Jain Irrigation's Q4 Net up 59% at Rs 173.43 cr

Micro irrigation systems provider Jain Irrigation today reported a 59% increase in its standalone net profit to Rs 173.43 crore for the quarter ended March 31, 2012.

The company had reported a net profit of Rs 109.26 crore in the year-ago period, it said in a filing to the BSE.

Jain Irrigation's standalone net sales rose marginally to Rs 1,211.62 crore in the fourth quarter of the last fiscal from Rs 1,200.16 crore in the same quarter of the 2010-11 fiscal.

The standalone net profit of the company, however fell in the 2011-12 fiscal by 9% to Rs 268.60 crore from Rs 295.27 crore in the 2010-11 financial year.

The company's net sales in the last fiscal rose by 14% to Rs 3,709.86 crore from Rs 3,250.68 crore in the 2010-11 fiscal.

Jain Irrigation's Managing Director Anil Jain said in a statement that the company faced issues like high capital costs, slowing sales in the last fiscal.

"The year passed by has been almost like a perfect storm for us. We have faced slowing sales growth, increasing delay in release of government subsidy receivables and high working capital and high interest costs, high oil and polymer prices," he said.

The depreciating rupee resulted in mark to market notional losses due to long term foreign currency assets, he added.

The Jalgaon-based company recently signed a Memorandum of Understanding with the University of Nebraska, US, to identify common research areas that will generate applicable technologies for ensuring water conservation and sustainable food production.

The company manufactures drip and sprinkler irrigation systems, besides agro-processed products like dehydrated vegetables and fruits.

Shares of the company at 1500 hours were ruling at Rs 76.05, up by 1.94% from its previous close at the BSE.