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Dixon Technologies (India) Ltd.

BSE: 540699 Sector: Consumer
NSE: DIXON ISIN Code: INE935N01020
BSE 00:00 | 28 Jun 3667.10 33.35
(0.92%)
OPEN

3640.00

HIGH

3693.35

LOW

3592.45

NSE 00:00 | 28 Jun 3664.70 28.55
(0.79%)
OPEN

3640.00

HIGH

3695.00

LOW

3591.10

OPEN 3640.00
PREVIOUS CLOSE 3633.75
VOLUME 6501
52-Week high 6240.00
52-Week low 3185.05
P/E 144.15
Mkt Cap.(Rs cr) 21,764
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3640.00
CLOSE 3633.75
VOLUME 6501
52-Week high 6240.00
52-Week low 3185.05
P/E 144.15
Mkt Cap.(Rs cr) 21,764
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Dixon Technologies (India) Ltd. (DIXON) - Chairman Speech

Company chairman speech

Dear Shareholders

A year ago we witnessed an unprecedented economic and health crisis and I gave you arather ambivalent outlook on our business growth. Though the first two months of thefiscal year were particularly difficult things started picking up with the revival ofeconomic activity. I am delighted to inform you that during the year gone by we haverecorded the highest ever revenue and profitability in the history of our company’sexistence. Our company’s revenue and profits stood at 6448 crores and 160 croresrespectively at the close of the financial year.

The feat alone is remarkable but to have achieved it on the backdrop of an ongoingpandemic is completely astounding. The results are a testament to our employees’resilience and unwavering commitment to the company and I remain grateful to them fortheir indomitable spirit. We would not have been able to achieve this milestone withoutthe support of our various stakeholders. I would also like to thank you our shareholdersfor your relentless patronage and trust in us. Our companies’ shares have ralliedover significantly on the stock exchanges in the three years since its listing and haverecorded a phenomenal upsurge in the twelve-trailing months before the stock split whichbecame necessary to maintain liquidity in our stocks.

Even amidst the dramatic changes brought about by the COVID-19 pandemic we emerged asa financially sound entity preparing for our leap to the next phase of growth.

The year has been rewarding for us with the Government of India announcing a host ofmeasures and reforms to boost the industry. The measures come at a critical time wheninternational companies were looking at expanding their footprint beyond China and seekingopportunities in other markets. Over a period of time I am confident these reforms willhelp India to emerge not only as a manufacturing base for serving domestic markets butalso for export markets.

One of the most important announcements has been the Production Linked Incentive (PLI)Scheme for Large Scale Electronics Manufacturing companies. A host of incentives have beenannounced under the ambit of the scheme for various segments. We had applied for PLIbenefits for the mobile phone segment and are proud to have been chosen as one among thefive domestic companies to have qualified to meet the prerequisites for the approval. Wewill receive 4-6% incentive on incremental sale of smartphones in less than H 15000category over the base year provided we meet the current years’ sales and capitalinvestment targets.

We have expanded our capacity in the smartphone vertical. We have also set up a factoryin Noida in record time to meet our production targets. We also aim to further expand ourcapacity within the next few years. We are also excited to have received contracts fromleading multinational companies to secure manufacturing rights for their products. Theorder books from these companies are quite compelling and are adequate for meeting theincremental sales requirements for the next few years.

A multitude of PLI schemes have been announced in other business segments as well andwe have applied for PLI incentives for some of our other business verticals also. Weremain extremely excited about our prospects in sectors such as telecom IT hardwarewearable and LED lights.

The scheme provides companies an opportunity to find a solid footing in domestic aswell as global markets. It not only encourages them to scale up production but alsoprovides the necessary impetus for backward integration. Apart from the direct benefitsunder the scheme for shortlisted companies the reform also assists in de-bottleneckingand boosting the component ecosystem. This combined with India’s demographicdividend trained and productive labour force budgetary focus on infrastructuredevelopment low logistics cost and the best tax rates globally positions India as oneof the most attractive destinations for global electronic companies. We believe India isat the cusp of an opportunity to become the Number 1 Electronic Manufacturing Destinationin the world and we remain extremely excited about the future prospects of the industryand our company.

We are strategically placed to capitalise on changing industry dynamics with our strongrelations with some of the biggest multinational brands and leading domestic brands.Today our product portfolio comprises a wide range of products across segments. This putsus on a very strong footing in the industry paving the way for our future growth.

Our employees constitute one of the strongest pillars of our business. We continue tofocus on our talent management process with initiatives to ensure workplace diversityequal opportunity and overall well-being of our employees. I would like to reiterate thecontribution of our employees in the feat especially during these testing times. We as anorganisation are committed to their health and safety. When the first wave of COVID-19 hitus we took multiple measures like educating our employees on necessary precautions andprevention measures. On resumption of the units post lockdown we made sure all COVID-19protocols were followed.

Now when the country is in the grasp of the second wave we are taking multiplepre-emptive measures wherever required. We are providing free remote health assistancefor our employees and have tied up with a leading healthcare provider for it. Arrangementfor Oxygen Concentrators has also been made for exclusive use of our employees and theirfamily members. I believe together we will be able to pass these testing times onceagain like we did the last year.

We look forward to many more years of innovation rewarding experiences and greateroperational efficiencies as we strengthen our position in the industry. For us costcompetitiveness de-layering improving efficiencies and increasing speed-to-market areconstant processes. It allows us to remain on the path of profitable growth and wecontinue to focus on our core capabilities to drive strong revenue generation.

Going forward we not only endeavour to scale up our business but also look forward toinvest in organic growth and expand our R&D capabilities. We are planning to set up astate-of-the-art manufacturing unit for mobile manufacturing with backward integration onthe plot allotted by Noida authority. I believe this will be our largest manufacturingunit so far. Moreover we have embarked on the journey of Industry 4.0 by undertakingautomation of key processes combined with data analytics which will ensure completetraceability of our operations and increase our manufacturing excellence.

We also realise that our goal to become a global enterprise with double-digit operatingmargin is onerous. However with strategic steps we are making steady progress towards ourgoal and remain resolute in our resolve to speed up the actions needed to fulfil theseambitions. I believe with a talented team and effective execution of operationalstrategies we can carve the path for Dixon’s future growth.

Regards

Sunil Vachani

Executive Chairman

.