Dixon Technologies is the largest home-grown design-focused and solutions company engaged in manufacturing products in the consumer durables lighting and mobile phones markets in India.
The company’s revenue during the quarter jumped 90 per cent to Rs 1,405 crore from Rs 741 crore in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortisation) margin improved 10 basis points (bps) sequentially and unchanged on yearly basis at 4.7 per cent.
The company is optimistic that H2FY20 (October-March) will be better than last year, despite a general slowdown, due to new customers’ acquisition, expansion in scale of operations, and increase in the original design manufacturer (ODM) mix.
Analysts at Dolat Capital were conservative until H1FY20 results, in terms of revenue visibility of lighting and washing machines, due to the slowdown compared to last year.
The company is reporting continuously strong numbers on the back of robust growth across the segments, especially in consumer electronics, lighting and mobile business. The management’s focus remained on the client addition, backward integration and capacity expansion to meet the growing demand, according to analysts Narnolia Financial Advisors.
During the quarter, Dixon Technologies has acquired Samsung as client for mobile manufacturing and is in advanced stage of discussion with 2-3 large customers. Additionally, with increased size and scale in lighting business, the company is targeting the global markets. We believe that the company’s focus on client addition, backward integration will result into sustainable growth going ahead, the brokerage firm said in a result update.
At 02:26 pm, the stock was trading 10 per cent higher at Rs 3,294 on the BSE, as compared to a 0.18 per cent rise in the S&P BSE Sensex. A combined 320,168 shares changed hands on the counter on the BSE and NSE so far.