Jain Irrigation – Result Analysis

In F4Q08, JISL reported standalone revenues of Rs6bn (33% YoY) and EBITDA margins of 20.6% (460bps YoY expansion) driving 72% growth in EBITDA to Rs1.2bn. MIS grew 54% YoY to Rs2.4bn with strong demand across key states while EBITDA margins remained flat at around 31%. Plastics business grew 21% YoY in F4Q08 driven by domestic pipes business (47% YoY), while the sheets business (largely exports) declined 30% YoY impacted by US housing slowdown. Agro processing (AP) grew 25% YoY owing to muted growth in fruit processing (12%).

The company is expected to report a full year EPS of Rs 25 for FY09.