Ladies and gentlemen, good day, and welcome to Jain Irrigation Q2 and H1 FY 2026 con- call. As a reminder, all participants' lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Bhavya Sharma. Thank you, and over to you.
Thank you. Good evening, everyone, and welcome to Jain Irrigation Systems Limited earnings call to discuss the Q2 and H1 FY 2026 results. Today we have on call Mr. Anil Jain, CEO and MD, and Mr. Bipeen Valame, CFO. We must remind you that the discussion on today's call may include certain forward-looking statements that may involve known and unknown risks, uncertainties and other factors, and must therefore be viewed in conjunction with the risks that the company faces. Future results, performance, or achievements may differ significantly from what is expressed and implied by such forward-looking statements. Please note the results and presentations are available on exchange and our company's website. I now request Mr. Anil Jain to take us through the company's business outlook and financial highlights, subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.
Thank you. Welcome everybody to this call for the second quarter for FY 2026. Wishing everybody Happy New Year as per the Indian calendar. We had a board meeting earlier today, and we have announced our results. As generally, September quarter is a mute quarter for us because of the heavy monsoon. During monsoon there is always a limited demand for either irrigation or pipes, traditionally. But despite that structural issue for the current quarter, I think overall, company has done well. As you might have seen from the results, overall income for the company has grown almost 20% to INR 1,432 crore as against last year same period about INR 1,191 crore. This 20% growth has come in a little bit in a deflationary environment as well. For example, PVC resin prices have been low during this period of time.
When you take into account the deflationary scenario because even fruit pulp prices were quite low. When you look into those things and still see 20% growth, that means on quantity basis, in fact, overall growth has been close to 25%. That is a quite positive and good thing. The first quarter we had grown about, I think 5%- 6%. This quarter's growth of 20%. So for the first half, the growth is around 12% or so. That is in line with what we had expected. Typically for our company, second half is always much stronger than the first half due to seasonality. I think, in line with what we had said that, overall for the year, we would expect to grow beyond 15%.
I think we are onto that because we have already done about 12% by now, 11%- 12%, and quarter three and quarter four are expected to be strong. Overall, we should meet our stated goal of maintaining good growth rate. What is important in this quarter was not just that revenues grew quite good, but earnings also grew quite nicely. Our earnings grew at a faster pace than the revenues. While revenues grew 20%, EBITDA for the company grew 43%. That shows the quality of the earnings in different businesses. In fact, if I look at high-tech business or plastic or agro-processing, by and large, all businesses have been stable to positive in terms of earnings growth also.
Revenue growth coupled with the higher level of the earnings growth showed that some of the things which we have been working in the past are started yielding results now. When I look at individual businesses which we have, high-tech business grew almost 39% this quarter. Plastic grew about 9.5%, and agro-processing grew 15%. Again, all good numbers. Within high-tech apart from the retail business related to micro irrigation, we also had good exports. We had good business for solar pumps. Combination of all of these things has resulted into very solid number. Plastic, as I said, had more impact of also deflation. While quantities overall plastics then has grown better. In terms of earnings, I think in line with the revenue growth, high-tech EBITDA has grown also by 37%.
Especially food has grown significantly in terms of earnings because of the better product mix and good processing season, which we had from mangoes. In terms of margin percentage of EBITDA, I think high-tech is maintaining around 19%. Plastics is double digit, and agro-p rocessing has improved from low -single- digit to double- digit. That is all favoring quite well. When you look at first half, as a company, we have done close to INR 3,000 crore of revenue across, put together all businesses with an EBITDA of INR 400 crore. If I really look at the EBITDA of the current quarter, it is quite strong. I do not think we ever had such a strong quarter in terms of EBITDA, especially in September, which is a monsoon quarter. I think that augurs well for the remainder of the year for us.
In terms of structurally speaking, where business is going and where we are seeing growth, we see that because it has been a good monsoon, that between now and till next May, there should be good demand for the Rabi crop and for the summer crops going forward for irrigation as well as pipe business. In case of tissue culture business, which we have where we sell planting materials, the demand for banana is booming. In fact, we are sold out. We are working to add capacities going forward, but it takes time to add capacities. Over the next couple of years, we will be increasing our capacity in that business by 50% or three years by almost double. There is so much more demand because the end produce that is banana, farmers are making good money. India started exporting a lot the bananas.
So there is that momentum, which I think as a cycle, I think we expect it to remain for longer period of time. Piping, as I said, was soft because of two reasons. One, since mid-May, it has been raining, so fields have been wet, so there was less demand. Also, government spend on the pipe-related infrastructure has been much less compared to, let's say, last two, three years. So combination created that lower demand scenario. But I think we have weathered the worst period behind us now on piping demand. So going forward, it should look good. And within the Plastics division or plastic sheet business, the other plastic products which we have in Europe and U.S., that has continued to do well for us. And in terms of revenue growth, earnings power, that continues to look good.
In terms of agro- processing, traditionally we do this onion sales as well as dried onion and fruit pulp, et cetera. But we have started now a new project in our food processing subsidiary, where we are likely to start manufacturing in the current quarter some beverage bottling. Earlier, we had a small line where we used to have some juice packing and so on. But those capacity was quite small. But now we are entering into a new understanding and a collaboration with a large beverage manufacturer. So some big global-level capacity lines are being installed. But majority of positive impact in terms of revenue and everything else would come into the next fiscal year. But already in the fourth quarter, there should be some additional revenue coming into the food business due to the beverage bottling unit.
And we expect over the next one, two years, that business to grow significantly because the plan we have along with our collaborator and partner is to add lot of capacity going forward in that space. So we are seeing, as I said, growth into beverage bottling. We are seeing growth into banana. We are seeing lot of growth in MIS itself as more young farmers are adopting new technology. And apart from onion and mangoes, we are seeing also good growth opportunity in garlic because lot of our customers in U.S. are wanting to have a pivot away from China due to all the volatility and so on. So India could be a good, I think, new supply location for dried garlic into Western markets.
And post understanding of how things will work out between the governments and the duties, et cetera, medium -to long- term, we expect garlic also to become a strong contender as a major product line for our food processing business. Beyond Indian shores, I think our food processing business has grown in U.K. market quite nicely. It has also grown into U.S. market. Türkiye, which is much smaller entity did not grow that much because of larger, I think, economical issue in that country. But overall, we have been able to ensure that revenue growth between what happened in India and overseas is around 15% in this current quarter. And for the first half, overall food has grown about close to 7%. In terms of competitiveness going forward in marketplace, in pipe and drip, there are a lot of companies which are competing with us.
Some of them are strong players, organized, and a lot of them are not so organized there. In case of micro-irrigation business, we are a clear leader in terms of either revenue, size, technology, profitability. I think we lead all the way in case of micro-irrigation. In case of pipings, there are other companies which are larger than us. But we think in medium- term, we would catch up there. Overall scale, because we are looking to grow more than 15%, higher scale in terms of absorption of capacity would allow us to be more competitive going forward. In terms of cash flows, where we look at overall cash flow, company has been maintaining positive cash flows in total in terms of, we had earned about this quarter, about INR 190 crore generated net cash from operating activities post working capital change.
In fact, before working capital change, it is about INR 400 crore. Because of seasonality, we had INR 200 crore added usually in working capital. That should come back to Q3- Q4. For the whole year, we expect a really strong cash flow from operations. Working capital, in fact, despite this 15% growth by the end of the year FY 2026, we would have less inventory and receivables than we had at the start of the year. That is the focus we have to bring working capital efficiency on the balance sheet side and to generate positive operating cash flow. That available cash partly will go for debt servicing, of course. In addition, it would go for growth of the business going into FY 2027. Because what we are talking of that 15% growth on consolidated this year is not just for the current year.
As we think through 2027/20 28, we are seeing good tailwinds in terms of where we wish to go. All businesses, we have six total businesses. One is drip and sprinkler, one is plastic pipes. We have a plastic sheet business overseas. Then we have this tissue culture business, then we have solar pump business and then, of course, food processing. Across all businesses, we feel quite confident of the good growth opportunity, either because of our technological leadership or the brand equity in the retail markets with the dealers and the farmers or the infrastructure which we possess in case of food processing company and the global distribution channels we have. Again, each business has its own unique challenges, global geopolitical issues.
I think all in all, because oil is benign, polymer prices would expect to remain similar levels where they are because again, new capacities are coming up. Polyethylene new capacity coming up in PVC. In India, there are two new plants coming up by 2026/20 27. I think as a large consumer of polymers, this works well for us that more and more new capacities are coming up. In case of, as you might have seen recently, this is one of the first time India had food inflation almost not there. That we also see that there were much lower prices for mangoes, for example, when we were processing. Onion prices have been reasonable. I think if that continues, that should also help because that increases demand.
During this quarter, the government came up with the GST 2.0, in which GST on drip irrigation has been reduced from 12% to 5% with a reduction of 7% approx. We have passed on all that reduction to our end customers. The market will pick up now, because if you track, it has been raining up to now. Despite that, we have done well. Going forward, we should do even better with lower pricing now for customers and with the dry fields. Once the rain stops, hopefully this week, next week, more demand should flow because of the GST reduction Government of India has made. Also, GST has been reduced on the solar pump. That should spur the government also to take more solar pumps on behalf of the farmers. That could help.
In case of our Piping division, where there is an infrastructure application, where we supply to the private parties, B2B business, we are seeing many more inquiries, but it is very competitive business. We think some of these inquiries, the specialized applications where large diameter pipes are required, such as the desalination projects or some global overseas projects. There, I think our company should be doing better compared to, let's say, competition, because very few people have very large diameter pipelines, like 2.5 m. I think that should go well. Maybe starting from some of these projects might still take a few months to get converted, but fourth quarter should bring some good numbers and next year is definitely, there are so many projects being negotiated in that pipeline.
Next year will be very big on the infrastructure applications of large diameter pipe or specialized applications. I think these were some of my observations and our company's observations in terms of how this quarter panned out, how the first half has panned out, and how we are looking at the remainder of half. Now I would like to open the floor for the questions from listeners, investors, participants. Thank you.
Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Praneet, an individual investor. Please go ahead.
Hi. Thank you for the opportunity. I was wondering about the overall debt repayment schedule because I understand that we are going to get a payment very soon in terms of 2027. How are we expected to finance that? I understand receivables are going to play a part, but could you give a perspective on how it is going to work? Because if there is a delay or otherwise, how do we plan on paying that particular payment in 2027?
I believe we should be able to pay the entire debt repayment through internal accruals. We have approximately, I think INR 200 odd crore falling due in FY 2027 in September, and the major amount falls only in March 2027. We almost 18 months. Beyond receivable collection, legacy receivable collection, government project, et cetera, I think the cash flow generation in rest of the businesses together should be more than enough in terms of ensuring the repayment. I think we have been repaying, in fact, last three and a half years, company has repaid almost INR 1,300 crore of debt from the normal operations. This is before we sold our sales business, et cetera. That repayment was another INR 3,000 crore. That is separate. But this one has been done through internal accruals. We do not foresee any issue here.
I understand that we have been facing concerns with working capital because we ended up spending our equity infusion also through that. Could you give, how will we be able to fund working capital and the debt repayment together? Because if we want to grow at the 15% rates you are forecasting, how do we plan on doing that, especially when receivables are not coming fast, quick enough?
I think in terms of growth, we have done 20% growth this quarter. In essence, we have not added any debt towards the working capital during this quarter. We repaid some of the long-term debt. It went down. As internal accruals come through, some of the old receivables come through as a combination. We should be able to do adequate, let us say, business to support working capital. We have about INR 1,000 crore in inventory. We have about INR 2,000 crore in receivable. Even release of approximately, let us say, INR 300 crore-INR 350 crore, we anticipate at least minimum in next six months on that count should easily suffice to give additional growth. Another important point I would like to mention that our focus on future growth. A lot of that growth is going to come from our dealer business.
In dealer business, our model in both pipe and drip is that we receive money in advance from dealers. That growth does not require additional working capital. Do you get me?
Understood. I understand that the overall receivables part of it, that it is mostly state government receivables. What kind of exposure do we have from each state? Because it is spread across multiple states. Which state is likely to give the last and what percentage of that? Could you give some idea on how it is, like in terms of state- and center- sponsored versus the geographic between multiple states, how is it spread across?
Two ways, right? One is some states where the states owe us money towards the EPC projects which we have done or which we are in process of completing. Those projects are partly funded by a state. Sometimes they get money from the water resource ministry in Delhi, combination. Those states where we need to receive money are Karnataka, Andhra Pradesh, Maharashtra, Madhya Pradesh. Part in, let us say, Haryana and Himachal. These are six states where most of our EPC funds have to come. Additionally, we need to receive some funds which are related to government subsidy, which government gives to the farmers related to drip irrigation. The center participates in that, but the money is released to the state governments. There, the funds need to come from people like Andhra, Telangana, Gujarat, I think Tamil Nadu, these four or five states.
We have our internal credit limits, right? Unless we receive old money, we are not giving a lot of new money or new supplies into those states. At the same time, we are also building a parallel network or market where we are selling even the states where, let us say, government provide 80% subsidy to a farmer. We are able to directly sell to the farmers using 100% cash model. That also we have worked on and this is becoming more successful because ultimately, farmers want good quality, good technology. They can make that much of money within one or two years pay back on investment in drip. As a combination of that, we are not too much exposed to a single state. Generally speaking, I think a lot more money needs to come from southern states for us than west.
We have less business, let's say, north and northeast.
Understood. I understand government projects, we are in the last leg of completing them. Could you give a timeline of the overall EPC? When do we expect to complete the remaining order book? In what years do we expect what kind of receivables to enter the company's books?
When all of this story started, sometimes in 2021, we had some 38 or 39 projects which were ongoing. I think significant majority of those we have closed or submitted. The four or five major projects which are still open, where we are done like 90% of work, remaining 5%- 10% of work, which is sometimes linked to what government needs to do. For example, just to give you an idea, that we build the whole piping distribution network, pump house and so on, but government needs to bring electricity to that location. When the electricity comes, then only project fruition and the remaining 5% work can be done.
That way, we are anticipating that the projects which were where we are more than 90%, which are major five projects, we should be able to complete sometimes in next six months or so, by March 2026. One or two projects which started late, they would go through FY 2027, but that would be, I think, one or two projects. Otherwise, in terms of numbers and in terms of also value, a significant amount you will see completion in March 2026. All that fund should flow into the company by March 2027.
Even the remaining INR 900 crore receivables we still have left with the government, INR 800 crore for the EPC business.
The EPC business, that is what I am talking about. These projects would get completed and all that money should be with us in FY 2027. Except, as I said, one project we have for water supply in Pune, that would go through exhibition also in FY 2027.
After we raise our, let us say, milestone payment invoice, how long will it take for the government to release those funds?
As I said, because as we expect to complete by FY 2026, within 12 months of that, max, we should get all that money.
Understood. By FY 2027, we expect to get most of our payments by end of 2027.
Absolutely right.
Okay. Thank you so much for your time. I will join back the queue.
Thank you. The next question comes from the line of Nishita from Sapphire Capital. Please go ahead.
Hello.
Yes, ma'am.
Yes.
Yes, ma'am. We can hear you.
Yes. I had a few questions. In the presentation, you mentioned an order book of around INR 1,900 crore on a consolidated basis. Can you give an execution timeline for that order book?
I think, basically, most of these orders we should be able to do in next six months.
Some of them, I think if you look at total INR 1,900 crore. No, consol, yeah, INR 1,900 crore. Let's say INR 400 crore would move into the next fiscal, but INR 1,500 crore should happen during the current year. What would move next year is some of the, for example, food orders we have. They have a 12-month cycle, so some of them will go into April to September. Some of the, I think mostly food would actually go into the next period. All other orders related to pipe or drip or tissue culture or plastic products should get done between now and March.
Okay. Understood. Can you give a bifurcation from export and domestic business?
I think overall our exports have been quite robust in totality for the overall company. INR 129 crore was for the standalone company in this particular quarter. For the whole first half, our exports have been INR 259 crore, about let's say INR 260 crore.
Right.
Which was last year's same period INR 188 crore. About 38% growth for the first half in exports.
Okay, understood.
[Non-English content]
I also had a question on this partnership for the beverage company for bottling unit that you have. What is the capacity for it, and how much incremental revenue are you expecting from that capacity in FY 2027?
This is being installed in our food processing subsidiary, Jain Farm Fresh.
The first two lines which will be in place, let's say by March. First line already in the first this quarter, second line in March. We should be able to generate good quantity in terms of bottling of juices, colas, et cetera. In terms of revenue number, depending on the market and everything else, I think the first two lines should add close to, I think, about INR 400 crore to INR 500 crore in full year of working at about 65% to 75% capacity utilization. Our partner is indicating that they have good demand with themselves, so we should be able to achieve that. There will be, in phase two, some additional capacity added in FY 2027 second half, and that should generate higher revenue let's say in FY 2028 then.
Okay, understood. You have the 15% and-
Sorry to interrupt. Several participants are waiting.
Please return to question queue—
Last question.
for the follow-up question, ma'am.
Just this last question. That's my last question.
Yes, please.
The next question comes from the line of Sanket Kumar from AB Investments Limited. Please go ahead.
Hello.
Yes, please.
Hello, sir. Good performance year-on-year, but quarter-on-quarter the revenue has been decreasing, sir. Any issues like you have said, government orders. But high-tech business, sir, being so many years in micro-irrigation, the business has not really pumped up. Being the biggest player, only player in the country, sir, when will this convert into exponential growth? You understand what I am saying? Sir, any views on that, sir?
I understand what you are saying. First of all, business is not going down, right? Year to year, 20% growth, but sequentially, because this is a rainy season quarter, business is always low. It goes back to the inception of the company, for the last 30- 40 years. This quarter is always the lowest quarter. But, as I said at the start of the call, we feel very confident of quarter three being good and maintaining that 15%+ growth for the entire year. So in terms of exponential growth, there are a lot of people in micro-irrigation, right? It is not just us. There are, I think, small companies that are 400, there are automated company maybe 10- 20. Over the last two, three years, agriculture sector, the farmers, due to the climate change and all of those issues, have been suffering one way or the other.
So that's why we are also focused more on exports, but doing more value addition. So in micro-irrigation, this division, High- Tech Agri division, what we call it, have grown 38%. That's the exemplary growth. So we anticipate strong growth numbers going forward also. Now, it has taken some time to come up with the solutions for farmers which would address the climate change, because this is a new technology. Adoption of technology takes some time for the farmers. But it has started. I think now new generation of farmers are also joining, and they want to use the new technology. So I think secular basis, in terms of going forward. We expect this division will continue to do well.
As I said, as you can see from some of the details, if you can read through investor presentation, it has one of the highest level of margins, 19% level of type of EBITDA as a combined High- Tech Agri division. So when you have that level of margin because of our integration and the full play in terms of what offering we provide to the customer, a complete solution, we are able to maintain those margins, and the growth. So I think overall as a division, it will do very well going forward.
Okay. Sir, next question. Sir, Tissue culture MoU that you have signed with the government, sir, what's that work in progress? Can you review that, sir?
In tissue culture today, our primary products which we sell in large quantities to farmers are banana and pomegranate. We also do papaya, mango, and a few other products. The MoU we have signed is with the Coffee Board of India, and there we're doing some more work on the coffee. Other product which has started working in tissue culture in that division-
One second. Are you able to hear me? Mr. Anil Jain, are you able to hear me? Mr. Anil Jain, are you able to hear me? Ladies and gentlemen, we have lost the connection for management. Please stay connected while we reconnect them. Ladies and gentlemen, the line for the management has been reconnected again, and the next question comes from the line of Lovish from Shiv Ashram Investment Management. Please go ahead.
Good afternoon. Am I audible?
Yeah, please.
Congratulations on a very good set of numbers. My question is regarding margins and a bit of strategy. I was looking at past financial data. Till 2012, the operating profit margins used to be in mid-double digits, around 13%- 14%. Since then, the margins have taken a dip to the extent that we end up with either losses or like even the latest quarter that we have reported results today, our net profit margin is around 1%. What is the management doing? What is the strategy to take the margins back to mid-double digits?
Okay. I think our margins this quarter are 13.9%.
No, I am not talking about EBITDA margins. I am talking about net margins.
I understand. Let me explain. I cannot explain net unless I start with EBITDA. Our EBITDA margins are 13.9%, which is quite healthy considering the market, the competition, et cetera. Cost of the goods and so on. Where is that money going today? What happens below EBITDA? There is a depreciation because company is growing. There is also interest cost on the debt. In that, a lot of this margin is getting lost. The only way net margin will go up is two possibilities. One is that EBITDA needs to go up further. Let us say from 13.9% to 15%-1 6%. That is feasible as we increase capacity utilization and so on. The second, debt needs to be deleveraged, so that so much of that profit is today being eaten because of the interest that needs to go away.
I think we are working on both. The ideal scenario would be on a net margin basis. I think that from 1% or 2%, how do we move at least in the reasonable future? How do we move to 5% to 7%? Two ways. Improve product mix in terms of what we sell and increase capacity utilization to improve EBITDA. Second would be to deleverage the company and not be paying interest. That is the only way net margin will go up. We think we are in the right direction, but it will not happen overnight. I think it would take a couple of years for us to start seeing strong net margins.
Mr. Anil Jain, are you there?
Yeah.
Yes. As the line for the participant has been disconnected, we are moving on to the next question. But before that, there is a reminder. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your question to one per participant. The next question comes from the line of Nishita from Sapphire Capital. Please go ahead.
Hello.
Yeah.
Yes.
One question last time.
Yes. I just wanted to ask, the 15% growth that you've guided for FY 2026, that does not include the bottling unit revenue, right? Since you are going to do only marginal revenue in bottling unit in FY 2026. Does that include the 15%? Does that include that revenue or it doesn't?
No, it doesn't because that won't be significant for the current year, but for FY 2027 it will be different ballgame.
A reminder to all the participants, please restrict yourselves to one question. The next question comes from the line of Sanket Kumar from AB Investments Limited. Please go ahead.
Sir, the question that was left in between tissue culture, what is the progress of coffee that we have signed an MoU with the government? Sir, that question was left in between.
Yes. In that, coffee, I think, the results have been very good with whatever tissue culture plants which we have supplied to the Coffee Board and which they have given to their farmers. in this part of the business, it takes one to three years for them to test it in their field and see how it comes. In terms of significant revenue, that would come maybe 2027 onwards. But the good news for the division as I was explaining, that banana demand is doing well, pomegranate is doing well. Potato seeds work which we are doing should result. Overall, I think I expect this particular division to maintain about 20%+ growth regardless of coffee. If coffee comes along post 2027, that would be good, and it will come along, but it just takes that much time.
Okay. Sir, any future plans for IPO of Jain Foods?
We have spoken earlier also that I think we would be in consultation with the.. We have a private equity shareholder in that company, Jain Farm Fresh. In their consultation, I think we would be planning to, again, subject to the market and market conditions, sometimes in 2026 calendar year, we should look at bringing their IPO for Foods.
Thank you. A reminder to all the participants, please restrict yourselves to one question. The next question comes from the line of Madhur Rathi from Counter Cyclic Investment. Please go ahead.
Sir, thank you for the opportunity. Sir, I wanted to understand regarding the receivables, and sir, when can we expect the government receivables to flow in?
I think government receivables should come through, most of them, next fiscal year, which are related to EPC projects, which are old legacy or projects being completed, et cetera. All of them should, most of them, and when I say most, more than 90%, should flow through latest by FY 2027 March.
Sir, out of the INR 2,300 odd crore in receivables that you have as of H1 and how much would be related to government and how much can we expect on a conservative basis to flow by FY 2027?
There are two. In the total receivables, post the provisions which has already been made, are about INR 2,000 crore. Out of INR 2,000 crore, project-related receivables are about INR 900 crore. Most of that should be with us by March 2027. There are some other government-related receivables, but they are ongoing. They get rotated. We get paid and then we supply new material, so that would remain. That is another INR 400 crore. What would be finished, which will come, and we are not doing EPC business again, that would be that INR 900 crore.
Sir, if I look at our FY 2024 con-call, we were very hopeful that we will receive it in FY 2025, these INR 800 crore -INR 900 crore of project receivables. Sir, what is the issue? Why are not we getting this money back? Sir, is it an issue from the government's end? Is it an issue from our end? Sir, I am just trying to understand, sir. In FY 2024, we were expecting it to come in FY 2025, but now we have moved this timeline to FY 2027. Sir, if you could just help us understand on that front.
Yes. It is not a static number because during this period to complete the incomplete project, we have done revenue of also another INR 1,500 crore. In fact, if I tell you, in FY 2023, we received INR 800 crore on the government projects. In FY 2024, we received INR 431 crore from the government. The year before we had received INR 632 crore. That kind of money is flowing, but meanwhile, because there was significant size of these projects were quite big. The new invoices have been created as we are completing the project. But now when you do the last milestones, which is what we are expecting to do over next six months, we expect in March 2027, most of these projects funding will come and nothing is left.
Because as I said, I think the total revenue which we still need to bill might be only INR 200 crore-INR 250 crore now, against all the projects. But two years ago in 2024, it was still about some INR 1,200 crore we still had to bill. So that money has come, but new buildings also has taken place.
Okay, sir. Sir, thank you so much and all the best.
Thank you.
Thank you.
The next question comes from the line of Kumar Divyanshu, an Individual Investor. Please go ahead.
Yeah, hello. My sound is audible?
Yes, sir. You are audible.
Hello. Welcome.
Okay. Congratulations, sir, for the very good set of numbers. I am having only one or two questions. My first question regarding to the order book. Could you please comment on the Q2 order book status, and what about the execution timeline?
I think the order book which we have talked about is across different businesses we have.
Sir, sorry to repeat.
Out of INR 1,900 crore order book, about INR 1,500 crore should get done in next six months, and about INR 400 crore by next September.
Okay, sir, but in the presentation, as I am able to see, the total consolidated order book is 19,047.
No, those are all rupees in millions, so INR 1,900 crore.
Okay.
All figures across are rupees in millions. It is INR 1,900 crore, out of which INR 1,500 crore. Almost close to 80% should happen, closed, let us say, between now and March, and then remainder by next September.
Okay. Out of INR 1,900 crore, the INR 400 crore will be by September next year, right?
Yes. INR 1,500 crore by March.
Okay. Thank you, sir.
Thank you.
Thank you so much. The next question comes from the line of Sanket Kumar at AB Investments Limited. Please go ahead.
Hello, sir. Sir, you are getting into new segments like now in bottling, piping you are there. Sir, pipe business has not been doing well for some quarters. Sir, isn't it a good idea to focus on rather a food business or some particular segment and grow it to the highest level? Like now, you are getting into bottling segment. Sir, are you confident growth you will able to lift to the heights of the company?
Yeah. We are quite confident of that. See, all businesses have their own merits, right? Micro irrigation business, we are already leader in the country and this High-Tech division this quarter has grown 39%. Pipe has been gone through deflation. In fact, you see last few quarters, it is not just us. Everybody else, all listed public companies on piping, you see. They have limited growth or challenges because of deflationary environment on pipe and lack of government spending. I think that is in the past. We are looking forward to a positive growth. In terms of the new growth opportunity in the food business. We make the pulp, right? Now this is the next stage. From pulp, you make the juice. We are using our existing infrastructure, which is already considerable capital investment.
Return on capital, which we are investing in this business, is expected to be very good. I think we are very mindful that for allocation of resources and allocation of capital should be very judicious, right? Because we suffered quite a lot between 2019 to 2022. We don't want to repeat those mistakes. We are very focused on any new investments we make, any new lines which we pick up or any additional growth opportunity we pursue should have a very good return in terms of capital, free cash flow. Your point is valid, but we are very focused on that and you will see good results overall. But even in the current quarter, the plastic divisions, which is including pipes, has done reasonably well in terms of the growth as well as improvement in margins.
Sir, Plastic division like Jain Pipes, I have not heard in North India. I live in Delhi, but I have not heard about any Finolex Pipes. I haven't getting to the dealers. But Jain Pipe, I have not heard about Jain Pipe. What are your strategy on this side of India?
Yeah. I think that's also a very good observation. When you talk of Finolex or some other names, let's say, a lot of them have, let's say, gone into urban pipe markets, including a lot of plumbing and so on. It has become known to the consumer. Our primary product line business which we have, goes to farmers into rural areas. And if you go to rural areas, I think whether in Rajasthan. We have a manufacturing plant in Alwar, near Delhi, 150 km from Delhi. So whether in Rajasthan or Bihar or U.P., everywhere Jain Irrigation is known or Jain Pipe is known in the rural areas, but it is not known in the urban cities or metros or mini metros as of now because we are not there present in the plumbing sector.
But larger point of what you mentioned, that over a period of time, we have been more present in western and Southern markets as a country. But now we are increasing our focus on northern and northeastern markets also. I think over next year or two, you will start seeing more presence of Jain in so many ways, into these markets also. Thank you.
Thank you. Ladies and gentlemen, we will take that as the last question for today. I now hand over the conference over to Anil Jain for closing comments.
Again, I would like to thank all the participants and apologize for that break for a minute or so due to platform connection. Overall, this has been a good quarter for us in so many ways. As I said, not just in revenue, but earnings and quality of earnings. We feel very positive for the remainder of the year. Of course, there are the geopolitics and whatnot, and climate change does throw time to time some kind of additional challenges to us, but that's our job to stay focused, work on it and still deliver good results. That's what we are committed to. Thanking you for the support from all investors as well as all the participants on the call. Thank you again.
On behalf of Jain Irrigation, that concludes this conference. Thank you for joining us and you may now disconnect your lines.