The shares of the world’s second-largest micro-irrigation company gained up to 7 percent after the company signed a Memorandum of Understanding with the Coffee Board of India.
With a market capitalization of Rs 4,670.27 crore, the shares of Jain Irrigation Systems Ltd were trading at Rs 69.97 per share, increasing around 5 percent as compared to the previous closing price of Rs 66.74 apiece.
Reason for Rise:-
The company shares have seen drastic movement after Jain Irrigation Systems Ltd signed a Memorandum of Understanding with the Coffee Board of India for the commercial release of the advanced high-quality, disease-resistant coffee plant to growers. This collaboration will help the company to expand in the coffee industry.
Furthermore, as per the terms of the MoU, Jain Irrigation would multiply and sell the selected coffee plants directly to producers while paying a royalty to the Board. Contract propagation in large quantities from institutions, planter associations, and individual coffee estate owners, broadening the scope of its revolutionary coffee-growing solutions.
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Director’s Comment:-
Mr. Ajit Jain, Managing Director, of Jain Irrigation, said, “We are extremely proud to introduce to the world an elite coffee- a disease-free, genetically uniform, and high-yielding variety – bringing prosperity to Indian coffee farmers and putting Indian coffee on the global map.”
Financial Condition:-
Examining the company’s financial performance, revenue soared by 13 percent from Rs 1,701 crore in Q1FY24 to Rs 1,478 crore in Q1FY25, however during the same time frame, net profit plummeted by 67 percent from Rs 37 crore to 12 crore.
Order Book & footprint:-
Jain Irrigation Systems has a strong order book of Rs 1,000 crores on a standalone basis and at a consolidated level, total orders at about Rs 1,800 crores. Out of this Rs 1,800 crores, most of the large orders, which the company has in hand, about Rs 1,000 crores are actually in the Food business because that is governed partly by contract.
Jain Irrigation Systems, an Indian multinational firm with manufacturing operations in 30 sites globally, employs over 12,000 associates and generates around USD 1 billion in revenue.
Company Profile:-
Jain Irrigation Systems Limited manufactures micro irrigation systems, PVC pipes, HDPE pipes, plastic sheets, agro-processed products, renewable energy solutions, tissue culture plants, financial services, and other agricultural inputs.
Written by:- Abhishek Singh
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