Sales ahead of our estimates: Jain Irrigation’s (JISL’s) total income grew by ~37% YoY to Rs9,635m (our expectation was Rs8,797m) during Q4FY10. Robust sales growth is mainly led by higher growth in Micro Irrigation System (MIS) (~46% YoY) and agro processing (~57% YoY). MIS has shown robust growth across all states. On the other hand, the export market in agro processing has shown some signs of revival in overseas demand and has been witnessing improvement in the global environment. JISL’s EBITDA margin has fallen by 150bps YoY to ~21% mainly due to lower margin in agro-processing business. Agro-processing EBITDAM dipped by 1000bps YoY to ~10% (fallen by 510bps QoQ) on the back of higher raw material prices. Overall, EBITDA grew by ~28% YoY to Rs2,031m during Q4FY10 (our expectation was Rs1,999m)....
