Mahindra EPC Irrigation has received an order from the office of the assistant engineer of a water user association for the supply of pressurised micro irrigation systems covering 3,591 hectares.

The contract is valued at approximately Rs 179.5 million (mn) and is to be executed over a 12-month period.

The order has been awarded to a domestic entity and the company indicated that the contract does not involve a related party.

The company stated that neither the promoters nor promoter group companies have any interest in the awarding entity, confirming the transaction does not qualify as a related party transaction.

Mahindra EPC Irrigation is engaged in the manufacture and sale of micro irrigation systems such as drip and sprinklers, agricultural pumps, greenhouses and landscape products.

In the December quarter the company reported consolidated net profit that rose two point two zero per cent to Rs 64.9 mn, compared with Rs 63.5 mn in the year ago quarter.

Revenue from operations increased 14.75 per cent to Rs 934.7 mn in the same quarter, against Rs 814.5 mn posted in the previous year.

The improved top line was presented as reflecting higher sales across product lines.

Market reaction saw the company’s shares fall three point nine one per cent to trade at Rs 108.10 on the BSE.

With the order scheduled for delivery over the next 12 calendar months the contract provides material incremental revenue visibility without altering related party dynamics.

The company’s continued focus on micro irrigation solutions underpins its positioning in the agricultural equipment sector.