Dixon Technologies fourth quarter results: Net profit rose 20% year-on-year to Rs 97 crore.
In the January-March quarter, it recorded a net profit of 9.7 billion won. Quarterly revenue was Rs 4,675 crore, up 52% year-on-year.
The electronics manufacturer has more than 20 production facilities across the country. Dixon makes smartphones and feature phones for brands like Xiaomi, Motorola, Samsung and Jio, and is in talks with other global brands for more manufacturing orders.
However, sequentially, after-tax profits remained flat compared to the previous quarter, and sales declined 3% quarter-over-quarter.
The company’s EBITDA margin also declined 90 bps to 4.3% in Q4FY23 compared to 5.2% in Q4FY23. The Dixon board has recommended a dividend of Rs 5 per share. Dixon shares fell 0.41 per cent to Rs 8096 on Wednesday. Results were announced after the market closed. The company’s revenue from its mobile phone manufacturing segment, which accounts for the majority of overall revenue, rose 119% year-on-year but fell 4% quarter-on-quarter to Rs 3,091 crore. The mobile manufacturing business grew 78 per cent year-on-year, but grew only 1 per cent sequentially to Rs 105 crore.
The company produced hearing and wearable devices worth Rs 72 crores, telecom products worth Rs 228 crores and IT hardware worth Rs 2 crore during the March quarter.
The company is part of the government’s production-linked incentive scheme. It recently acquired a majority stake in the manufacturing arm of Transsion Holdings, which makes phones for the Infinix, Tecno and Itel brands.
The company’s Consumer Electronics and Home Appliances segment revenue decreased 9% year-on-year and 3% quarter-on-quarter to KRW 897 million, while operating profit decreased 19% year-on-year and 6% quarter-on-quarter to KRW 3 billion. .
Dixon’s home appliance sales rose 5% year-on-year and 2% quarter-on-quarter to Rs 294 crore, while segment operating profit jumped 1% from the previous quarter to Rs 30.1 crore, down 3% year-on-year.
For lighting products, sales declined 27% year-on-year but rose 5% sequentially to Rs 197 crore, while operating profit rose 8% sequentially to Rs 14.2 crore, down 46% year-on-year.
The company’s security systems manufacturing segment saw revenue surge 44% year-on-year but decline 11% sequentially to Rs 179 crore, while operating profit fell 6% year-on-year and 33% sequentially to Rs 34 crore.
