India's largest agri-irrigation company Jain Irrigation Systems posted a 24% jump in consolidated net profit for its fourth quarter, logging profits in at Rs. 77.63 crore. Some of the growth came, as JISL management had predicted, from postponed spending from the demonetization quarter.
With this, has JISL has followed up a decent performance in Q3, where it delivered growth despite the demonetization effects on the rural sector. Overall for the year, the company saw an almost 4X jump in consolidated net profit, which now stands at Rs. 176.24 crore compared to Rs. 48.68 crore in the previous year.
The firm is is a market leader in the domestic MIS segment with over 50% market share, and the largest player in food processing domestically. It is well-placed consequently, to benefit from planned government spends in MIS and food-processing, as the Centre pushes for modernisation and better technology in the rural and food sectors. There are however, Rs. 1,000 crore worth of government projects that the company has already been awarded, that are currently delayed.
PVC and PE pipe industry growth, which is expected to expand with the growing economy, will also be an important revenue source for the firm. The firm is also looking at growing aggressively through more acquisitions after ther two US acquisitions it had completed in April this year. Jain Irrigation's share price has been up sharply since the announcement of Q4 results.