Dixon achieved remarkable results in FY 2019 boosting 5% growth in revenue toर. 299008 lakhs
D E A R S H A R E H O L D E R S
Dixon has been earnestly committed to reach the highest echelon of success since itsinception. The team at Dixon is a pool of dedicated smart and talented individualsbrimming with the prospects of enabling the company to achieve more with each step. Thisis exactly what we at Dixon have triumphantly effected for the past fiscal year and havebeen able to transform budding thoughts into acts of success.
The year has been exemplary for Dixon in terms of performance and results. Catering tothe needs of our stakeholders is an agenda of paramount importance and we have beensuccessfully capable in meeting the requisites of value creation for all. For ourshareholders the plan of action concerning the delivery of differentiated value wasstreamlined through the economies of scale shifting towards the ODM model and focusing onbackward integration whereas for customers we created value by leveraging superiortechnology in creating innovative product offering.
However 2018-19 was yet another challenging year for electronics manufacturers interms of depreciating rupee value and hardening commodity prices in the first half of theyear in the domestic market. Post the arrival of the festive season and GST rate cuts theindustry saw an upward trend. Nevertheless with discrepancies in global trade India isexpected to emerge as a major electronic manufacturing hub globally giving opportunitiesto manufacturers like Dixon to expand our business footprints in the domestic as well asthe international market.
Despite all the volatility presented by the market conditions Dixon achievedremarkable results in FY 2019 boosting 5% growth in revenue to H 299008 lakhs. Thegrowth in revenue was robust across the majority of our segments with the consumerelectronics segment having maximum share of 40% followed by lighting solutions with 30.8%share in total. With the changes in cost structure we were able to maintain healthyEBITDA and PAT margins. Our ODM business contribution has increased as compared toprevious year representing a significant shift over last year.
Our strategy of backward integration has borne fruitful results across segments. Thishas resulted in healthy margins strengthened relationship with customers and enabled usto enter the global market. During the year under review we added many top-notch clientsacross most of our verticals including in the ODM segment. We were able to reach amongstthe top five manufacturers global in terms of scale in LED bulbs and offered the largestbouquet of the ODM model in the washing machine segment.
We continue to put efforts in enhancing strengthening and integrating our standard forhow we conduct our business across all our operations and stay true to our vision ofempowering society.
We at Dixon continue to focus on fostering internal growth and seize marketopportunities in consumption and technological upgradation. On the technological side wehave installed SAP to drive efficiency and improve the information flow in theorganisation. Investments for improving the quality of our products with an aim to achievezero defects have been continuous and remain solid. With regard to the same we haveadopted six sigma projects and continuously monitored our customer complaints which haveresulted in reduction in process rejection of goods as well as return of goods.
As a modern business organization our aim is to build a user-centric business modeland an innovation driven organization with amplified investment in R&D. We have beeninvesting in capacity expansion productivity improvement in almost all the segments anddevelopment of smart solutions in order to accomplish our vision of being aone-stop-shop-solution' in our areas of operation.
The upcoming year rings a note of optimism in us owing to a plethora of positives -firstly we have completed backward integration in the washing machine and consumerelectronics segment and the order book for the same is very healthy. Secondly in thelighting segment we have been successful in building a large scale and have been migratingmore towards the ODM model and are planning to explore the global market. Lastly themobile segment has favorably been providing us many opportunities in terms of top brandsoutsourcing their production opportunity to shift towards the ODM model and possibilityof backward integration in this segment.
Apart from financial prospects Dixon has an ambition to responsibly contribute towardseconomic environmental and social development in our areas of operation. The key to beinga responsible business is to create long-term value for all our stakeholdeर. In2018-19 we made significant contributions to our society as a part of our CSR activities.These activities included active contribution in the field of child education well-beingof the senior citizens and eradicating hunger and malnutrition. We continue to put effortsin enhancing strengthening and integrating our standard for how we conduct our businessacross all our operations and stay true to our vision of empowering society.
Our strategy for the coming year would be to diversify our product pipeline and enterinto newer segments to capitalize on the growing market opportunity in domestic as well asinternational market. In the washing machine segment we plan to enter intofully-automatic washing machine. While in the lighting business we further plan topenetrate the street lighting market. We also plan to swift towards the ODM solution formobile segment as well.
On behalf of the board I would like to take this opportunity to express our heartfeltappreciation to all the employees of Dixon for their invaluable contribution to thecompany's success. I would also like to thank the board and the board members for theirwisdom guidance support and dedicated efforts. I would also like to extend my vote ofthanks to our shareholders business partners and other stakeholders for their ongoingengagement and support.
We look forward to many more years of innovation rewarding experiences and greateroperational efficiencies and as one of the leaders in our industry space we shallcontinue to invest in organic growth R&D and scaling-up our business. The path of ourevolution to become a global enterprise and to achieve a double-digit operating margin islong and arduous. However we are making steady progress towards our goal and remainresolute in our resolve to speed up the actions needed to realize these ambitions.