Jain Returns to Profit in India as Irrigation Sales IncreaseRandall Hackley
Jain Irrigation Systems Ltd., Asia’s top irrigation-equipment maker, returned to profit in the first quarter, helped by growth in its micro-irrigation business and improved sales in water-challenged India.
Jain, whose drip and sprinkler systems allow farmers to irrigate more land more efficiently with less water, said today in a statement that sales in the quarter ended June rose 2.5 percent to 9.9 billion rupees ($161.8 million) from a year ago. Net income was 161.2 million rupees compared with a 465.1 million-rupee loss in the year-earlier period. That trailed five analysts’ median estimates for a 560 million-rupee profit.
The company, based in Jalgaon, is India’s largest irrigation equipment maker. Revenue was aided by a 31 percent increase in its domestic micro irrigation business including a 975 million-rupee project order from Himachal state as well as “strong traction” in overseas revenue, it said.
“Significant growth is back on track,” Managing Director Anil Jain said in the statement. An “improved monsoon is expected to generate a much stronger second half for the company.” The shares have climbed 35 percent in India trading this year and doubled over the last 12 months.