4% YoY to INR 1,146mn along with net profit
margin which dropped from 11.8% to 8.9% in the quarter. Interest cost
for the company rose by 39% to INR 698mn.
Outlook & Valuation
JISL holds 55% market share in domestic MIS business. This segment is
expected to post 20-25% YoY growth till FY13E. Increased govt focus
towards food security (via farm yield) would continue to stimulate the
demand in coming years.
MIS segment has boundless opportunity with only 50% of India’s
arable land under irrigation facilities. Demand in PVC pipes is
expected to pick-up with evolving applications of these products.
At CMP of INR 178, stock is trading at 16.2x its FY12E earnings. We
recommend ACCUMULATE with a price target of INR 207.
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