Jain Irrigation Systems rose 1.39% to Rs 135.05 at 12:14 IST on BSE after Goods and Services Tax on drip irrigation products was reduced to 12% from 18% earlier.
The announcement was made before trading hours today, 19 January 2018.Meanwhile, the S&P BSE Sensex was up 99.28 points, or 0.28% to 35,359.57.
On the BSE, 7.87 lakh shares were traded in the counter so far, compared with average daily volumes of 13.39 lakh shares in the past one quarter. The stock had hit a high of Rs 138.75 and a low of Rs 134 so far during the day. The stock hit a 52-week high of Rs 146.40 on 12 January 2018. The stock hit a 52-week low of Rs 82.80 on 24 May 2017.
The stock had outperformed the market over the past 30 days till 18 January 2018, rising 4.68% compared with 4.39% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 42.16% as against Sensex's 8.86% rise. The scrip had also outperformed the market in past one year, rising 40.43% as against Sensex's 29.12% rise.
The mid-cap company has equity capital of Rs 99.27 crore. Face value per share is Rs 2.
The Goods and Services Tax (GST) on drip irrigation systems including laterals, sprinklers products has been reduced from 18% to 12% as per decision taken at 25th GST Council meeting held yesterday, 18 January 2018. The new GST rates shall be effective from 25 January 2018. The company said it has decided to pass on this benefit of 6% directly to the customers/farmers.
This is a positive step taken by the government to encourage farmers to invest in efficient irrigation systems, which saves water and improves productivity, the company said. The firm estimates that this action will have positive impact in the upcoming busy season for its drip irrigation division.
On a consolidated basis, net profit of Jain Irrigation Systems declined 52.39% to Rs 14.33 crore on 9.91% rise in net sales to Rs 1598.21 crore in Q2 September 2017 over Q2 September 2016.
Jain Irrigation Systems is engaged in manufacturing of micro irrigation systems, PVC pipes, hdpe pipes, plastic sheets, agro processed products, renewable energy solutions, tissue culture plants, financial services and other agricultural inputs since last 34 years.
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