In This Article:
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Consolidated Revenue: INR11,528 crores, up 133% year-on-year.
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Consolidated EBITDA: INR420 crores, up 110% year-on-year.
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Consolidated PAT: INR412 crores, up 265% year-on-year.
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Adjusted PAT: INR236 crores, up 109% year-on-year (excluding fair value gain).
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ROCE: 38.9% as of September 30, 2024.
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Adjusted ROE: 31% as of September 30, 2024.
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Gross Debt-to-Equity Ratio: 0.162.
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Cash Conversion Cycle: Negative three days.
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Mobile Phones and EMS Revenue: INR9,444 crores, up 235% year-on-year.
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Mobile Phones and EMS Operating Profit: INR308 crores, up 231% year-on-year.
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Consumer Electronics Revenue: INR1,413 crores.
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Consumer Electronics Operating Profit: INR52 crores, margin of 3.7%.
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Refrigerator Revenue: INR188 crores.
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Home Appliances Revenue: INR444 crores, up 22% year-on-year.
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Home Appliances Operating Profit: INR49 crores, up 17% year-on-year.
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Lighting Revenue: INR233 crores.
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Lighting Operating Profit: INR17 crores.
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Telecom and Networking Products Revenue: INR660 crores.
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Wearables and Hearables Revenue: INR263 crores.
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Rexxam Dixon Electronics Revenue: INR90 crores.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Dixon Technologies (India) Ltd (BOM:540699) reported a significant revenue growth of 133% year-on-year, reaching INR11,528 crores for Q2 FY25.
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The company's consolidated PAT grew by 265% year-on-year, reaching INR412 crores, showcasing strong profitability.
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Dixon Technologies (India) Ltd (BOM:540699) has successfully expanded its ROCE and adjusted ROE to 38.9% and 31%, respectively.
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The company has a negative cash conversion cycle of three days, indicating efficient working capital management.
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Dixon Technologies (India) Ltd (BOM:540699) has onboarded several multinational brands for its LED TV segment, including Hisense and Amazon Fire TV solutions.
Negative Points
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The gross margin declined by 200 basis points due to a change in sales mix, with a significant portion of revenue coming from lower-margin mobile business.
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The LED TV segment experienced a year-on-year volume decline of 10%, reflecting industry-wide challenges.
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The company's finance costs have increased due to debt taken for acquisitions and higher CapEx intensity.
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There is a noted seasonality in the mobile phone segment, with expected volume dips post-Diwali.
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The company faces competitive pressures in the LED TV industry, which is not growing and is experiencing a decline.
Q & A Highlights
Q: Can you provide details on the CapEx for IT hardware under the PLI scheme and the expected revenue from this segment? A: Atul Lall, Managing Director, stated that the committed CapEx for Phase 1 is around INR150 crores for the Chennai plant, creating a capacity for 1.2 million units. The plan is to expand capacity to 3-3.5 million units. The business plan submitted to the government commits to a revenue of INR48,000 crores over the PLI tenure.