Jain Irrigation Systems Ltd. — Interim / Quarterly Report 2020

Feb 14, 2020

				INR Mn
Particulars	Q3 FY20(Consolidated)	Q3 FY19(Consolidated)	Q3 FY20(Standalone)	Q3 FY19(Standalone)
Revenue	13,000	20,377	3,524	10,985
EBIDTA	$-819$	2,722	$-943$	2,011
PAT	$-2,838$	915	$-1,832$	630

Particulars	9M FY20(Consolidated)	9M FY19(Consolidated)	9M FY20(Standalone)	9M FY19(Standalone)
Revenue	45.796	59,939	15,763	31,082
EBIDTA	2.680	8,213	685	5,598
PAT	$-3,953$	1,981	$-2.801$	1,522

INVESTOR COMMUNICATION Q3 FY19-20

The journey of Jain Irrigation Systems Ltd . started with a young boy who wanted to excel at his studies, even if it meant studying under the only lamp in his village . His determination an ideas revolutionalised the face of the agricultural industry in India and in turn, he was recognised globally for his work .

But more than recognition, it was his devotion to do good for the society that gained him the affection of millions .

In no time, our founder chairman, Late Mr. Bhavarlal Jain

became 'Bhau' (brother) for all those who worked with him . His journey became an inspiration and his legacy laid the foundation of JISL .

Bhau nurtured every member of JISL in such a way that they adapted these values as their own with the same commitment and passion . To the point that the lesson of unity runs in the DNA of the organisation and each member of JISL is its proud guardian . Across geographies, JISL leadership and management team is experienced with an established track record over decades .

Fortune magazine hailed JISL as the only Indian Company in the top 51 companies who change the world by 'Doing Well by Doing Good' . Even when we've come so far, all the services and achievements of JISL are direct outcomes of this deep -rooted value . The principles of staying and working as one aren't just things that we write on the wall . They're commitments held by every associate, stakeholder partner and farmer. They're tenets that have stood true through time and have been shared between generations . They're values that live in the stories of the associates of JISL .

Q3 – Highlights

Hi-tech Agri Input Division ( Hi-Tech)

• •Overseas MIS business is stable
• India business impacted by liquidity issues and change in focus

Plastic Division ( Plastic)

• India business impacted by demand sluggishness and liquidity issues
• •Overseas plastic sheets business growing

Agro Processing Division ( Agro)

• •Revenue growth of more than 20% y-o-y in India business
• 30 % growth in revenue in US foods business and in Belgium trading business

Way forward

• Focus on executing order in hand worth 4300 cr
• Focus on Working Capital and Operational efficiency
• Focus on deleverage in Balance Sheet
• Softening of Crude prices and increase in Rabi sowing will help the business

Standalone		Rs. Mn
	Q3FY20	Q3FY19
Revenue	3,524	10,985
EBIDTA	-943	2,011
PAT	-1,832	630
Cash PAT	-1,435	1,022

Significant impact in revenue and earnings

Financial Performance: Q3 FY20

Consolidated	Rs. Mn
	Q3FY20	Q3FY19
Revenue	13,000	20,377
EBIDTA	-819	2,722
PAT	-2,838	915
Cash PAT	-1,939	1,673

Revenue of overseas business stable

Standalone		Rs. Mn
	9MFY20	9MFY19
Revenue	15,763	31,082
EBIDTA	685	5,598
PAT	-2,801	1,522
Cash PAT	-1,626	2,867

Lower revenue due to liquidity tightening

Ebitda margin of 4.4% in 9M FY 20 v/s 18% in 9M FY 19

Financial Performance: 9M FY20

Consolidated	Rs. Mn
	9MFY20	9MFY19
Revenue	45,796	59,939
EBIDTA	2,680	8,213
PAT	-3,953	1,981
Cash PAT	-1,324	4,390

• Revenue drop of 23.6% on y-o-y basis
• Ebitda margin of 5.9% in 9M FY 20 v/s 13.7% in 9M FY 19

Standalone Revenue		Rs. Mn
	FY20	FY19
Hi-tech AgriInputs	2,164	-64.9%
Plastic	1,302	-72.1%
Other	58	-62.5%
Total	3,524	-67.9%

Consolidated Revenue

Rs. Mn

	Revenue	Growthy-o-y
Hi-tech AgriInputs	5,968	-41.7%
Plastic	2,136	-61.1%
Agro	4,695	14.3%
Other	201	-62.6%
Total	13000	-36.2%

Exports from India

Rs. Mn

	Q3 FY20	Growthy-o-y
Hi-tech AgriInputs	330	-58.1%
Plastic	326	27.7%
Agro	766	-18.9%
Total	1,422	-28.4%

Segment Overview: Q3 FY20

Standalone

Standalone	Rs. Mn
	Order Book Position
Hi-tech AgriInputs	19,841
Plastic	7,133
Other	19
Total	26,993

Order Book Position : 3Q FY 20

Consolidated

	Rs. Mn
	Order Book Position
Hi-tech AgriInputs	24,558
Plastic	7,390
Agro	10,675
Other	840
Total	43,462

Revenue Overview : Q3 FY20

Revenue Overview : 9M FY20

Standalone

Days	DSO Dec 31, 2019			DSO Sept 30, 2019			DSO Dec 31, 2018
	Inventory	AR	Net WC	Inventory	AR	Net WC	Inventory	AR	Net WC
Hi Tech	137	398	467	112	314	365	105	190	206
Plastic	32	169	133	29	166	150	37	103	89
Standalone Co	102	314	347	83	263	292	81	156	164

Increase in DSO is on account of reduced sale in Q3 FY 20. In absolute amounts, the receivables and inventory have reduced by Rs 1,500 million and Rs 260 million respectively in Q3 over Q2.

Consolidated

Days	DSO Dec 31, 2019			DSO Sept 30, 2019			DSO Dec 31, 2018
	Inventory	AR	NetWC	Inventory	AR	NetWC	Inventory	AR	NetWC
Hi Tech	113	196	262	100	184	237	116	128	170
Plastic	48	121	110	44	129	130	50	91	92
Agro	199	71	170	217	60	176	240	55	187
ConsolidatedCo	127	148	211	118	146	206	129	103	158

The receivables and inventory have reduced by Rs 2,440 million and Rs 660 million respectively in Q3 over Q2.

Working Capital Analysis

				Rs. Bn
	Dec 31,2019	Sep 30,2019	ChangeQoQ	Mar 31,2019
Standalone
LongTerm	7.33	7.31	0.01	7.90
ShortTerm	21.97	22.20	-0.23	8.46
Gross Debt	29.29	29.51	-0.22	16.36
Net Debt	28.26	28.92	-0.66	16.05
Consolidated
LongTerm	30.74	30.81	-0.07	31.82
ShortTerm	33.42	32.99	0.43	19.17
Gross Debt	64.16	63.81	0.36	50.99
Net Debt	62.24	62.17	0.08	49.54

• 5% of gross debt (standalone) & 50% of gross debt (consolidated) is in foreign currency as of Dec 30, 2019

No increase in debt since September 2019

Standalone Long Term Foreign Currency Loan (FCL) Repayment Schedule

Year	FY 20(3 months)	FY 21	FY 22	FY 23-25	Total
Eq. US Dollar mn	6.36	12.94	2.69	1.53	23.52*

*The Company has hedged US$ 6.07 mn of its long term foreign currency loans

Debt Position

Jain Irrigation – A snapshot

Company has 30 manufacturing plants 1963 Started our trading business in agricultural inputs and equipment Rs 88 bn Revenues in 2018-19 5.2mm Farmer lives have been touched 12,200 Associates globally Incorporated in 1986 120+ countries reached through our products 10,555+ Dealers and distributors base globally Microirrigation company in India #1 In mango processing globally #1 In tissue culture production of banana and pomegranate globally #1 In onion and vegetable dehydratio n globally #3 Manufactu rer of plastic pipes in India #1 Microirrigation company globally #2

Touching lives in more ways than one

Water Wise: More Crop Per Drop

Smart and Amrut City

Smart City: Objective is to promote cities that provide core infrastructure and give a decent quality of life to its citizens, a clean and sustainable environment and application of 'Smart' Solutions

AMRUT: Atal Mission for Rejuvenation and Urban Transformation

Food business overview

2

Onion Processing Fruit Processing Spices Business

nd largest onion dehydrator in the world Largest mango processor in the world One of the largest Spice processing facilities in India

Product Range Product Range Product Range

Jain Farm Fresh Foods Ltd. ( JFFFL) forays into "Organic Spices."

• o JFFFL, a wholly–owned subsidiary of Jain Irrigation Systems Ltd., with one of the largest spice processing facility in India has forayed into organic spices. The Company's 24000 MT spice processing facility has now been certified with the National Organic Program (NOP) for the Unites States, National Program for Organic Production (NPOP) for India and EU Organic for European Union.
• o Initial offerings comprise of turmeric powder, ginger powder, wild cardamom and going forward plans are underway to add Chili.
• o To ensure the availability of raw materials at all times, the Company has instituted a diversified sourcing mechanism with a significant focus on Sikkim, which is the first organic state in the world.

FDI in food processing sector down 31% at $ 628.24 million in 2018-19

o The FDI in the food processing sector fell to $628.24 million in 2018-19 from $904.90 million in 2017-18, falling by 31%. The food processing sector is annually seeing a growth of more than 11%. The processing levels in India remain low at 7.7% behind several economies such as China, Malaysia and US, according to the Government. Moreover India's share in global exports of processed food is only 2%.

Maharashtra pitches to bring 50% agriculture land under micro-irrigation over 5 years

o The state government has urged the Centre to allocate more funds under the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) to bring at least 50 per cent of agriculture land under micro-irrigation over the next five years. It has also urged the Centre to promote micro-irrigation to crops beyond high, waterintensive sugarcane and bananas under the 'More Crop Per Drop' scheme.