Dixon Tech Q1: Margins improve, net profits jump 49%
The net profit is 49 percent higher year on year at Rs 67 crore versus Rs 45 crore. This is lower than the CNBC-TV18 poll of Rs 72 crore.
Dixon Technologies in the first quarter of FY24 reported 15 percent higher revenues at Rs 3,271 crore versus Rs 2,855 crore in the same quarter of last year. This beats the CNBC-Tv18 poll of Rs 3,242 crore.
The earnings before interest, tax, depreciation and amortisation (EBITDA) grew 32 percent year on year to Rs 132 crore, which is lower than the CNBC-TV18 poll of Rs 144 crore. The EBITDA margins are at 4 percent versus 3.5 percent year on year, while the Street expected 4.5 percent.
The net profit is 49 percent higher year on year at Rs 67 crore versus Rs 45 crore. This is lower than the CNBC-TV18 poll of Rs 72 crore.
In an interaction with CNBC-TV18,Dixon Tech's MD Atul Lall said, "I'll request that it would be more prudent to compare year on year (YoY). If you compare YoY basis, because quarter one for us, is relatively subdued. There is a margin expansion, both in lighting as well as consumer electronics and our television business. On quarter on quarter, there has been a bit of compression, primarily because the demand in quarter one is normally subdued and the fixed costs remain the same. And we feel going forward when you compare YoY, the margins would be in a similar range of what they were earlier."
Lall said that the company is not giving any guidance this year, but assured "all the stakeholders that the growth is going to be much ahead of industry growth in line with the expectations and the expectations that we have built earlier".
"In the EMS side, the margins are in the range of around 2.7 to 3.5 percent. So they are going to operate in this particular range in mobile business and also our other EMS businesses," Lall said.
Dixon Technologies is engaged in manufacturing products in the consumer durables, lighting and mobile phones/ smart phones markets in India.
First Published: Jul 25, 2023 4:05 PM IST
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