Jain Irrigation Systems Ltd (NSE: JISLJALEQS) Q1 2026 Earnings Call dated Jul. 26, 2025
Corporate Participants:
Unidentified Speaker
Anil Bhavarlal Jain — Managing Director, Vice Chairperson, Executive Director, Promoter-Director
Analysts:
Unidentified Participant
Nigel Mascarenhas — Analyst
Hemal Trivedi, — Analyst
Amit Agicha — Analyst
Madhur Rathi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to General Education Systems Limited Earnings Conference call hosted by TR Chogshi Finzer Private Limited. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation. Should you need assistance during the conference call, please signal an UpDater by pressing stars and zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Chin Ali Bala. Thank you. And over to you ma’.
Unidentified Participant
Thank you. Good afternoon everyone and welcome to Gen Education Systems Limited earnings call to discuss the Q1FY26 results. Today we have on call Mr. Anil Jain, CEO and Managing Director and Mr. Birpit Maleme, Chief Financial Officer. 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 risk 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 presentation are available on the Exchange and on our company’s website.
I now request Mr. Rani Zinn to take us through company’s business outlook and financial highlights subsequent to which we will open the floor for the Q and A session. Thank you. And over to you sir.
Anil Bhavarlal Jain — Managing Director, Vice Chairperson, Executive Director, Promoter-Director
Thank you. Welcome to everybody and especially thanks for coming onto the call on Saturday. So we concluded our board meeting earlier today for the June quarter results and overall I think in a deflationary environment where on one hand resin prices have come down quite a lot, on the other hand on the food side onion or the mango prices were one of the lowest we have seen in last few years. We have still managed to have positive revenue growth. I think that augurs well for the second half of the year. Now we see that this particular phenomenon of deflationary pricing on commodities, whether plastics or food, at least on plastic side it seems to have been arrested over the last two, three weeks and indications based on certain scenario planning is that things would be stable to firm going forward in the rest of the year.
In terms of food processing, I think in terms of lower prices of onion or mangoes, that’s already factored in but that would impact the significant growth which we’re planning could be lower because revenue prices would be lower but we have tried to process higher level of commodities in terms of quantity to try and make up for some of the deflationary pricing on the raw materials business. Overall I think we have been able to grow EBITDA also. Now in terms of when you look at business segments, our high tech agri segment has managed to have really very good growth rate closer to 30%.
The plastic came down by approximately 10% where the domestic demand for piping especially got hit very hard due to early monsoon starting mid May. But we had a positive growth in our overseas plastic sheet business. So overall as a division it has come at about still negative 10% and part of it is again deflation and partly rest less demand Agro processing for the factors we explained we almost done almost same level at what we did last year as a company in terms of overall profitability. When we look at EBITDA level I think in high tech business we have been able to improve our ebitda from about 15 point to 16.6%.
In plastic EBITDA it’s slightly come down due to lower revenues. While in agro processing EBITDA has improved by another 1.6%. So all in all I think we have about gained about 1 percentage point in terms of EBITDA for the overall business for the company. In terms of the timing of the year and seasonality this quarter we have consumed for the future growth in the remainder of 3/4 funds have gone into working capital. So you in June quarter end there was substantial increase in the receivables. There was some amount of increase in inventory as well. But we think all of this would get pared down between now and December.
Already in month of July almost 50% of increment in the receivable which we had in the June quarter has been recovered in last four weeks. So I think it’s a temporary short term phenomenon. For the medium term that is up to March 26th we expect to maintain the trend of continued improvement on working capital. In terms of DSOs. These outstanding again sales for both inventory as well as receivables. Even though in short term in the current quarter they have gone up the things which apart from high tech agribusiness, doing well in terms of drip irrigation has done well.
Also the solar pumps we had a good growth. We crossed 50 crores sales in the current quarter. So as against same period last year it was hardly less than 2 crores. So that was a big plus. Our exports have continued to do well. Overall exports grew in this current quarter from the same period from 88 crores to 130 crores. So almost registering 40% growth has come in the exports. So exports did well. Solar pumps did well. Drip irrigation overall has done well, pipe was down, food was even. That is how I will say different business segments have played out in total when.
In terms of. When you look at the projects projects, we closed one large project this particular quarter. Therefore project revenue was high and automatically that means higher receivable. Because by the time you would get paid again this particular receivable it would be another two quarters or so. But overall I think we are moving in the right direction. Whereas we had discussed earlier that Sometimes over next 12 months we expect to close majority of the project. And between now and next September, most of the overdue funds from the projects should be received by the company. This scale of the revenue of almost 1550 crores which we achieved this quarter.
So approximately 5% revenue growth has meant that the gross debt has remained almost same at the same level as last year was 3590 crores. While net debt has gone up slightly as extra usage of cash has gone into working capital. This was also a quarter where we got the funds coming in towards the equity for the warrants which we had issued earlier almost to the tune of 150 crores. And that has gone into building of the working capital. During this period we have also paid long term debt overall. While because of the increase in working capital and overall balance sheet, long term debt is constantly going down as required.
In the remainder period of nine months, approximately another 250crore of long term debt is due for the repayment which we should be able to do through internal accruals. And in addition, as we start receiving some of the overdue project receivables, we would be able to also pay down 0% NCDs. So that would be in addition to 250 crore which is the debt which is falling due for the resentment. In terms of overall scenario, as we are looking at it now, we expect in the remainder of the year drip irrigation business to continue to remain buoyant for us.
We expect that based on the good monsoon pipe demand should come back. We are seeing good flows for the solar pump orders also. And overall I think positive sense which we. You know, when we spoke about the year in the last con call we said for the whole year we are anticipating to manage growth north of 15% in terms of revenue. I think that guidance still remains despite the fact that first quarter we have grown only 5% due to mostly deflationary environment and a little bit of lack of demand because of that demand in the plastic and piping segment.
So overall as a structure I think we continue to remain strong in Marketplace at 16.6% EBITDA which I talked about at Hitech. This is one of the strongest year we have had on this division in terms of EBITDA and our cost basis. Right cost structure, which we have continues to remain very good going forward as well. Because you know, product mix is changing. We are selling more value added products on micro irrigation which is allowing us to compete with a lot of small players and still maintain margins while pursuing the growth and production capacities are at reasonable level.
In terms of CapEx, we have done some, you know, this quarter CapEx overall maintenance with growth CapEx was about 44 crores while depreciation was 68 crores. For the rest of the year, you know, maintenance capex would be in line with what we have done in earlier years. And we will be doing some growth capex as well. Especially we are seeing a lot of demand for medium term from the tissue culture planting metal division for the urban piping scenario. But we still believe that overall capex would still remain in line with the overall depreciation for the company.
In food business, we are seeing some opportunities for contract manufacturing. We are working on those. And I think by the time we speak about those next board meeting, sorry, next result meeting, we will emerge with more clarity how that is going to evolve. But we started working on that. We are also seeing newer irrigation opportunities where some large players are working on this compressed biogas and some other things where they need to grow biomass before creating gas which requires irrigation. So we think that would be an interesting application of our technology and a likely business opportunity in that sector.
And exports have been doing very well and we continue to have good export orders and maintain good level of growth in exports also. So exports positive going forward. Solar positive. Drip irrigation along with the new application I think would continue to do well because as a country our energy economy changing and I think water plays a role and irrigation plays a role because lot of fuel generation people are now talking using the agriculture crops. So that’s where we can play an important role. The JJM has still not really picked up in the current quarter. Also some places it is there in some states where we are not a direct supplier, but we indirectly supply pipe.
But it is quite competitive pricing. So some of that business, because it is so competitive we have let go. But what business we could capture, we are staying profitable in that business. So I think this is the background. Reasonably good quarter, second quarter is slowest quarter, usually September for us. But we are really looking at a very strong H2 on a reasonable first quarter. If you look at six business product lines, we have right drip and sprinkler doing well. Piping was weak but should pick up in the second quarter. Plastic sheet has done well which is our overseas business.
Primarily tissue culture has registered good growth for us. Solar pump is doing very good and food processing business was even and should India business will remain even but the overseas business will continue to grow especially on the spices side. That’s what we are looking at. We are looking at a growing year, profitable year with good three to five year growth scenario. We feel confident and positive that we have all the right, what would you say ingredients to create a good recipe or right building blocks to build a good journey going forward. Not just in terms of revenue growth but earnings and positive cash flows also.
So with that I would take a break and we would like to invite any questions you may have. Thank you again.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Sharon 1 on the touch tone telephone. If you wish to remove yourself from the question queue you may press star and do participants are requested to use answers while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue is. The first question is from the line of Nigel Maskeranas from Everflow Partners. Please go ahead.
Nigel Mascarenhas
Good afternoon sir. Thank you. For the opportunity. A couple of questions from my end. Firstly, what sort of revenue and EBITDA. Number can we expect to reach at. The overall level in the next three years?
Anil Bhavarlal Jain
Okay, so second question. So I’ll answer both.
Nigel Mascarenhas
My second question was out of this, which segment would be leading the growth. And what would the EBITDA margins for. Each of these three broad segments look like by then, say three years in the future.
Anil Bhavarlal Jain
Okay, so it’s a good question, a broad question. Right. And it’s a link to the future. So you know we need to take it with whatever qualification we could need. But we are, you know last year I think overall we as a company did 5,800 crore approximately revenue and we are targeting overall, you know, growth in that 15% plus. So when you take into that that means business in three years in terms of opportunity. Right. The opportunity is that you could between three to four year type of scenario you can definitely double the size of the business.
If you look at five years you have a chance to make it two and half three times. So that’s the opportunity because we had recently worked with a large consulting firm as well to look at what is the opportunity out there and whether Jain can Win in that opportunity. And the answers to both are very positive. Now when I look at which segment will grow more. So each segment is going to grow some less and some more. So we see piping segment to grow quite a lot, maintain 15, 17% growth definitely. We see irrigation to also maintain 12 to 14% growth based on in a combination of exports and new value added applications.
We expect plastic sheet business which is overseas to continue to grow at 8 to 10% because in that business, in those local economies as you know, are growing 2, 3% only. So 8 to 10% growth is quite good from that part of business. Solar pump business, we used to do a lot of solar pumps earlier and we have recently started again. During this exception period we had walked out of that business. We think that business could grow substantially over next two to three years because opportunity is quite large under the Kusum Yojana of the government of India.
And food processing business with additional capacity utilization of spices, some contract manufacturing also should grow quite well. So I think, you know, on an average we would like to maintain a 15% growth. Some of the other things come and kick in. You could achieve beyond 20% growth. If you do 18% right compounded or five years you double the business. If you do 20% you can double in three, three and a half years. So I think that’s the structure we are going. We have good production capacities, some specific product verticals. We might have to invest growth capex.
But I think normal pipe or drip. I think we can grow next two to three years without any serious capex only maintenance. Capex will do quite positive.
Nigel Mascarenhas
Understand. And can you throw some color on. The EBITDA as well at the overall. And segmental numbers as well.
Anil Bhavarlal Jain
So I think overall EBITDA right this year we did about 13% and the breakup. If you see high tech is 16 plus and plastics is 10 plus and agroprocessing 11.8. So when you project this right, globally speaking, all food processing companies are about 12 to 13%. I think that’s what would be maintained in that business. In plastics we have been between 8 and 10 historically. But as we utilize better production capacities, higher growth rate, I think we can hit 12 to 14% window there. We are still not there yet in high tech I think we would maintain this 15 to 17%.
An extraordinary year. It could go to 1820, but I think 15 to 17 would be so overall idea would be to stay between 13 to 15, I think 15% EBITDA on consol business combined I think would be good level Very good. Level 13 we must achieve definitely any year, but I think we will be inching towards 14% going forward.
Nigel Mascarenhas
Got it sir, thank you for the. Opportunity and wishing me the best.
operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Hemal Trivedi, an individual investor. Please go ahead.
Hemal Trivedi,
Hi sir, can you throw some line or light on value monetization? You know, hearing it for such a long time now and kind of, you know, it’s not moving forward. That is, that is my first question on value monetization and the second question is on the eps. Like from investors point of view and from the share price point of view, what matters is kind of the eps. So that is stagnant from quite a long time now. So what is the plan in order to kind of grow the EPS so that the investors like us can benefit as well? These are my two questions.
Anil Bhavarlal Jain
Yeah, so I think again good questions. In terms of value monetization, I think we have recently started working seriously on Food Processing Co. Which is a subsidiary and you know, depending on preparation, the market, underlying performance, you know, sometimes in 26 there is a good possibility that you would see value monetization of that business. In terms of eps, you know, that is something we are working on. As you know, we have gone through almost. We’ve kind of lost half a decade, right between 20 and 25. And I myself feel that pain and pinch not just as a shareholder, but as somebody who is responsible for delivering results for shareholders and other stakeholders.
I think what work we have done, right, changed our business model and how it functions, we have stabilized. A lot of things got cleaned up from the restructuring period. So that’s behind us now and we are looking at super growth over the next five years. And as we solve the balance sheet issues, maybe over the next 12 months, I think thereafter you will start seeing EPS because I think EBITDA has done well, would continue to do well going forward. But still whatever we earn today, get absorbed through the servicing of the debt, depreciation, etc. And then not much is left for the shareholders as we go along.
I think from FY27 onwards you will start seeing measurable improvement in EPS because that’s the ultimate goal.
Hemal Trivedi,
Thanks for. If I can ask one more question, if that is fine.
operator
May we request you return to the question here for a follow. Thank you. The next question is from the line of Amita Gicha From N. Please go ahead.
Amit Agicha
Yeah, good afternoon sir. Thank you for the opportunity. Now my question was connected to the equity infusion. The what portion of the decent equity was from promoter versus institutions and will this, will there be any further infusions plan?
Anil Bhavarlal Jain
So the current inclusion which happened almost I think out of 150 crores 1 3rd came from promoters and remainder came from the institutions approximately in line with the warrants which were issued earlier. So as of now there are no outstanding warrants. But as companies getting on this huge growth because as I described we see all the six businesses firing going forward over the next few years might require some additional support on the working capital side. So at appropriate time I think post discussions with our board we’ll be informing all the stakeholders of how we plan to raise any additional funds for that purpose.
But as of now the focus is on underlying cash flows, recovering old receivables, continue to repay the debt, long term debt and bring it down and improve the eps.
Amit Agicha
Yeah this second point was connected to the balance sheet like as you’re saying like long term debt cable it’s Almost like almost 4000 crores is the balance borrowing class from last 2014 onwards. And I think so we are also having investments of more than 1200 crores. So is it would be possible to sell off the investments and repay the debt so as to cut down the interest cost?
Anil Bhavarlal Jain
Yeah so if we you know so if I look at my debt right and we have given the debt the details in our investor presentation also. So you know and I’ll just take two minutes of 50 years time. Total debt for the entire group is at about three and a half thousand crores right now out of this 3500 crores debt the long term debt or term debt is close to 1500 crores now sorry about 1500 crores. Now that 1500 crores has about 800 crores debt is 0%. The remaining 700 crore rupees debt is you know at let’s average 9 to 10%.
And that is being repaid as we speak. In next nine months alone 250 crore that debt is due which we’ll be paying. So on the term debt the date I think as it stands the entire 1500 crores almost by March 20th all will become zero in normal crores through internal recovery. In terms of if we do any value monetization. So for example I talked about the food company next year any of such opportunity we can instead of waiting till 28 we can finish that before 27. So we are on that path. Now rest of the debt what you see approximately 2000 crore debt is working capital debt where about 200 crore would be the overall interest in the year.
Currently that debt is required because when you see individual nature of businesses whether food processing or irrigation or pipes etc. Etc. Some of them are working capital intensive businesses and that debt is required to support the working capital. But as far as term date is concerned we are very clear that that should go away earlier than later. Max three years, maybe 18 months is what I was planning.
Amit Agicha
My question was connected to investments also Are we generating more on investments rather than reaping on the cost savings which will do on the debt.
Anil Bhavarlal Jain
So investments are two, right? One investment is a major investment. It’s a food processing company and I talked about already IPO next year and our investment in food processing company let’s say it’s about 6, 700 crores somewhere around that we are hoping IPO value is from 3, 4000 crores. So I think we can definitely get far more than what we invested when we do value monetization and the rest of the investment in the overseas subsidiary which we did when we reduced our debt by 2,000 crore outside India and we merged our business so part of that equity is still there and value monetization of that won’t happen now.
One has to wait for 2, 3 years depending on the scenario there what happens there. But whatever investment you see on the books I think in terms of again idea is that in next one to two years through value monetization that will come in to help reduce the debt.
Amit Agicha
I appreciate answering elaborately sir. Hopeful. All the best for the future.
Anil Bhavarlal Jain
Sorry.
Amit Agicha
All the best for the future.
Anil Bhavarlal Jain
Thank you. Thank you. Thank you.
operator
Thank you. Participants who wish to ask question may please press star and one now the next question is from the line of praneet and individual investors. Please go ahead.
Unidentified Speaker
Hello. Thank you for the opportunity. So I think we did a great job in terms of generating more EBITDA and all of that. So I was curious on the front of in terms of expansion on the ground for the piping segment and micro irrigation segment. So basically we have our dealers level has been constant for the last couple of years and I understand this churn but how are we able to expand on that front and what are the strategies? How successful are the strategies in terms of expanding that particular. And in the last concur you mentioned about urban expansion also pipes going into urban territories and all of that.
So how is that going at the moment?
Anil Bhavarlal Jain
So I think in Mis and pipe, right? Where we sell through the dealers we have been, while number might remain the same, but we have kind of weeded out a lot of inefficient dealers and more focused on efficient dealers. And some of the ineffin dealers we have gone. We have got the new dealers in the existing areas where we sell quite well, which is like Maharashtra or southern India and western India, where we have added dealers is in northern India on eastern, on northeast parts. And you know, I think there the original business numbers are small, right? But for example, this quarter alone in east we have grown 63%.
On a smaller number in Northeast we have grown 200% again on a smaller base. So that shows that the work has started there and the dealers have started delivering results. But it’s a process, right? Because it is not that just you appoint the dealers and you will have sales. You are changing the concepts of the farmer in terms of how they go about. So it has taken us few decades here to build this dealer base in the existing areas, which we are strengthening to sell more in existing areas. But now that we are into new era of technology, I think things would move much faster earlier.
What has taken 20 years, I think can be done now in three to five years. So we are very confident that in next three years, for example, the east, northeast and north, which is hardly 5% of our sales in past would become at least 15 to 20%. They would grow that much three or four times and with a larger growth, including growth in the existing areas. So there we are quite strong, positive. And you know, come 2122, right? We changed business model to dealers. We used to provide 120 days credit and we said, no, no, now you pay cash in advance.
Then only I’ll supply you. And you know, it took a hit, right? And now the business is also back to the same level it was before when we were doing 120 discrete. Having achieved this new business model and got everybody comfortable with that model, where still everybody makes money and willing to do it. Now we are going into the additional growth into existing areas on the new model. Your second question about the urban market. Urban market. We have been working to ensure that we have the new dealer network as well as a complete range which is required, which is different than let’s say our existing range.
Right? Some additional things are required. So you would see when I talk about December and March results, we will be able to share with you more precise details about what gains we have made. It is a tough market because there is a very entrained large players in that market. But Jane has necessary technology and the brand, especially in tier 2, tier 3 cities, I think we would succeed much faster, but it is going to take another two to three quarters.
Unidentified Speaker
Understood. So I was wondering one more thing. Is the tissue culture segment that has a high beta margin, but it’s been contributing, I feel like the incremental EBITDA growth. So how, what are the limitations that can hinder? Because we are projecting a very high growth rate going forward in the next two to three, three to four, three to five years. So I was wondering what are the limitations that might hinder that particular growth? And in terms of geography, because it’s a bioproduct, is there any limitation in terms of distributing the product across the country? Or are we very concentrated in Maharashtra? Can you give an idea about that?
Anil Bhavarlal Jain
Yeah. So you know, tissue culture is a biotechnology product. So you make planting material from the stem of the tree or from the tissue. So our core lab is headquartered here in Maharashtra. But then due to hardening, semi hardening that you can do in the field. So you need to have greenhouses and shared houses. So we do some work, for example in our Karnool facility to cover the southern India and we do some work in our Alwar facility which is in Rajasthan to cover northern India. So when the core lab will remain here because you need to secure mother nursery and you need to have all the protocols, but the first primary and secondary level of hardening will be done in the field closer to the market.
In terms of our customer base today, whatever banana plants we sell, most of them are in western and southern parts of the country where banana is prominently growing. While pomegranate we are doing in western India as well as, you know, we have big market in Rajasthan also. Plus now, you know what we are doing on potato, potato seedlings there, you know, while we are getting them grown, you know, apart from the lab work, what we field work in Punjab and Haryana, our markets are more into places like Gujarat. And so it is becoming a national business.
It is not remaining purely regional. You asked a question about what are the likely hurdles in the growth opportunity. So we have seen, for example, banana opportunity is very big because farmers are making more money. Recently there was a news that mango is no more a king. Banana has become king because with the help of our tissue culture, farmers are really making money as a country. We are exporting four or five thousand crore rupees a banana and that creates more demand for our tissue culture products. So we do not see demand as an issue. But you know it’s a bioproduct, right? It’s a tech product.
And you know, in the open area with the climate change there could be things like diseases which will come on with the product, which will not come from our source material but can come from air for example and it can have impact on the farmers. So some of those risks are inherent to the business or to any agriculture, planting material or seed type of business. And we are working to see how do we protect ourselves or our customers from those. It’s a medium to long term issue, structural issue. But apart from that I think production capacity.
And how do you ensure that? Normally earlier farmers used to plant for example banana only two or three months. Now we have worked with farmers in different regions so that they plant bananas over 10 month period. So then we can continuously produce every month and supply next month and so on. So I think that type of work which we have been doing fundamentally was changing how the whole agri economy works for that particular product. I think is creating very positive results and some of the challenges will come. I would not discount those challenges but you know, I think we are aware of those working, you know, through as much risk mitigation we can do and still manage growth.
Unidentified Speaker
So we can start. We are still on the track of reaching thousand in the next three to five years.
Anil Bhavarlal Jain
Yeah, yeah, yeah.
Unidentified Speaker
So I’m sorry, just last question. Regarding the agro processing division, I understand that we have various products, which fruits is a major part of it and from India I think it’s mango. But internationally how are we seeing overall demand? How is the overall food inflation and impacting our capacity? Is it a benefit for us or how is it affecting us our international production facilities and how do we predict the growth of international versus Indian agro processing division groups?
Anil Bhavarlal Jain
So India, right. I think mango is one measure and on the vegetable side onion is another major product for us. We are seeing, you know, when we establish China and what is happening with China and mixed trust around the world, we are seeing there is a large opportunity for garlic as a product and we are working on it. But again or next two, three years it could become a larger product for us. Already this year I think we are going to do good amount of new garlic work. Garlic we have been doing in past but small.
I think it is now getting into some recognizable space. Internationally speaking our business in UK is doing very well. It’s growing phenomenally well. The business in I think even Belgium and Europe is doing similarly well. Business in US had slowed down because of the whole tariff changes. You know, people were just being cautious over the last few months and we have to wait what happens in Northern America or next quarter or two, some of this just will settle down on what happens to Mexico, what happens to imports, exports, et cetera. And then it will become more clear what grows into us.
The other division which is quite small for us which structurally should go globally is spices. Well, we do quite good in spices in our Belgium and UK business but we have not been done much actually out of India. So future growth for India, this business will come from spices as well as garlic. Major growth, international market. I think our European businesses will continue to grow. And in our European business today we are operating only in four countries. You know overall EU is 27 countries. So we see growth opportunity there as a combination of vegetable and spices.
Unidentified Speaker
Understood. So in terms of last question, in terms of our cash flow.
operator
Mr. Praneet, may we request you to turn to the question here for a follow up question?
Unidentified Speaker
Sure. Thank you.
operator
The next question is from the line of Madhurati from Counter Cycling Investments. Please go ahead.
Madhur Rathi
So thank you for the opportunity. So I wanted to understand regarding the government receivables and sir, what is the status of that and then because when we spoke to you earlier that we were expected to get it by anyway then. So what is the status of that currently.
Anil Bhavarlal Jain
Overall I think government receivable, you know what we received in the current quarter and since then in fact in July was almost amount of the sales which we had done. That is what we have been able to cover because we were closing a particular project. That’s why the billing had gone up as you close the project. But I think we are on track, right? I think what guidance we have given earlier also that by mid 26 we should receive most of old government receivables and that is 5 to 700 crores. I think that will still come through because it all is linked to one our ability to complete the last milestones which we are doing one by one second is the availability of funds with the state government because these are sanctioned projects so that should be available.
But some of the state governments delay because you know they are giving a lot of this free money here and there. They do not pay contractor. You might have been reading newspapers instead like Karnataka, Maharashtra. So there could be some delays due to that. But when I talked about that it is going to take one year plus somewhere around that time to recover this money. We already factored in some of these delays. So if it happens earlier, well and good but Otherwise, over this 12 months, 5 to 700 crores should flow back.
Madhur Rathi
How much money did you get in SI26. And what is the overall amount? That is.
Anil Bhavarlal Jain
I think overall amount on the project side is about 750 approximately. And out of that I think at least 350 should happen before March 26th.
Madhur Rathi
Got it, sir. On the food processing side, sir, it seems that our tissue culture capability is very strong because there’s a company called Hyphen Food where they do contract manufacturing as well as processing. So do we have any plans of. Doing an integrated food processing for our business or. We haven’t thought on that trend yet.
Anil Bhavarlal Jain
We are working on some of those issues. I think more clarity will emerge over the next three, four months. But we want to see that our capacities get utilized through the year and we have built a lot of infrastructure. That infrastructure should get fully utilized. And I think some of these integrated contract manufacturing type of scenarios we are also looking at and we will have more clarity in H2 on that, how it evolves. But it is something, it is definitely on the card because it is a very seasonal business. Right. So you must find way of using the capacities through the year.
Madhur Rathi
Sir, what. Kind of working capital requires. So thank you so much. Thank you.
operator
The next question is from the line of Prashant, an individual investor. Please go ahead.
Unidentified Speaker
Hello. Is my voice recordable?
operator
Yes, please.
Unidentified Speaker
Yeah. So my first question is. Of the. Of the high tech and the plastic division. If you see quarter and quarter inch, there is a growth in high tech and in plastic there is a degrowth. So I mean, can we further break it down into, I mean what has been the volume movement and what has been the price movement? Have we taken any price hike if we see on a yoy or a quarter, on quarter basis.
Anil Bhavarlal Jain
So I think in terms of, you know, high tech business, right. High tech business comprises of three major products. Drip and sprinkler. It’s also tissue culture. It’s a solar pump. So solar pump have grown. Drip irrigation and sprinkle irrigation has grown. But you know the SKUs there are like thousands, right. So it is difficult to talk about the volume growth there. In the plastic side we have a degrowth which is the volume as well as the pricing, both because pricing because raw materials came down and the volume because early monsoon starting from mid May, you know, we lost Almost, you know, 20, 25 days of the season.
So that was the reason of the reduction in the plastics volume.
Unidentified Speaker
And on the agro processing, I mean, how you been? I mean like, because the food inflation is generally sometimes high, sometimes benign. I mean, so have you benefited from it? I mean, how has it played out for us?
Anil Bhavarlal Jain
So food, that’s a good point you’re making. So not only benign, right? Right now this was a deflationary. Onion prices at wholesale level, where we buy white onions prices were quite low this season post April mangoes, I think we saw the lowest price in last five to seven years in this season. Now that also impacts your sales, right? Because you’re selling at lower price because the raw material has gone down so much. But overall I think what that means is that also it will create demand going forward because overall pricing goes down, people are willing to stop more or place more orders for longer seasons.
So overall it should be beneficial. But whether it was aberration that there was so much of supply and therefore prices were down, or whether next season again something happens totally opposite to what happened now, one has to see because you know, food goes from inflation deflation, especially on some select commodities. But right now the environment is quite benign and deflationary, which impacts our overall revenue. But I think going forward it should help us improve margins.
Unidentified Speaker
And my second question is rather an accounting question. If we see the segment as a segment results on a consolidated basis, you have unallocated assets of around 1800 crores, which is a large number. Now I understand there could be some corporate assets and corporate office and you know, the salary of the senior management and executive directors which cannot be allocated. But still 1800 crores of unallocated assets is a large number. So what would be the main items in that? Because I mean this, when we see the segment wise profitability or roce, such a large item in unallocated assets discards the picture.
Anil Bhavarlal Jain
Yeah, I think that’s a good question. But you know, as a company, right, for the rd, which we do and so on, we have large amount of land between what we have here in Maharashtra or in Tamil Nadu. And the total land goes into thousands of hectares. And the value of that land is something we don’t allocate specifically to either drip business or tissue culture business or pipe business because all the businesses get benefit of that particular. So that’s the major segment. What you see on the asset side, on the liability side, the loans because they are at corporate level and the investments we have made, for example investment in food business or overseas business, which we have, they remain balance sheet side unallocable, but normal expenses or normal assets like plant building or manufacturing, or the people cost etc.
They are fully allocated properly to individual divisions. We are very focused on that in measuring each division properly in terms of its P&L, ROC etc. But some of these like land etc. That that remains unavocable.
Unidentified Speaker
Just like I mean there is a piece of land and where we are doing a project for all the few divisions. But again I mean let’s, I mean some method, let’s say if you’re doing 10 projects out of which five projects are for one day division and three for another and second for the third on some basis if we can allocate the assets to the individual division, it would help us as investors also to see how much resources have been used by each division as well as each division would also get to know that. I mean because as of now, since it is an unallocated, the division feels that they are hardly using capital whereas the reality is otherwise.
I hope you get the gist of what I’m alluding to.
Anil Bhavarlal Jain
Yeah, I get the gist. We will study this matter, right? We’ll talk to the auditors, we’ll study, see what can be done. Again let the land which is valued somewhere around 15, 1600 crores on the balance sheet approximately. Now we did not spend that kind of money to acquire that land, right? What has been spent, money spent over a long period of time might be 100, 200 crores. So this is five, seven years ago when the accounting standards were changing. The fair value was land was required to be put and that is how that has come.
So it is not that that level of physical investment has gone in from the company side but we will try and see how we can allocate the land value.
Unidentified Speaker
Understood sir. And wish you all the very best for the coming quarter.
Anil Bhavarlal Jain
Sure, sure. Thank you.
operator
Thank you. The next question is from the line of famous an individual investor. Please go ahead.
Hemal Trivedi,
Michael. Question is again two things. One is kind of, you know, you mentioned about further equity revolution. My, my kind of sincere request would be to kind of, you know, have a careful, you know, reconsideration on equity dilution. Because what happens is that equity dilution then kind of adversely impacts kind of the existing investors. I have been invested in 2018 still now and trust me, still leading a lot, forget about getting a return out of it, but still leading. And from 2018 when it was 42 crore kind of issued capital, so now it is kind of, you know, 72 crore already kind of a lot of.
So you know, just would kind of suggest to be very mindful on that and then your follow up thoughts on that and the second thing, again a follow up question on the finance side of it, the market cap, if you see sir, kind of, you know, it’s only 4,000 crore and kind of, you know, having invested since past seven years and very closely kind of, you know, monitoring each and every quarter results of Gen education and kind of, you know, knowing its legacy, trust me, kind of sir, if we manage the finance very well and kind of, you know, utilize some of these assets which we are talking about and kind of, you know, do the value monetization and you know, you know the company can become debt free and virtually kind of in the one year, one and a half year maximum and kind of, you know, the investors can get a return.
But right now what is kind of, you know, as an investor I can tell you what the feeling which we get is that we are, you know, the company is doing business for the bank and not for the investors. So this is one area where kind of, although it’s a great turnaround story from debt restriction side of it, but kind of this is really impacting the investors a lot.
Anil Bhavarlal Jain
So you know, I agree with your sentiment and not only agree with it, I empathize with the sentiment. We do not wish to do, you know, raising equity for the sake of equity and of course we do not want to run the business to be unpaid employees of the bank. Right. So that is clear for us as well if we do equity. And that would be after thorough serious consideration only if it can be extremely value accretive. Right. Because you know we are sitting right now, you know, after going through a painful restructuring period, after changing the business model, bringing down debt from 7,000 crores to three and a half thousand crores, we have done all that.
Now I think when you look at all our six major product lines, I think we are sitting on a technology platform, brand equity ability and intent to have explosive growth over the next three to five years. Now to kick start that growth if equity is required, I think that would be in interest of all the shareholders because rather than just staying in currently like this, we give it a shot because underlying strength company possesses in the marketplace are really very good and we are in leading position and we need to harness all of that goodwill and good work which we have done in the past to create extraordinary value for the shareholders.
So please be assured that we are taking any step, we take any is a very careful choice and creating value of shareholder is the ultimate thing we want to focus on. And of course we just don’t want to earn EBITDA and pay all that into interest. So repaying any ICOS debt is a part of that story. And as I said, we have brought down debt by 50%. We will further bring it down and then small amount of whatever debt left would be working out of debt which can be easily sustained by the business. So idea is to continue to work for the shareholders in the right way.
But we are coming out of a very painful five year period. But we are looking forward to very good next five years. Thank you for your support and thank you for your patience.
operator
Thank you ladies and gentlemen. Due to time constraints, that was the last question for the day. I now hand the conference over to the management for closing comments.
Anil Bhavarlal Jain
Thank you again to all the participants. I think we have tried to answer all the questions in a comprehensive way. These are I think good times. Companies in a strong position going forward. Looking forward to really good growth for next three to five years. And again all businesses seems to be having sweet growth especially because of again our technological strength or brand strength. And the businesses we are in that space itself will continue to grow. And we have ability to grow in India, we have ability to grow outside India, we have ability to grow adjacencies, you know, backward forward integration.
So I think everything is possible and that’s good thing. But we want to be, you know, disciplined financially in terms of balance sheet, bring down the leverage definitely in terms of debt to EBITDA, you know, at one time it was 6. I think it is down to 3 and a half now. The idea is very soon in next 18 take it to less than 2. So that’s where, that’s where we are working. We again thank you all shareholders and all the listeners and analysts and other people for your support to the company. Thank you again.
operator
Thank you on behalf of the Achiokshi Private Finsor limited that concludes this conference. Thank you for joining us. And you may now disconnect your line.