Jain Irrigation Systems Q1 Profit Plummets by 66.7%

Jain Irrigation Systems reported a 66.7% decline in consolidated profit after tax (PAT) for Q1 FY25, dropping to Rs 12.2 crore. The company attributed lower revenue, down 13.1%, to reduced domestic sales partially due to the institutional business of the Jal Jeevan Mission. Future growth is anticipated in H2 FY25.

On Wednesday, Jain Irrigation Systems reported a significant 66.7% decline in consolidated profit after tax (PAT) for the first quarter ending June 30, 2024, amounting to Rs 12.2 crore.

In comparison, the company's PAT was Rs 36.6 crore during the same quarter of the previous fiscal year, according to a regulatory filing.

The company's revenue also saw a dip of 13.1% during the reviewed quarter, falling to Rs 1,477.9 crore from Rs 1,701 crore in the corresponding period of the prior fiscal year.

''As anticipated, Q1 FY25 had lower revenue, which consequently impacted margins. The overall revenue decline was predominantly due to a reduction in domestic sales related to the institutional business of Jal Jeevan Mission,'' stated Anil Jain, Vice Chairman and Managing Director of Jain Irrigation Systems.

Historically, the business environment for micro irrigation softens during periods of rainfall. However, the company forecasts a demand revival in H2 FY25, supported by a good monsoon and recent government budget announcements favoring agriculture, irrigation, and MSMEs, Jain added.

Jain emphasized, ''We expect good business opportunities in all our business verticals moving forward. The company remains focused on creating sustainable profitable growth.''

(With inputs from agencies.)