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ANIL JAIN:
MODERATOR:
MR. ANIL JAIN MANAGING DIRECTOR, JAIN IRRIGATION LTD. MR. MANOJ LODHA GROUP CFO, JAIN IRRIGATION LTD. MR. PRADEEP TIBREWALA SENIOR VICE PRESIDENT FINANCE MR. NIKHIL VORA MANAGING DIRECTOR, IDFC SECURITIES MS SWATI NANGALIA AVP, IDFC SECURITIES
Moderator:
Ladies and gentlemen good day and welcome to Jain Irrigations Q1 FY14 Earnings Conference Call hosted by IDFC Securities Limited. As a reminder, all participants lines will be in a listenonly mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference please signal an operator by pressing * then 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nikhil Vora of IDFC. Thank you. And over to you sir.
Nikhil Vora:
Thanks, Inba. A warm welcome to everyone on the call for the Q1 FY14 earnings conference call of Jain Irrigation. We have with us the senior management team of Jain, as always Anil ji -Managing Director; Manoj Lodha CFO; and Pradeep Tibrewala Senior Vice President Finance. I will hand it over to Anil ji first to make the opening remarks and a brief on the numbers and then we can open the floor for Q&A. Over to you Anil ji.
Anil Jain:
Thanks, Nikhil. Good afternoon everybody. We declared our results day before yesterday, yesterday being holiday. We have in a sense turned around especially in Micro Irrigation business, I remember almost 6 quarters ago we had said that as we change the business model where we are more focused on cash and low receivable, it is going to take 4 to 6 quarters of negative growth and we did have neutral to negative growth for 5 quarters and this was the 6th quarter. In the current quarter we have grown 21% and that is in line with our estimation which we talked about earlier. Now a lot of growth has come especially from Export market and that is also we had predicted that current year as a Micro Irrigation business will grow more into project and into Exports and the first quarter the Export in Micro Irrigation grew by 237% and Domestic business was almost same as last year. Now while it is same as last year, it is important that for the entire last year that business was almost 27% negative Domestic business. So considering that it was negative for over four quarters for 27%, the fact that it has come to neutral is a big jump. Now as we move along in the rest of the year we believe this combination will continue that the Exports will continue to grow, we will have also projects coming in the second half of the year which have been in pipeline and we believe in select states like state of Maharashtra, we grew 11% in this quarter as well, and it is a very important state for us. In state of Gujarat also we grew business significantly in this quarter more than 30% or so. We grew also business in Karnataka. So the select states may be 4 or 5 states like this we will continue to maintain positive growth while in some other states where we needed to collect the receivables and we did not wanted to increase the exposure we might continue to see the degrowth which we have seen even in the first quarter. But all in all we believe for the whole year Domestic business will be in positive territory and along with the projects and Exports we are expecting business to grow north of 20% in Micro Irrigation business. Now the next question in Micro Irrigation business is while the business is growing what is going to happen to receivables. So in terms of receivables especially about the Domestic business for the Micro Irrigation, end of March there were about 1222 crores and end of June they were at about 1180 crores so there has been that reduction