Jain Irrigation Systems on Monday rose as much as 16.5% on the BSE, the highest single-day percentage gain in nearly seven-and-a-half years, as its Q4 results surpassed Street expectations.
After posting a loss in the previous two quarters, the Maharashtra-based micro-irrigation firm reported a net profit of R98.53 crore for the quarter ended March 2015 on sales of R2,042.5 crore, its highest ever quarterly turnover.
After gaining as much as 18.6% during day trade, the stock closed at R66.15 on the BSE. The Sensex closed 363.30 points, or 1.33%, up at 27,687.30. Trading volumes on counters of the BSE and the NSE jumped more than 10-fold against its 30-day average volume. On Monday, over 2.84 crore shares were traded, adding R428 crore to the market capitalisation.
Though uneven weather has dampened Jain Irrigation’s micro-irrigation business, the performance of other divisions, such as piping and food, helped the company post a double-digit growth in both the top and the bottom line. While net sales grew 11.4%, net profit rose 30.1% y-o-y. The piping division grew about 31% in the fourth quarter, whereas the agro processing business grew almost 24% during the same period.
“We have maintained double-digit growth despite a significantly adverse agriculture situation in the country. Pipe business has started seeing growth based on new orders from infrastructure players,” said Anil Jain, MD & CEO, Jain Irrigation in an earnings call. The company brought down the debt level by about R360 crore, bringing cheer to investors.