Jain Irrigation Systems Ltd. (JI), India’s largest irrigation-equipment maker, climbed to a 2 1/2-year high as export sales increased 46 percent and the company forecast a stronger second half of the year.
The shares rose today to 122.80 rupees, the highest since November 2011. Jain’s stock has surged 69 percent this year in India trading compared with an 8.7 percent gain by the 19-member Bloomberg World Water Index.
While the Jalgaon-based company reported an 87 percent drop in net profit for the year ended March on “significant” foreign exchange losses from a depreciating rupee, sales increased 18 percent. Exports grew 37 percent in the quarter.
“With the new government’s agenda of promotion of micro-irrigation and food-processing industries, growth shall accelerate,” the company said yesterday in a statement of two areas that account for 57 percent of Jain’s 2014 sales.
The developing El Nino weather system “may impact our business. We will know more about it in the next few weeks,” Jain also said. “We feel drip irrigation is the only effective solution for millions of small farmers against climate change.”
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