Call Overview
• Date: February 5, 2024
• Submitted transcript on: February 9, 2024
• Led by: Managing Director Ramesh Ramachandran
• Focus: Company performance for Q3 and nine months ending December 31, 2023
Micro-Irrigation Industry Insights
• Critical for addressing water scarcity and enhancing agricultural productivity.
• Government recognizes micro-irrigation as vital for doubling farmer income.
• Current low penetration of micro-irrigation technologies in India.
Industry Growth Trends
• Decline in growth from 11-12% CAGR (FY'17 to FY'20) to 4.6% (FY'17 to FY'23).
• Expected rebound with projected growth of 10-13% for FY'24.
• Key states contributing to growth: Gujarat and Karnataka.
• MEIL focusing on underperforming markets: UP, Rajasthan, and Bihar.
Financial Performance
• FY'24: Positive revenue and profit before tax growth.
• Significant growth in non-subsidy business:
• 52.7% increase in thin wall revenue.
• 74.6% rise in irrigation project revenue.
• Q3 FY'24: 22% year-over-year top-line growth.
• Year-to-date (YTD) FY '24: 37.2% increase in top-line growth.
Future Outlook
• Anticipated growth in Q4 FY '24, despite potential impacts from General Election Model Code of Conduct.
• Plans to reduce dependency on subsidies and expand national presence.
• Key strategies:
• Focus on non-subsidy segments (institutions, exports, irrigation projects).
• Expansion in northern and eastern India.
• Enhance digitization for precision irrigation solutions.
Management's Commitment
• Balancing growth and margins for sustainable long-term growth.
• Optimism about returning to previous margin levels (5% to potentially 7-10%).
• Exploring opportunities in greenhouse ventures.
Investor Engagement
• Addressed concerns about market share growth and industry stagnation.
• Consideration of suggestions for improved investor communication.
• Commitment to increasing market share and exploring financing options.
Conclusion
• Ramesh Ramachandran expressed confidence in the company's ability to meet future demand and navigate market challenges.
• Acknowledged investor support and passion during the 10th investor call.

Submission Details
• Date of submission: May 9, 2023
• Transcript of investor call held on May 2, 2023
• Compliance with SEBI regulations
Key Highlights from the Call
• Leadership: Led by Managing Director Mr. Ashok Sharma
• Focus Areas:
• Company performance for Q4 and fiscal year ending March 31, 2023
• Urgent need for improved water usage efficiency in India
• Current micro-irrigation usage at 13-14% of irrigable land
Company Performance
• Growth Commitment: Pioneer in micro-irrigation since 1986
• Challenges:
• Rising raw material costs
• Slow adoption rates
• Positive Developments:
• Recovery signs in Andhra Pradesh
• Focus on non-subsidy businesses and cost optimization
• Improved margins and social responsibility initiatives
Financial Overview
• H2 FY’23 Growth: 86% increase over H1
• Q4 FY’23 Results:
• Revenue growth of 6.7%
• Profit after tax of 2.74 crores
• Future Outlook: Anticipated industry growth of 7% to 13% in FY’24
Q&A Session Insights
• Aditya Shah's Questions:
• Increase in other costs and operating margins
• Status of trade receivables and non-subsidy business
• Ashok Sharma's Responses:
• Increase in costs due to project expenses and provisions
• Non-subsidy business now accounts for 20% of revenues
Market Recovery and Challenges
• Volume Decline: 20-30% since FY'20
• Future Projections: 12% to 15% industry growth expected
• Greenhouse Business: Struggles due to subsidy issues and farmer viability
Cost Management and Raw Materials
• Cost Reduction Initiatives: Distributed manufacturing and design improvements
• Raw Material Costs: Expected to remain stable, representing about 50% of sales
Conclusion
• Investor Engagement: Encouragement for further inquiries
• Outlook: Optimism for recovery and growth in the irrigation sector