Jain Irrigation Systems Limited — Q4 FY26

Jain Irrigation Systems Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=jShMsT3bXTY Published: 1d ago

0:00 Ladies and gentlemen, good day and welcome to Jen irrigation systems Q4 and FI26 earning conference call hosted by 0:08 8 seconds Dia Choxy Finsoft Private Limited. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask 0:16 16 seconds question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:23 23 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Maher Mani. Thank you and over to you. 0:33 33 seconds Thank you Danish. Good evening everyone and welcome to Jen Irrigation System Limited earnings call to discuss the Q4 FY26 results. Today we have on call Mr. 0:44 44 seconds Ami Jen CEO and MD and Mr. Deepin Walami CFO. We must remind you that the discussion on today's call may include 0:53 53 seconds certain forward-looking statements that may involve known and unknown risk, uncertaintities, and other factors and must therefore be viewed in conjunction with the risks that the company faces. 1:04 1 minute, 4 seconds Future results, performance or achievements may differ significantly from what is expressed and implied by such forward-looking statements. 1:13 1 minute, 13 seconds Please note the results and presentation are available on the exchange and the company's website. Now I request Mr. Ani 1:20 1 minute, 20 seconds Jen to take us through the company's business outlook and financial highlights subsequent to which we will open the floor for questions. Thank you and over to you sir. 1:33 1 minute, 33 seconds Uh good evening to all the participants and the listeners uh for the call. Uh thank you for uh joining company's 1:42 1 minute, 42 seconds conference call for the fourth quarter results and overall year review. Uh so 1:49 1 minute, 49 seconds as we circulated we had a board meeting earlier today and we have circulated the results. uh you you know you might have 1:56 1 minute, 56 seconds seen uh that overall uh you know when you look at it we were able to manage 2:03 2 minutes, 3 seconds approximately a revenue of about 1,800 cr this quarter uh as the entire company 2:10 2 minutes, 10 seconds as again same period last year at about 1750 so registering about a nominal growth of about 4.3%. 2:18 2 minutes, 18 seconds uh within that the high-tech business uh which primarily means rig irrigation tissue culture grew in fact about 8%. uh 2:25 2 minutes, 25 seconds there was small amount of degrowth in plastic business because of slow quarter for the piping uh in the first quarter 2:33 2 minutes, 33 seconds and uh the impact we had uh because of very high prices of raw materials in month of March and uh agrop processing 2:41 2 minutes, 41 seconds also did about 6% growth uh during this quarter 2:47 2 minutes, 47 seconds and in terms of overall IBIDA grew about 7% so revenue grew 4% grew about 7% % uh 2:56 2 minutes, 56 seconds within hi-tech the ivida had a really good growth at about 22% compared to the same period last year uh the plastics 3:04 3 minutes, 4 seconds grew also 3.3 and but agrop processing had a negative uh evida growth for this quarter while for the whole year they 3:13 3 minutes, 13 seconds had a positive uh IA growth uh we we have been able to you know improve the margin overall margin came at 13.2% as 3:22 3 minutes, 22 seconds against 12.8% 8% uh you know across all the divisions uh within individual businesses high-tech came out at 19.8% 3:31 3 minutes, 31 seconds as against last year 17.5 so that's a substantial improvement even plastic was at little bit higher at 10.2 2 versus 9.7. 3:41 3 minutes, 41 seconds Um so you know this has been in that context and background we have been able to hold our margins uh even though 3:49 3 minutes, 49 seconds revenue growth was lower than what we were expecting or we we were anticipating uh in the quarter if I look 3:57 3 minutes, 57 seconds at the whole year now that you know we are aggregating all the four quarters uh revenue has grown for about 11% uh for 4:06 4 minutes, 6 seconds the whole year that includes uh you know the console business that is business in India, the food business, the overseas 4:13 4 minutes, 13 seconds plastic business all put together. But within that 11% you would see that the high-tech business grew more than 20%. 4:21 4 minutes, 21 seconds So that has been really heartening to see that the business which is most profitable uh you know grew uh at the 4:28 4 minutes, 28 seconds best rate. Uh the plastics grew only at 2.4 and the food managed to cross 2,000 cr revenue uh by growing uh 9%. 4:38 4 minutes, 38 seconds uh so again overall positive revenue growth and especially in hightech uh it 4:45 4 minutes, 45 seconds was uh 20%. So that offers wealth uh going forward u in terms of IBI while 4:53 4 minutes, 53 seconds revenue growth for high-tech was about 20% IBIDA for the whole year grew to 26%. 4:59 4 minutes, 59 seconds We had a negative growth uh in plastics eida because revenue was uh also not did 5:06 5 minutes, 6 seconds not grow and food managed about 9% growth in IRA compared to the last year same time same time same period uh in 5:13 5 minutes, 13 seconds line with the its revenue expansion but if you look at the kind of a India side 5:20 5 minutes, 20 seconds of the food business did very well uh during the whole year uh while we had some challenges in our European and US 5:28 5 minutes, 28 seconds business uh those are being addressed uh and I think uh we expect uh current 5:36 5 minutes, 36 seconds fiscal year that is 8527 uh they will not remain so next year looks uh then quite good for the uh food 5:44 5 minutes, 44 seconds business uh in totality uh in general in terms of the market uh 5:52 5 minutes, 52 seconds what we have seen that the pricing shocks which we saw in March where Some of our polymer you know we use PVC and 6:01 6 minutes, 1 second polythylene for piping business and linear low density polythine in trip irrigation business and we saw that 6:10 6 minutes, 10 seconds between 28th February to you know sometimes in 25th of March uh prices had gone up substantially 6:19 6 minutes, 19 seconds uh you know resulting into almost at one point there was more than 50% increase in the raw metal prices within a space 6:27 6 minutes, 27 seconds of for about 20 days and uh on politian side it was in fact 60% uh increase and 6:35 6 minutes, 35 seconds so that was a kind of a shock to the system. This was unprecedented. 6:40 6 minutes, 40 seconds Not seen anything like that even during COVID period. 6:44 6 minutes, 44 seconds And in fact over last 40 years this was a in such a short period such an amount of increase which took place 6:53 6 minutes, 53 seconds and since then you know if I talk about uh late April early May PVC prices have 7:00 7 minutes come down because part of PVC gets supplied from China which is coal based 7:06 7 minutes, 6 seconds and that comes at a lower cost. uh and it is not because it is coal based it does not have to be a derivative of the 7:14 7 minutes, 14 seconds crude well polyerine HDP or LDP continues to remain still quite high uh because uh 7:23 7 minutes, 23 seconds it is direct derivative of the group so those prices are about 40% up they they had gone up to 60% up but they are now 7:31 7 minutes, 31 seconds at around 40% level uh and PVC is down to about 10% compared to where it was in February So we have seen since these 7:41 7 minutes, 41 seconds prices have come down uh you know we have seen uh demand for PVC pipe already 7:48 7 minutes, 48 seconds come back and uh you know things while you know March and April you know we lost some business due to uncertainty in 7:56 7 minutes, 56 seconds the market customers decide to postpone their demand for their orders especially the farmers and uh but PVC has come back 8:05 8 minutes, 5 seconds and we expect that over next few months as this is expected also to be uh you know monsoon is expected to be lower 8:14 8 minutes, 14 seconds than normal. Uh we expect uh stronger demand for water management products from farmers. So we expect next few 8:21 8 minutes, 21 seconds months to be better unless there is another big price shock which we one cannot predict and one is not aware. But 8:28 8 minutes, 28 seconds as things stand I think uh what we saw the worse between you know first three weeks of March uh and uh through April 8:38 8 minutes, 38 seconds uh things are have stabilized and business is coming back to normal. So the second half of this quarter uh looks 8:46 8 minutes, 46 seconds better than the first half and uh then you know onwards July onwards also uh 8:52 8 minutes, 52 seconds should be better is uh our overall sense uh in in terms of where we are going 9:01 9 minutes, 1 second in our food business. uh we had uh planned uh also uh you know new uh business 9:10 9 minutes, 10 seconds where we had talked about that we getting into beverage manufacturing and uh so I'm happy to report that in 9:18 9 minutes, 18 seconds the quarter uh the two beverage lines uh started one for juice and uh one for CSG 9:27 9 minutes, 27 seconds and uh there is a discussion ongoing to also put additional three more lines uh during May 527 9:36 9 minutes, 36 seconds and uh we are looking forward to uh closure of those discussions soon and then uh move 9:44 9 minutes, 44 seconds forward with that additional uh investment. Uh overall I think we had a 9:51 9 minutes, 51 seconds small amount of revenue because of the initial trials etc in late February and early March but we did some amount of uh 10:00 10 minutes business already in March. So we expect current year uh to generate again the revenue and the margins uh into that new 10:08 10 minutes, 8 seconds side of the business. The other business which we're working uh on a collaboration with a Japanese company uh it's about tomato processing uh that 10:18 10 minutes, 18 seconds plant would start uh sometimes I think January uh that is the next mango season uh sorry tomato season uh when that uh comes through. 10:29 10 minutes, 29 seconds Uh as we also speak right now uh you know we are currently processing uh onions since January and that season has 10:37 10 minutes, 37 seconds gone reasonably okay for us. So that augers well for the next year in terms of improving sales of onion etc dried 10:46 10 minutes, 46 seconds onion and the mango season uh is just starting uh as we speak and uh you know 10:53 10 minutes, 53 seconds this year onwards 2728 onwards we also expect that once all the rules are notified under India UFDA you know 11:02 11 minutes, 2 seconds earlier we used to pay 10% duty on onions uh while being importing uh now the duties are going to be zero. Uh so 11:11 11 minutes, 11 seconds that that should be good uh to create demand for those type of products for up uh into European markets and again uh 11:21 11 minutes, 21 seconds that should help uh overall our uh food business 11:29 11 minutes, 29 seconds in overall scene. You know we we we are cautious right now right because of this 11:36 11 minutes, 36 seconds uh unpredictable scenario related to major raw materials which we have uh in terms of the plastics which we use in 11:44 11 minutes, 44 seconds driven pipe business. Uh but you know overall as things stabilize uh I think uh revenues will come back 11:52 11 minutes, 52 seconds and kick in again. And in terms of the uh food business as I said there are two three things which are happening which 12:00 12 minutes are positive for the food for the uh next year. Uh one of the other thing which happened uh during this period 12:08 12 minutes, 8 seconds that the lower demand was not just linked to the higher raw metal prices which was one of the important factors but because of this war type scenario. 12:19 12 minutes, 19 seconds Some of the agriculture produce which farmers sell like things like banana which goes into export markets banana, onion, grapes and so on which are our 12:27 12 minutes, 27 seconds primary customers as farmers. uh you know due to this whole war type scenario the the exports went down. So the price 12:35 12 minutes, 35 seconds they were getting also went down and which was also a dampening reason for them at given point of time but from 12:42 12 minutes, 42 seconds what we hear from the market things have stabilized even on that front now and farmer are getting better prices for their produce now. So that should help 12:51 12 minutes, 51 seconds them uh you know to make uh those decision the purchase decision uh they need to make 12:59 12 minutes, 59 seconds in terms of uh you know coming to financials. Now I I think if you look at the overall year that whatever revenue 13:08 13 minutes, 8 seconds and the IBIDA we generated uh we were able to convert substantial amount of EBIDA into free cash flow. uh you know 13:17 13 minutes, 17 seconds when I look at uh overall performance uh of the company and that's important to know because that is what our really 13:25 13 minutes, 25 seconds focus is uh going forward uh next year also that uh almost if you look at for 13:32 13 minutes, 32 seconds the whole A576 whatever eBida we generated uh almost about 76% was gen you know operating 13:41 13 minutes, 41 seconds cash flow post working capital change uh was created in that to in north of about 13:48 13 minutes, 48 seconds 600 crores and the idea in the current fiscal FI27 is to take this amount uh to four 13:56 13 minutes, 56 seconds figures by recovering the old uh government uh receivables and project 14:03 14 minutes, 3 seconds receivables. So there was some moment in this particular quarter where some 80 cr were reduced in January to March from 14:11 14 minutes, 11 seconds the government project receiver and again in April we also received 30 crores and we expect you know FY27 to be 14:18 14 minutes, 18 seconds a year where you know substantial amount will come down so that you know from FY 28 onwards we don't have to discuss 14:27 14 minutes, 27 seconds about this issue because that would be uh behind us uh in totality. 14:35 14 minutes, 35 seconds Uh so our focus has remained on cash flow and uh the fact that we could generate 600 cr res of operating cash 14:42 14 minutes, 42 seconds flow after working everything always good and we also focused on working 14:49 14 minutes, 49 seconds cycle and that working cycle has been almost about by 15 days uh in total 14:58 14 minutes, 58 seconds uh across different businesses uh despite all the volatility and the changes which have been there in marketplace including what happened uh in the March. 15:09 15 minutes, 9 seconds So overall when you look at you know business level business level profitability 15:17 15 minutes, 17 seconds uh the ability to collect cash to you know honor the obligation uh 27 is important because uh while we last four 15:25 15 minutes, 25 seconds years we have been repaying all our obligations on the date and on time. uh there are additional obligations in the current year that is uh in FY27 15:34 15 minutes, 34 seconds uh those are due in September and March uh and we feel that uh company would be able to generate uh adequate internal 15:44 15 minutes, 44 seconds acroals uh to be able to uh take care uh of uh that matter and um by March almost 15:52 15 minutes, 52 seconds 98% of the old debt which we had uh which was interesting debt in terms of ter loans and FIT 15:59 15 minutes, 59 seconds etc. That has all been fully repaid. Uh about 1 or 2% remains which is on ongoing basis and uh now this year we 16:08 16 minutes, 8 seconds repay uh 0% debt the incides which were carrying in uh our books. 16:15 16 minutes, 15 seconds Uh so that's where we are. So all in all you know some some good news and some uh some difficult times we have gone 16:23 16 minutes, 23 seconds through in March and April but uh you know the I think structurally uh speaking uh business is in good place 16:32 16 minutes, 32 seconds our ability to be cost competitive and make good margins is there you know and at least on drip irrigation business 16:40 16 minutes, 40 seconds etc. I think our margins are better than most of the companies because you know the fact that we sell system and we sell 16:49 16 minutes, 49 seconds crop solutions rather than merely plastic products and that is what is uh helping us uh as a company food is 16:57 16 minutes, 57 seconds moving next year. I think domestically food was already very strong this year. 17:02 17 minutes, 2 seconds Uh next year also looks good for domestic business and uh with the addition of the beverage business uh 17:08 17 minutes, 8 seconds food should do very well and uh the hit we have taken into couple of overseas businesses and food side uh should also not be there in FI27. 17:20 17 minutes, 20 seconds So overall food should be okay. The plastic business uh you know more especially the piping part which is 17:27 17 minutes, 27 seconds domestic business uh as things have stabilized polymer prices now PVC especially has come down 17:35 17 minutes, 35 seconds to reasonable level uh should you know create now sustained stable business environment plastic sheet business which 17:43 17 minutes, 43 seconds is overseas uh is already doing uh reasonably well. So all in all despite some of these headwinds uh we think uh 17:52 17 minutes, 52 seconds you know companies should do uh better in FI27 compared to 26 on all parameters 17:59 17 minutes, 59 seconds uh by and large you know the revenue the margins the cash flow all three parameters and balance sheet should definitely become far better than what 18:08 18 minutes, 8 seconds it is today with large chunk of uh repayment. uh that's what our uh focus 18:14 18 minutes, 14 seconds is and uh we think uh we need to prepare ourselves to face some of these 18:21 18 minutes, 21 seconds uncertaintity and challenges mitigate some of these risks uh which are out there. So one has to be a little bit cautious right you you can't go say ho 18:30 18 minutes, 30 seconds I'm going to do things in a very different way. Uh another factor the business which grew last year was also 18:37 18 minutes, 37 seconds the you know as a part of the high-tech division uh has been the solar agri pump that business grew nicely and uh we 18:44 18 minutes, 44 seconds expect with also additional government initiative a solar agree business should grow also in 27. So there are some you 18:53 18 minutes, 53 seconds know places where I see definite growth opportunity as I said solar pump will grow drip irrigation you know especially 19:02 19 minutes, 2 seconds into the markets where farmer buy directly from us via dealers uh should continue to grow because it's a good solution for farmers to improve 19:10 19 minutes, 10 seconds productivity and prosperity and the food will do well. Plastic sheet overseas is already doing well. pipe which did not 19:18 19 minutes, 18 seconds grow this year uh we expect to grow next year. Uh in terms of 19:25 19 minutes, 25 seconds different businesses I think the in the current year uh the domestic business grew about 12% exports were lower uh led 19:35 19 minutes, 35 seconds by almost 10% 10 11%. And the retail business within that grew 13%. So you know our target is that the retail business should grow more than 15%. 19:45 19 minutes, 45 seconds Right. And that was in the current quarter also in the whole year but we ended up at 13 because lack of sales in 19:52 19 minutes, 52 seconds March uh because of this shock but I think uh going forward our focus would remain that the domestic and the retail 20:00 20 minutes business should maintain that 15% uh plus uh growth and export you know we 20:07 20 minutes, 7 seconds have to be watchful this year because of whole geopolitical uh scenario the tariff issues you know 20:14 20 minutes, 14 seconds the the sometimes you can't ship all all kinds of issues but even there you know this year I think we we clocked exports 20:22 20 minutes, 22 seconds of last year 455 crores from the earlier 500 crores so that that was a 10% lo uh but now with the uh you know 20:31 20 minutes, 31 seconds depreciation of the rupee and rupee level some of our product especially on the food side exports could become more 20:38 20 minutes, 38 seconds competitive and that would uh help us so I think this is where we are uh so we are cautious 20:46 20 minutes, 46 seconds we remain focused. uh 27 is an important year and but I think overall uh we are 20:53 20 minutes, 53 seconds in good way right for the whole year right again our business quarter to quarter keeps moving but for the whole 21:00 21 minutes years uh we should uh do uh well and um 21:07 21 minutes, 7 seconds also uh one last item um on the pat uh that you know the reported pat being 21:14 21 minutes, 14 seconds negative was also the fact and that is covered in notes was that we have opted this year uh to go for the new regime on 21:24 21 minutes, 24 seconds the taxes at 25%. Uh earlier regime was 34% and because of the earlier accumulated losses we had created defer 21:32 21 minutes, 32 seconds tax assets uh based on 34% future tax rate. Now the fact that we're moving to the new regime of 25%. 21:40 21 minutes, 40 seconds uh that means we needed to unwind some of those earlier deferred tax taxes which were created uh as an asset based 21:47 21 minutes, 47 seconds on 34%. And that impact has already been given. It's a non-cash impact. uh and that was that got necessiated because of 21:56 21 minutes, 56 seconds the government uh circular in February which said that if you decide not to move then you could lose all the MAT credit and we had Matt credit of more 22:05 22 minutes, 5 seconds than 80 crores uh and therefore that decision we have taken uh it's a one time hit and for the whole year number 22:13 22 minutes, 13 seconds there was also one time change due to the labor code again that was a non-cash item and uh usually in our PAT number 22:21 22 minutes, 21 seconds also some of the unwinding of these 0% NCDS also comes through that was another 80 crores uh which was also uh is a 22:29 22 minutes, 29 seconds non-cash item so when you see reported pack and if you add back some of these uh 22:36 22 minutes, 36 seconds numbers uh the existed pat comes out to be uh quite positive uh for the company of course uh we need to further do it 22:44 22 minutes, 44 seconds and further improve it and I think u you know that's where our efforts are. So I would like to thank everybody for being 22:52 22 minutes, 52 seconds patient and listening through almost you know half an hour of you know all the review of the business of where we stand 22:59 22 minutes, 59 seconds how 26 went and what are we expecting in 27 and as I said 27 being uh somewhat uh 23:07 23 minutes, 7 seconds you know uncertain year because of all these situations uh we'll continue we monitor what is happening uh we are 23:14 23 minutes, 14 seconds hands on uh in terms of where we need to go and where necessary you know we are employing within our business and within 23:22 23 minutes, 22 seconds our data artificial intelligence to you know improve the efficiency of business improve training of people. How do we 23:29 23 minutes, 29 seconds reach out to the dealers? How do we give more crop solutions to the farmer? So lot of work is going on to create a more robust platform than we had in the past. 23:39 23 minutes, 39 seconds Thank you and uh we will be very happy to take any questions uh you might have. Thank you again. Thank you sir for your presentation. 23:48 23 minutes, 48 seconds Ladies and gentlemen, we will now begin with the question and answer session. 23:51 23 minutes, 51 seconds Anyone who wishes to ask a question may press star N1 on the touchstone telephone. If you wish to remove yourself from the question queue, you 23:59 23 minutes, 59 seconds may press star N2. Participants are request to use handsets while asking a question. 24:05 24 minutes, 5 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 24:20 24 minutes, 20 seconds The first question come from the line of Prrenit from Samatwa Investments. Please go ahead. 24:27 24 minutes, 27 seconds Uh I hi management thank you for the opportunity. So we just want uh wanted to understand in terms of the debt repayment I understand that you 24:35 24 minutes, 35 seconds mentioned with cash flow may be able to service it but if you see a standalone business where most of our entities are we don't have that much of cash flow so 24:44 24 minutes, 44 seconds could you explain on how are you planning on servicing the data especially in previously the management has indicated that you might shift to some portion of it and there might be a 24:53 24 minutes, 53 seconds fund raise there were many options given but it was always vague on how are we planning on specifically paying this 25:00 25 minutes liability. So could the management explain what's the strategy of whether there be restructuring of debt or what is going to go? 25:09 25 minutes, 9 seconds Yeah, I think uh that's a good question. 25:20 25 minutes, 20 seconds the you know standalone business uh which we have uh does uh generate certain amount of cash flow 25:30 25 minutes, 30 seconds and even the last year I think uh in 2526 we generated net cash from operation 50 cr post working capital 25:38 25 minutes, 38 seconds change and part of was the increase in the you know receivables etc. 25:47 25 minutes, 47 seconds the fact that we would expect to cover uh you know the these receivables in fact should go down about 450 crores 25:55 25 minutes, 55 seconds from the government. With all that calculation we expecting the 350 cr uh 26:02 26 minutes, 2 seconds to grow to almost about uh 750 800 cr uh is our anticipation. So while that is our clear objective that from internal 26:10 26 minutes, 10 seconds acros of standalone business is what we should be able to uh repay uh majority of these entities 90 crores. In addition 26:18 26 minutes, 18 seconds uh you know we are expecting in current year in standalone business uh about 150 crores uh of the government benefits. 26:27 26 minutes, 27 seconds This is not linked to the projects or these are not subsiding. These are special benefits which have been good which will be released uh by the government in the current year and that 26:35 26 minutes, 35 seconds amount will be also available uh to pay for uh this uh debt. Uh in terms of the 26:43 26 minutes, 43 seconds backup options right if things are delayed on the government projects or is uh the backup options are always available about refinancing backup option about raising of the equity etc. 26:55 26 minutes, 55 seconds uh those are available uh so but you know we feel fairly confident that we should be able to do through internal 27:03 27 minutes, 3 seconds approvals and I would like to state that look between 23 and 26 time restructuring so since 22 in last four 27:11 27 minutes, 11 seconds years we also repaid 1300 crores total uh to the banks and that was possible uh and it became possible so companies are 27:19 27 minutes, 19 seconds stronger today than let's say it was three or four years ago so we feel okay and good that we can do 27:26 27 minutes, 26 seconds this. Uh in terms of backup option, you know, I think we are exploring everything including 27:33 27 minutes, 33 seconds refinancing if required and this scenario of what has happened in March and April uh necessarily some of the 27:40 27 minutes, 40 seconds additional backups one must do because you know things are uncertain and we are exploring those and I think sometimes in 27:48 27 minutes, 48 seconds July when we speak uh we should have more clarity on them. Now as I also explained uh this date is smaller amount 27:56 27 minutes, 56 seconds of debt is due in September and majority amount of debt is due in March. So you know it's 10 months away I think we have 28:04 28 minutes, 4 seconds necessary very resolved to ensure that it will properly understood sir but like uh we have 28:11 28 minutes, 11 seconds always had like many of these backup options in terms of asset sales and government receivables and all of that in the past also the prepay or whatever 28:18 28 minutes, 18 seconds it is but we have not most of them didn't work out so how fairly confident are you in terms of getting the government receivables let it be the benefit or the project receivables and 28:28 28 minutes, 28 seconds like in terms of everything was delayed I understand the management is doing everything from where they are but it is and it's not very far apart it's 10 28:36 28 minutes, 36 seconds months is not that long and the next payment is in September that is also not too long with existing situation it looks like still to be difficult and we 28:44 28 minutes, 44 seconds are also doing a lot of capex in the food business where it has its own commitments so overall this is how because it got delayed so far I'm just 28:51 28 minutes, 51 seconds curious on where how confident is the management in terms of doing it because neither we deal it with the IPO in terms of liquidity and we have now and land 29:00 29 minutes also were delayed. So is there any other backup option of the restructuring as already set because getting finance in in this market also could be difficult right? 29:08 29 minutes, 8 seconds No sale actually about the land is also in you know we kind of signed the MOU etc. Uh it's based in Tamil Nadu there 29:17 29 minutes, 17 seconds were recent elections there so it is expected to be closed this month next month. uh so when I overall right so also you talked about government 29:26 29 minutes, 26 seconds projects the scenario is that uh in terms of the government projects now you know I think four major projects have 29:35 29 minutes, 35 seconds been completed so funds have to come earlier you know there was still last milestone was not done and so on so forth that's in place the the government 29:43 29 minutes, 43 seconds benefit I talked about uh we got the approvals only in July August so payment has to only take place this year it could not have been uh done earlier 29:51 29 minutes, 51 seconds here. So you know when I'm saying something uh it's based on you know being conservative uh and also doing 29:58 29 minutes, 58 seconds thorough analysis. Uh so and as I said September part we we already know how that would happen. The March part there 30:06 30 minutes, 6 seconds is some more work needs to be done. I think as I said we have 10 months and we are very confident that this will be done. No issues. 30:15 30 minutes, 15 seconds Thank you ladies and gentlemen. In order to ensure that the management will be able to address all the question from the 30:22 30 minutes, 22 seconds participant, we request you to kindly limit your question to one question per participant. If you have a follow-up question, please rejoin the queue. Thank you. 30:32 30 minutes, 32 seconds Our next question come from the line of Sanjay Kohli from Gold Stone Capital. Please go ahead. 30:38 30 minutes, 38 seconds Uh thank you for the opportunity. Um again as a followup to the previous uh 30:45 30 minutes, 45 seconds speaker's question about the death management there was a recent uh report by Ikra on 30:53 30 minutes, 53 seconds uh the ratings uh uh you know update which they provided and in that is 31:00 31 minutes mentioned a very advanced level of talks about a uh sale which should go which 31:07 31 minutes, 7 seconds should preise sometimes this on where are we with that sir? 31:15 31 minutes, 15 seconds Yeah. So I think the sale of the assets uh as I said uh it is happening in Tamil Nadu. Uh we already signed the necessary 31:24 31 minutes, 24 seconds MOU or whatever else. So it should happen over you know next couple of weeks. Uh so that's that's in place. So 31:32 31 minutes, 32 seconds that's what I'm saying. some of these things are happening now and you know we feel fairly confident that that's not an issue. 31:40 31 minutes, 40 seconds Okay. So that's wonderful news because this will be a very nice near-term catalyst uh for uh investors to be also looking at the you know valuation and things. 31:51 31 minutes, 51 seconds Sure. 31:52 31 minutes, 52 seconds The other Yeah. And uh what progress have we made or uh in the UK business 31:59 31 minutes, 59 seconds and in the bottling plant? And since we made the announce uh what sort of uh you 32:07 32 minutes, 7 seconds know from tax generation from operation what have we pumped into these businesses so far the amounts 32:17 32 minutes, 17 seconds if you can get a handle on the basically on the capital work in progress or the investment collected individually and collectively. 32:27 32 minutes, 27 seconds No. So the bottling beverage business we have invested approximately 140 crores uh over last couple of quarters December 32:35 32 minutes, 35 seconds and March quarter and uh the first project is already uh online. Uh it's working uh we do not have to put any 32:43 32 minutes, 43 seconds working capital because that's how uh the business works uh and business has started functioning. uh in terms of uh 32:51 32 minutes, 51 seconds the UK business which was a different question uh where you know we have grown this year from I think 60 million pound 32:59 32 minutes, 59 seconds to 68 million pounds uh on the food side uh but there were some challenges related to cost because of the growth 33:06 33 minutes, 6 seconds which we were achieving there were additional cost attached to it and those cost I think 33:13 33 minutes, 13 seconds will not be there in FI27 so the you know I think uh we should get back to higher level of ebida into that 33:21 33 minutes, 21 seconds business but overall revenues are protected good you know in a market which is not growing much uh the fact that we could grow about 12% uh was 33:30 33 minutes, 30 seconds quite nice so as I said uh you know if you look at overall business the food business uh the seasons for onion and 33:38 33 minutes, 38 seconds mango look good uh with rupee depreciation uh that should further help the beverage is a new project which has 33:46 33 minutes, 46 seconds already started uh so that as well and the negative uh you know which we had in 33:54 33 minutes, 54 seconds UK especially UK market and partly US market uh should not be there in FI27. 34:00 34 minutes So overall food business should come back very quite strong though in the current year food business did better than earlier in terms of revenue and eid 34:08 34 minutes, 8 seconds both uh they grew for 9%. But next year should be better uh in both and as I said because of the current 34:16 34 minutes, 16 seconds uncertaintity you know I don't want to talk of any numbers where we'll end up uh because everything is disturbed one way or the other but overall I 34:24 34 minutes, 24 seconds directionally I think it is quite positive. 34:30 34 minutes, 30 seconds Thank you participant has left the queue. Our next question comes from the line of Sumit Kumar from Megat Securities. Please go ahead. 34:44 34 minutes, 44 seconds Kumar you may please proceed ahead with the question. Hello am I audible? 34:52 34 minutes, 52 seconds Yes you are now. 34:53 34 minutes, 53 seconds Hello. Uh uh sir uh my one first question is regarding that. So lots of 35:00 35 minutes hard work is going on and have been done in the past but still we are on path. uh 35:07 35 minutes, 7 seconds we are not uh on positive side. So uh till what side uh can you give me uh some uh time that from this quarter uh 35:16 35 minutes, 16 seconds we are expected to be quite positive. 35:22 35 minutes, 22 seconds Okay that's it seems like we are working 35:30 35 minutes, 30 seconds of banks. uh uh whatever the audit is major chunk is going for uh financing the debt and debt is increasing rather 35:39 35 minutes, 39 seconds than decreasing it is increasing on consolidated basis. So but can you give me uh some timeline that from that we would be uh fast uh past positive? 35:51 35 minutes, 51 seconds So I think uh you know that's a good question uh for FI27 right our plan 35:58 35 minutes, 58 seconds right now is to be pack positive but I want to just bring attention to one part right uh that's a pain failed by us also 36:06 36 minutes, 6 seconds right that uh you know that whether you are unpaid employees of the banks after doing all the work uh but when you look 36:13 36 minutes, 13 seconds at the pad for example for the entire FI20 the pad is at minus 40 crores but within that 40 crores These are you know 36:22 36 minutes, 22 seconds one-time issues plus the unwinding of these NCDs which is a non-cash item and not linked to the current year 36:29 36 minutes, 29 seconds performance. If you adjust that adjusted path and which we have given in investor presentation also on slide 9 is about 133 crores which was 97 crores earlier. 36:41 36 minutes, 41 seconds So there is a improvement in the pack which we have earned on a cash basis. uh but uh you know on a pat reported basis 36:49 36 minutes, 49 seconds it is negative but I think the whole idea or thought process from next year onwards right is that you must earn the pat even post any adjustment if any to 36:58 36 minutes, 58 seconds be on posit you know you have a positive EPS so that's what we are striving for and it should happen from next Yeah. 37:16 37 minutes, 16 seconds Thank you. Uh Mr. Kumar, you may rejoin the queue if you have a question. 37:21 37 minutes, 21 seconds Reminded to all the participant, please limit a question to one question per participant. 37:26 37 minutes, 26 seconds Our next question comes from the line of Parak Khare from PK Investments. Please go ahead. 37:32 37 minutes, 32 seconds Good evening, sir. Thank you for the opportunity. Am I audible? Yeah. Yeah. Yeah. Please go ahead. 37:37 37 minutes, 37 seconds Okay. Yeah. So, thank you for the opportunity. I uh joined slightly late. I missed some of your opening remarks. 37:44 37 minutes, 44 seconds Uh uh how are we doing in terms of uh bottling plant uh uh progress and uh how 37:51 37 minutes, 51 seconds much uh we expect and uh if you can just uh tell with whom which uh we are doing the partnership and what kind of uh you 38:00 38 minutes know revenue we expect. uh uh from the bottling plant lines because this being the summer season a peak time. So what's 38:09 38 minutes, 9 seconds your estimate for Q1 from the bottling plant uh lines? 38:14 38 minutes, 14 seconds So I think uh the you know the two lines which we set up uh have already started 38:21 38 minutes, 21 seconds working uh part of February and March but of course there is the initial period trials and all of that those have 38:28 38 minutes, 28 seconds happened and we already had uh I think about uh 27 28 crore revenue uh blocked 38:36 38 minutes, 36 seconds before end of March. uh you know I can't give you the details uh of exactly what is happening now but the overall season 38:43 38 minutes, 43 seconds is going well uh we are running both the lines quite well right now as we speak and rest of the season goes and all of 38:51 38 minutes, 51 seconds that uh the next year revenue should be good uh for both of these lines and uh there is a discussion that we should you 39:00 39 minutes know do uh additional three more lines I think uh by uh you know investment ment in December, 39:08 39 minutes, 8 seconds January, but most of that revenue will come, some of it will come in the fourth quarter, but most of the revenue for the additional C line should come into the 39:17 39 minutes, 17 seconds uh next fiscal year. So that's where we are. It's it looks very positive and uh you know we think this is going to be very good for the overall food business. 39:29 39 minutes, 29 seconds Okay. And are we getting closer in terms of doing the IPO for the full division or we still some distance away? 39:36 39 minutes, 36 seconds generally you have some distance away because of you know also our merchant bankers tell us that you know market right now you know has difficulties and 39:45 39 minutes, 45 seconds smaller issues especially larger difficulties you know if you have a very big issue then it's a different story so 39:53 39 minutes, 53 seconds that is something you know I think we need to continue to look at market and based on the advice from merchant bankers investment bankers who look at 40:00 40 minutes it but uh I don't see that immediately happening at least not in the first uh we will see how things change or some 40:09 40 minutes, 9 seconds of these uncertainties go away in the second round. 40:13 40 minutes, 13 seconds Okay sir, thank you for the opportunity and all the best for the bus season ahead. Thank you. Thank you. Thank you. 40:21 40 minutes, 21 seconds Our next question comes from the line of Ravi Kumar from Vadwa. Please go ahead. 40:26 40 minutes, 26 seconds Yeah, hi. Thanks for the opportunity. Um I just want the the market rumors that 40:34 40 minutes, 34 seconds uh the beverage partnership and the tomato puri partnership is with Reliance Consumer Packs and Kagome. Would 40:42 40 minutes, 42 seconds management be able to confirm or deny this? 40:46 40 minutes, 46 seconds No, we don't want to confirm or deny. Uh you know in a sense that Kagome is a a global international player. Uh and we 40:54 40 minutes, 54 seconds are working with them. uh they have been our customers for tomato pury earlier and we are working with them uh to you 41:01 41 minutes, 1 second know increase uh uh you know what you call uh partnership more uh also we are 41:08 41 minutes, 8 seconds definitely working uh with Reliance consumer they are also our customers and we are doing more things with them as we 41:16 41 minutes, 16 seconds do also you know for example Coca-Cola has been our customers for 15 20 years we work with Nestle uni liver all 41:23 41 minutes, 23 seconds different types of people you know the global food companies, Indian companies uh and again I think uh as things evolve 41:33 41 minutes, 33 seconds you know we we would be discussing more details out there uh but things are moving in positive direction there is a 41:40 41 minutes, 40 seconds very strong undercurrent of the opportunity which is out there uh on the beverages on overall food business 41:48 41 minutes, 48 seconds okay just just a followup not not a follow-up question uh sir when February 41:55 41 minutes, 55 seconds 4th uh when we had our results uh um for the Q3 I mean at least at that point of time we 42:03 42 minutes, 3 seconds were looking at overall YI 15% that would mean PR in Q4 we are almost short 42:11 42 minutes, 11 seconds by in revenue we are short by around 200 to 250 crores uh I understand you gave u 42:18 42 minutes, 18 seconds details would you be just be able to unbox this 200 250 by various this uh uh 42:25 42 minutes, 25 seconds segment where did we lose and just um link to that I mean fifth end is when this whole uncertaintity started so the 42:34 42 minutes, 34 seconds March was the troubled one I can understand we would have had a margin impact because of the raw material price increase uh how did it impact the 42:44 42 minutes, 44 seconds revenue um part if you can just I'm sure there must be reasons if you can just give us a little bit more detail on that 42:52 42 minutes, 52 seconds yeah you know I I think see uh usually uh if you think the drip and pipe which 42:59 42 minutes, 59 seconds we sell to the farmers uh you know the first crop the curry crop comes through January right January early February uh 43:07 43 minutes, 7 seconds then the farmer fields remain open so our season real season starts in March then March April May June before the 43:15 43 minutes, 15 seconds monsoon we sell lot these four months and then monsoon there is a lean season again July August September and then uh post the monsoon again business picks up 43:24 43 minutes, 24 seconds that's the nature of the business and when early February when we spoke right uh we were anticipating because of the 43:31 43 minutes, 31 seconds earlier good mansun a very strong season happening through March onwards and uh that is when you know this war stuck and 43:40 43 minutes, 40 seconds I have wised the details right in first 15 days the prices of PVC were up by I think 30% prices of polyline went up by 43:47 43 minutes, 47 seconds 30 35%. which are the raw material related to PVC entry business which is what kicks in that time and the farmers decided to postpone uh their purchases 43:56 43 minutes, 56 seconds and they got impacted also because of the lower produce prices for themselves and that is what so the entire reduction 44:03 44 minutes, 3 seconds for 200 250 cr uh is linked to uh this pricing shock in March otherwise our 44:11 44 minutes, 11 seconds overall revenue for fourth quarter should have been you know for standalone which was about 1,000 was about uh 44:19 44 minutes, 19 seconds should have been about more than 1200 uh to 1250 in that region. So uh and but 44:27 44 minutes, 27 seconds despite that if you see overall margins uh have remained same. So you know 44:34 44 minutes, 34 seconds overall IA for the domestic standalone business for the fourth quarter is higher than the same period last year. 44:41 44 minutes, 41 seconds So imagine a scenario if we had done 200 250 IDA would have been higher by about 25 cr at least uh you know 44:50 44 minutes, 50 seconds exactly uh so but for March whatever we have already had in yeah 44:58 44 minutes, 58 seconds linked question yeah yeah so I think yeah I would answer the question I I 45:05 45 minutes, 5 seconds heard you that you know there is a of course there is a inventory so question is uh 45:13 45 minutes, 13 seconds the farmers postpone in general the purchase decision because when the raw material prices you know you average out 45:21 45 minutes, 21 seconds the pricing right when you're buying raw mater so you always average your raw materal 45:29 45 minutes, 29 seconds price and your finished goods prices and so that's the industry practice and that's what we did also and uh partly as 45:36 45 minutes, 36 seconds I said the farmer postponed decisions to purchase also was not just due to this price shock but the fact that end 45:44 45 minutes, 44 seconds produce prices for them went down uh because the exports of some of these agreeant food commodities also uh went down at the same time uh because of this 45:52 45 minutes, 52 seconds shock so that is the reason and that's why we fell short uh because we we were planned and ready but as I said things 46:02 46 minutes, 2 seconds have started coming back now what has gone is gone uh and we still manage reasonably good level of epida for the 46:09 46 minutes, 9 seconds over here and uh for and a growth uh for the this quarter also but it could have been uh much better. So I think we can move forward to the next question. 46:21 46 minutes, 21 seconds Thank you. 46:24 46 minutes, 24 seconds Thank you. Next question comes from the line of Ankit Bansil from AB Private India. Please go ahead. Hello. 46:32 46 minutes, 32 seconds Yeah, please. Uh sir sir how are you looking at the current scenario like glo 46:40 46 minutes, 40 seconds with global environment with domestic environment how are you positioning yourself as a company which which has been coming from the last struggling 46:49 46 minutes, 49 seconds four years how you seeing your businesses because you are being in a lot of businesses 46:56 46 minutes, 56 seconds my question mainly is that why not focus on the main part of the business like food beverages your pipe business is not 47:05 47 minutes, 5 seconds doing I think so in North India I have not seen any presence of your company but what are your comments on that? 47:14 47 minutes, 14 seconds Yeah, I think see the company has been configured uh to operate across agree value chain. So just to quickly refresh 47:22 47 minutes, 22 seconds everybody, we have high-tech division where we provide to farmers the drip irrigation, the pipe which goes along with the drip irrigation and also uh the tissue culture, the planting material. 47:33 47 minutes, 33 seconds Then uh we also buy from farmers what they grow and we process the fruits, make the pulp and now the beverages. So we are across the agree value chain, 47:42 47 minutes, 42 seconds right? We can't pick and choose. That's how company is structured and configured. Uh but uh your question is valid that uh that how much do we uh 47:52 47 minutes, 52 seconds sell in north. So our sales for the piping business are far more in western and southern India but they are growing 47:59 47 minutes, 59 seconds in north. I think because our base is lower in north the percentage growth in fact is higher now. And we have a 48:06 48 minutes, 6 seconds manufacturing plant in Alwur near Delhi and within Rajasthan and we are adding capacity into that to grow more into north. We are also adding more dealers. 48:17 48 minutes, 17 seconds So I think the situation that our brand is not visible in not would change over next I think 12 to 18 month period. But 48:24 48 minutes, 24 seconds all in all the the pipes are linked to irrigation uh they're linked to the farmer. So the this is a consolidated offering and that is unique point right. 48:33 48 minutes, 33 seconds Yeah, you mentioned that we have struggled uh for four years but you know within this period we also repaid you know substantial amount of debt. Company has increased its retail business. 48:45 48 minutes, 45 seconds Company has increased the dealer network. The margins are better today than let's say they were three or four years ago. So those are the positives 48:53 48 minutes, 53 seconds and now with this you know this year in FI27 the substantial amount of debt gets paid. uh thereafter a company you know 49:01 49 minutes, 1 second can be very focused on the growth agenda because whatever positive cash flow it generates uh it can go into the growth 49:09 49 minutes, 9 seconds and there is still lot of growth in this country lack uh and we are also export oriented so you know when medium-term 49:16 49 minutes, 16 seconds right if I think of three four years uh you know we are very very positive and even for the next year we are being very 49:24 49 minutes, 24 seconds cautious when we speak because things are uncertain we do not know what holds for any any or all of us uh and we will 49:32 49 minutes, 32 seconds see how that goes but we are preparing ourselves for that. Thank you. Okay sir, one question sir for drip irrigation 49:38 49 minutes, 38 seconds like it's the major technology why it is not changed northern India I have never ever seen drip irrigation project in 49:47 49 minutes, 47 seconds like uh district like Hana like Delhi like Jamu Punjab so why it's not changing all over India why it's 49:55 49 minutes, 55 seconds changing only southern part of India why it's not capturing all over India it's a win-win technology sir why it's not 50:03 50 minutes, 3 seconds everybody is not using it. Why? What what's that big hole that is not that country is not adopting to this technology? 50:14 50 minutes, 14 seconds Yeah. Uh again uh that's a good question. So if I really look at that FI26 right how much RIP we sold where uh 50:22 50 minutes, 22 seconds in terms of different regions. So Maharashtra you know just to give you a flavor of the numbers right Maharashtra we sold 700 crores south four states put 50:30 50 minutes, 30 seconds together we sold 400 and odd crores. uh then in the west west is then Gujarat uh MP uh that part Rajasthan that was 250 50:40 50 minutes, 40 seconds crores the rest of the north we sold about 88 crores so it is not that we don't sell 88 crores and northeast east 50:49 50 minutes, 49 seconds part we sold about 100 crores so you know we are selling and in fact uh if I look at in north last year sales were 75 50:58 50 minutes, 58 seconds cr this were there 88 crores so there is a 20% growth east last year I sale was 60 cr this year is 107 crores. So there 51:06 51 minutes, 6 seconds is a substantial increase there also. So the reason uh north has less uh demand 51:13 51 minutes, 13 seconds for today I and I would underline the word today for drip is typically in west and south if farmer needs to irrigate 51:21 51 minutes, 21 seconds his farm and if he needs to take the groundwater for example he needs to go down uh 100 ft 200 ft 300 ft in places 51:30 51 minutes, 30 seconds like UP and Bihar lot of places you go down 10 ft and you get water so the value of the water understanding is less 51:38 51 minutes, 38 seconds Not but you you talked about Hana let's talk about Punjab right there are these rivers and the canals and the farmer 51:46 51 minutes, 46 seconds keep on getting water they keep on getting free electricity they don't want to save and if they are growing just wheat and rice the government is buying 51:53 51 minutes, 53 seconds they're not worried about marketing the farmers in west and south right they're growing value added agriculture they want to make more production so they 52:01 52 minutes, 1 second want to employ drip because drip just doesn't save water but improves productivity and production by 50% for these farmers they make lot more money. 52:09 52 minutes, 9 seconds Some of our customers in west and south are making 2, three, four lakh rupees per acre per year net profit and some of the farmers in northern India are also 52:18 52 minutes, 18 seconds doing. We have cases of farmers in Bihar, UP, Punjab, Hana number is small, right? But they are now doing very well. 52:26 52 minutes, 26 seconds They are growing crops like banana moving beyond wheat and rice. So and we think we are now started drip on the rice also. So with you know what happens 52:36 52 minutes, 36 seconds is that sometimes it takes time and now I believe right uh if last 20 to 30 52:44 52 minutes, 44 seconds years western and southern India has used drip as a technology to change the farming and to improve the farmer 52:51 52 minutes, 51 seconds incomes. I think over next 5 to seven years that's going to happen in north and northeast and it has already started. I gave you the numbers that uh 53:00 53 minutes we are already growing in these areas but base is small uh but I think over next 2 three years as we get more dealers to push forward and as the 53:09 53 minutes, 9 seconds farmers also are doing more valued agriculture lot more get sold there. Thank you. 53:15 53 minutes, 15 seconds Okay. Okay sir. One question, last question. 53:21 53 minutes, 21 seconds How how long how far it has gone that you have signed with JNK government? Yeah, the the coffee we 53:30 53 minutes, 30 seconds started we signed with the you know coffee board uh you know and uh there our first drip irrigation systems have been delivered to the coffee grower. 53:40 53 minutes, 40 seconds Again it is happening for the kind of first time in the world that coffee they're using these advanced irrigation 53:47 53 minutes, 47 seconds uh methods. Uh the we already have good sales in JNK. uh there the MOU was to 53:55 53 minutes, 55 seconds work with the irrigation technologies into you know crops like saffron because that and apple that is what is grown 54:02 54 minutes, 2 seconds more in northern India and uh there also we have a good success and we think JNK using the technology can modernize its 54:10 54 minutes, 10 seconds apple gardens and apple orchards and then India does not have to import apple because today our productivity is quite low so we're working with the you know 54:19 54 minutes, 19 seconds the local farmers there to change the entire package age of uh agriculture practices uh into a product like Apple. 54:27 54 minutes, 27 seconds Thank you. 54:29 54 minutes, 29 seconds Thank you. That ladies and gentlemen that was the last question for today. I would like to hand the conference over to the management for the closing remarks. Over to you team. 54:38 54 minutes, 38 seconds Yeah. So you know so I think already just to summarize what I said uh last couple of months have been challenging 54:46 54 minutes, 46 seconds into the business but things are stabilizing and uh so you know there are green shoots growth is back farmers have 54:53 54 minutes, 53 seconds started coming with the orders so that's positive uh overall food looks as a much positive year for 27 uh drip continues 55:02 55 minutes, 2 seconds to remain you know quite good margins and profitable for us and our focus this year is on cash flow as a s one's most 55:10 55 minutes, 10 seconds important priority to ensure that uh we are able to take care of the you know signant amount of debt which is falling 55:19 55 minutes, 19 seconds through this year but we are very confident that it would happen in time and u uh we have taken necessary steps 55:26 55 minutes, 26 seconds and we have backup options uh to ensure that we'll come through well on that and 28 onwards you know business is focused 55:34 55 minutes, 34 seconds purely on growth because internal across and cash flow would uh provide the huge support for 55:41 55 minutes, 41 seconds the growth across all three businesses we have. Thank you. 55:48 55 minutes, 48 seconds Thank you ladies and gentlemen of Dia Choxy Finso Private Limited and Jen irrigation system that conclude this 55:56 55 minutes, 56 seconds conference. Thank you for joining us and you may now disconnect your lines.