Jain Irrigation Systems Limited · NSE:JISLDVREQS
Jain Irrigation Systems — Q3 FY23 Earnings Presentation
32 slides from Jain Irrigation Systems's earnings presentation, Feb 11, 2023
Slide 1: Jain Irrigation Systems Ltd. Investor Communication Letter
OJ mIN Jain Irrigation Systems Lid. Small Ideas. Big Revolutions? “Leave this world better than you found it." JISL/SEC/2023/02/B-2/B-6 - Bhavarlal H. Jain (1937 - 2016) Founder 11" February, 2023 To, To, Bombay Stock Exchange Ltd., National Stock Exchange of India Ltd., Corporate Relationship Depar
Slide 2: Investor Communication Q3FY23 & 9MFY23
Small Ideas. Big Revolutions.® Investor Communication Q3FY23 & 9MFY23 11-February-2023
Slide 3: Contents
Contents 1 Business Vertical 2 Management Commentary 3 Financial Highlights 4 Industry Tailwinds 5 About The Company 6 Investment Merits
Slide 4: Business Vertical
Business Vertical
Slide 5: Business Vertical
Business Vertical Consolidation Standalone Food Overseas Operation Hi‐tech Agri Agro Hi‐tech Agri Agro Plastic Product Others Plastic products Processing Input Products Processing Input Products Micro Irrigation PVC Piping Solar Thermal Micro Irrigation Fruits processing Plastic Sheets Fruits proces
Slide 6: Management Commentary
Management Commentary
Slide 7: Management Commentary
Management Commentary “Leave this world better than you found it.” – Bhavarlal H Jain We are pleased to share with you the results of the third quarter and nine months ended 31 December 2022. We have achieved significant growth in revenue and earnings in line with our expectations. We believe this s
Slide 8: Product diversification, customer centricity, R&D and technology will propel future growth
Product diversification, Customer centricity, Strong R&D capabilities, and Technology enabled solutions will propel our future growth Market Penetration & Industry Application ► Improving dealer density by appointing 500+ new distributors / dealers / sub-dealers in existing and unrepresented geograp
Slide 9: Financial Highlights
Financial Highlights
Slide 10: Financial Performance - Standalone
Financial Performance - Standalone All figures in ₹ Million YoY YoY Particulars Q3FY23 Q3FY22 9MFY23 9MFY22 change change Revenue 9,829 6,444 52.5% 24,475 19,797 23.6% EBITDA 1,437 831 73.0% 3,298 2,784 18.5% Margin 14.6% 12.9% - 13.5% 14.1% - PAT 225 (556) - 47 (1,100) - Cash PAT 600 (180) - 1,170
Slide 11: Financial Highlights - Standalone
Financial Highlights - Standalone All figures in ₹ Million Revenue EBITDA Revenue With increased demand in domestic market and company’s resilience to 1437 ₹ 9,829 Mn cater the needs with affordable agri 9,829 solutions, the company registered 6,444 831 52.5% significant growth of 52.5% on Y-o-Y bas
Slide 12: Segment Reporting - Standalone
Segment Reporting - Standalone All figures in ₹ Million Revenue YoY Revenue Hi-Tech Agri Quarterly growth is driven by strong 3,812 8,649 Q3 + 39.5% demand from micro irrigation business 6,865 2,134 5,974 15,609 Nine months growth is driven by strong 4,284 12,724 9M + 22.7% demand from the retail se
Slide 13: Financial Performance - Consolidated
Financial Performance - Consolidated All figures in ₹ Million YoY YoY Particulars Q3FY23 Q3FY22 9MFY23 9MFY22 change change Revenue 20,166 16,137 25.0% 56,670 50,359 12.5% EBITDA 2,388 1,739 11.8% 6,742 6,704 11.9% Margin 11.8% 10.8% - 11.9% 13.3% - PAT (495) (721) - (1,450) 496 - Cash PAT 335 115 3
Slide 14: Financial Highlights - Consolidated
Financial Highlights - Consolidated All figures in ₹ Million Consolidated revenues have depicted a good growth Revenue EBITDA Revenue fostered by demand from the Indian market and Agro Processing segment. 20,166 2,388 ₹ 20,166 Mn 16,137 1,739 25.0% The International business remained resilient amids
Slide 15: Segment Reporting - Consolidated
Segment Reporting - Consolidated All figures in ₹ Million Revenue YoY Revenue Hi-Tech Agri 12,201 10,707 Despite of stable global markets, the Q3 +18.8% Irrigation Business has registered 4,249 11,977 9,950 4,767 3,556 commendable growth on account of 3,208 increased demand in Indian markets. 9M + 9
Slide 16: Financial Position
Financial Position All figures in ₹ Million Standalone Consolidated Particulars 31-Dec-22 30-Sep-22 31-Dec-21 31-Dec-22 30-Sep-22 31-Dec-21 Non current assets 44,688 45,026 46,359 60,610 60,917 62,975 Current assets 38,320 37,252 41,913 65,405 64,564 67,322 Non current liabilities 1,187 1,267 1,526
Slide 17: Working Capital Cycle
Working Capital Cycle All figures in days 31 Dec 22 30 Sept 22 31 Dec 21 Standalone 350 Standalone Inventory AR NWC Inventory AR NWC Inventory AR NWC 301 269 274 248 225 Hi-Tech Agri 116 270 322 126 293 365 136 313 395 100 108 119 Plastic 58 138 170 58 154 157 67 165 225 Total 100 225 274 108 248 30
Slide 18: Robust Order Book Position
Robust Order Book Position Standalone Consolidated ₹ 10,803 million ₹ 14,161 million High-Tech Agri ₹ 6,433 million ₹ 6,582 million Plastics* ₹ 9,941 million Agro / Food ₹ 17,236 million ₹ 30,685 million ₹ Page 17
Slide 19: Industry Tailwinds
Industry Tailwinds
Slide 20: Recent Union Budget – What it brings for the Industry
Recent Union Budget – What it brings for the Industry…. • Allocation of ₹ 7,150 crore for Rashtriya Krishi Vikas Yojna (restructured and merged scheme PMKSY, PKVY, RADCC etc.) for achieving high growth in agricultural sector, higher returns to the farmers and for integrated development by focusing o
Slide 21: Changes in agricultural production by 2050 due to climate change
Changes in agricultural production by the year 2050 due to climate change relative to baseline* is likely to impact crop yields across the globe +2.5% +0.9% -2.6% -2.9% "Uneven climate change effects in combination with differences in adaptation capacity may give rise to a growing divide between dev
Slide 22: Rising food demand and urbanization will drive need for precision farming
Increasing population, rising food demand, urbanization and shrinking areas under cultivation will drive the need for precision farming solutions Global population (bn) Urban population (bn) Average household personal disposable income (Thousand US$ PPP*) Mature Emerging 126.5 CAGR:+0.7% 6.8 US 9.7
Slide 23: Micro Irrigation penetration growth rate is 12%
Micro Irrigation penetration growth rate is 12% Global MI Penetration % Key factors that will drive MI adoption 100% 90% 78% 80% 65% 55% Government programs and subsidies 60% 52% in developing MIS market has led to an increased 40% acceptance of the technology amongst the farmers 20% 13% 0% Tangible
Slide 24: India's plastic industry has been on an upward trajectory
India’s plastic industry has been on an upward trajectory over the last 10 years • Indian plastic market is vastly unexplored as evidenced by its low per capita plastic consumption of 13.6 kg as compared to the global average of 30 kg • With highly skewed consumption pattern towards pipes and fittin
Slide 25: Raw material prices witnessed volatility due to supply chain crisis
Raw material prices witnessed volatility due to supply chain crisis driven by Covid- 19, regional conflicts and high inflation. However, the prices have shown correction over the last few months 170 150 130 110 Rs per Kg 90 70 50 30 HDPE LLDPE PP PVC (K-67) Source: JISL Raw Material Procurement Data
Slide 26: About the company
About the company
Slide 27: Well diversified business, advanced product range and manufacturing facilities
Well diversified business, technologically advanced product range and state of the art manufacturing facilities keeps us at the heart of customer needs Hi-Tech Agri Plastic Hi-tech ► Drip & Sprinkler Systems Precision Farming Agri Inputs ► PVC Pipes, fittings, Polyethylene Pipes Advisory Turnkey Pro
Slide 28: Environmental & Social Impact
Environmental & Social Impact Farmers Reached 10 MN+ Cumulative up to March 2022 Water ~170 Cumulative impact of our products up to Jain Focus: Shareholders and Stakeholders Savings BCM March 2022 “JISL has designed its agribusiness model on the concept of ‘Resources to Roots’, which addresses water
Slide 29: Investment Merits
Investment Merits
Slide 30: 20k+ SKUs and 6 channels end-to-end
Well diversified across Uniquely positioned to Ready-to-use domestic Professionally 126 countries, 20k+ provide end-to-end manufacturing capacity to managed value SKUs and 6 channels solutions to the farmers accelerate growth by 3x driven organization from technologically without additional capex ad
Slide 31: Disclaimer
Disclaimer This investor presentation has been prepared by Jain Irrigation Systems Limited and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied shoul
Slide 32: Contact: Mr. Avdhut Ghodgaonkar
You may send your queries to Mr. Avdhut Ghodgaonkar jisl.investors@jains.com
Jain Irrigation Systems — Q3 FY23 Earnings Presentation on 6ix