Dixon Technologies surges with 86% Q3 profit growth amid tech boom

Dixon Technologies Ltd.’s sales doubled year-on-year during the October-December period, aided by a low base. However, the numbers missed CNBC-TV18’s poll estimates on all parameters and were also lower on a sequential basis.

Revenue for the quarter doubled to ₹4,818 crore from ₹2,404.7 crore during the year-ago period. The base quarter had seen the company’s sales decline 22% due to a slowdown in the mobile business and the export market. Consequently, the management had also cut its full-year guidance, leading to shares declining the most since listing on January 27 last year.

A CNBC-TV18 poll had expected the revenue to be ₹4,888 crore.

Net profit for the quarter rose by 85% year-on-year to ₹97 crore, which also fell short of CNBC-TV18’s estimates of ₹104 crore. Dixon’s bottomline during the September quarter stood at ₹107 crore.

EBITDA or Earnings Before Interest, Tax, Depreciation and Amortisation missed CNBC-TV18’s estimates of ₹191 crore. However, the ₹184 crore figure was higher by 65% when compared to the base quarter.

EBITDA margin for the quarter stood at 3.8%, 10 basis points lower than the poll of 3.9%.

Dixon’s Mobile business saw 14% growth in its revenue compared to last year and contributed to two-thirds of the company’s overall topline and 57% of its overall EBITDA.

The consumer electronics business saw revenue of ₹929 crore, which although rose 8% from last year, but declined 35% when compared to the September quarter. The consumer electronics business contributed 19% to the overall topline.

Home Appliances business saw growth of 18% from last year, but declined 21% quarter-on-quarter. The business saw contribution of 6% to the overall topline. The lighting products business saw a decline of 29% year-on-year, but increased by 4% sequentially.

Shares of Dixon Technologies had ended 1.8% higher at ₹5,976.9 and have doubled over the last 12 months. CNBCTV18