Earnings Review
Dixon Tech consol PAT rise slowest in 3 qtrs, misses view
This story was originally published at 19:09 IST on 20 January 2025
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--Dixon Tech Oct-Dec consol net profit INR 1.71 bln
--Analysts saw Dixon Tech Oct-Dec consol net profit INR 1.95 bln
--Dixon Tech Oct-Dec consol net profit INR 1.71 bln vs INR 964.4 mln yr ago
--Dixon Tech Oct-Dec consol revenue INR 104.54 bln vs INR 48.18 bln yr ago
--Dixon Tech Apr-Dec consol net profit INR 6.95 bln vs INR 2.73 bln yr ago
--Dixon Tech Apr-Dec consol revenue INR 285.68 bln vs INR 130.33 bln yr ago
--Dixon Tech Oct-Dec consol EBITDA INR 3.98 bln, up 113% on year
--Dixon Tech Oct-Dec consol EBITDA margin 3.8% vs 3.9% year ago
--Dixon Tech Oct-Dec consumer electronics revenue INR 6.33 bln, dn 32% on yr
--Dixon Tech Oct-Dec lighting products revenue INR 2.01 bln, up 7% on year
--Dixon Tech Oct-Dec home appliances revenue INR 3.15 bln, up 9% on year
--Dixon Tech Oct-Dec mobile, EMS revenue INR 93.05 bln, up 190% on year
--Dixon Tech Oct-Dec mobile, EMS revenue contribution 89% vs 67% year ago
--Dixon Tech Oct-Dec mobile, EMS operating profit INR 3.2 bln, up 210% on yr
MUMBAI – Despite posting another quarter of strong earnings growth, aided by robust traction in the mobile segment, client additions, and growing demand for exports, Dixon Technologies (India) Ltd. has failed to meet the Street's expectations for the December quarter due to a sharp increase in expenses. The company posted its slowest bottom line growth in three quarters in Oct-Dec, and its top line growth also slowed from the last quarter, despite the latter growing over twofold for the third consecutive time.
Dixon Technologies' consolidated net profit for the December quarter rose 77.3% on year to INR 1.71 billion, lower than analysts' estimate of INR 1.95 billion. The company's consolidated revenue for the quarter rose nearly 117% on year to INR 104.54 billion, beating expectations of INR 96.78 billion by a wider margin.
The company's total expenses for the December quarter rose twofold on year to INR 101.79 billion. The INR 95.81-billion spent on materials consumed comprised over 94% of the expenditure. Expenses on the cost of materials rose 1.5% on year. The company's expenditure pertaining to employee benefits, depreciation and amortisation expense, and finance costs, also rose on year.
For the nine months ended December, the company's bottom line rose nearly 155% on year to INR 6.95 billion, while the top line rose over 119% on year to INR 285.68 billion.
The electronic manufacturing services giant's consolidated earnings before interest, taxes, depreciation, and amortisation, or EBITDA, for the December quarter rose 113% on year to INR 3.98 billion. Its consolidated EBITDA margin for the quarter fell slightly to 3.8% from 3.9% a year ago.
SEGMENTAL PERFORMANCE
Revenue from the mobile and electronic manufacturing services segment rose 190% on year to INR 93.05 billion in the December quarter. The contribution of this segment, which comprises the majority of the total revenue, rose to 89% from 67% a year ago. The operating profit from this segment tripled on year to INR 3.22 billion.
Revenue from the company's home appliances segment rose 9% on year to INR 3.15 billion. However, the contribution of this segment to the total top line declined to 3% in Oct-Dec from 6% a year ago. Revenue from the lighting products segment rose 7% on year to INR 2.01 billion. The contribution from this segment, too, halved to 2% from a year ago.
Meanwhile, revenue from the company's consumer electronics segment, which is the second largest for the company, fell 32% on year to INR 6.33 billion. This segment contributed only 6% to the total revenue compared to 19% a year ago.
Dixon Technologies reported its earnings for the December quarter after market hours Monday. Shares of the company closed at INR 17,559.45, up 1.9%, on the National Stock Exchange on Monday, in the green for the fifth session in a row. End
Edited by Deepshikha Bhardwaj
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