Synopsis:
Dixon Technologies has signed two binding agreements: acquiring a controlling stake in Q Tech India and forming a JV with Chongqing Yuhai to expand its mobile and IoT sectors in India.
During Wednesday’s trading session, the shares of one of the leading providers of Electronic Manufacturing Services (EMS) in India surged nearly 4 percent on BSE, after the company announced entering into two strategic partnerships to boost its presence in the mobile and internet of things (IoT) sectors.
With a market capitalisation of Rs. 98,350 crores, at 10:52 a.m., the shares of Dixon Technologies (India) Limited were trading in the green at Rs. 16,262.15, up by nearly 3 percent, as compared to its previous closing price of Rs. 15,818.2. The stock has delivered positive returns of nearly 30 percent in the last one year, and has gained by over 13 percent in a month.
What’s the News
According to the latest regulatory filings with the stock exchanges, Dixon Technologies (India) Limited signed binding term sheets with two separate companies. First Agreement: Dixon has signed a binding term sheet with Kunshan Q Tech Microelectronics (India) Private Limited (Q Tech India) and its shareholders — Q Technology (Singapore) Private Limited and Kunshan Q Technology International Limited (collectively referred to as the Q Tech Group).
Under this agreement, Dixon proposed to acquire a 51 percent stake in Q Tech India. The partnership aims to collaborate in the manufacturing, sales, and distribution of camera and fingerprint modules for mobile handsets, internet of things (IoT) systems, and automotive applications.
Second agreement: Dixon has also entered into a binding term sheet with Chongqing Yuhai Precision Manufacturing Co. Limited to establish a joint venture (JV) in India. The ownership structure of the JV, which will be finalised through a mutually agreed arrangement, will have Dixon holding 74 percent and Chongqing holding the remaining 26 percent of the total paid-up share capital.
The JV will focus on the business of manufacturing and supplying precision components for laptops, mobile phones, IoT, automotive products, and other segments as agreed upon by both parties.
Financials
Dixon Technologies reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 121 percent, from Rs. 4,658 crores in Q4 FY24 to Rs. 10,293 crores in Q4 FY25. Similarly, the company’s net profit increased during the same period from Rs. 97 crores to Rs. 465 crores, representing an impressive rise of nearly 379 percent YoY.
The company’s revenue from operations grew at a 3-year CAGR of around 54 percent between FY22 and FY25, while the net profit jumped by over 86 percent CAGR over the same period.
Dixon Technologies (India) Limited is India’s largest homegrown, design-focused solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets.
The company’s diversified product portfolio includes consumer electronics such as LED TVs, home appliances like washing machines and refrigerators, lighting products including LED bulbs, tube lights, and downlighters, as well as mobile phones, wearable and hearable devices, and telecom and IT hardware products. The company also offers reverse logistics services, including the repair and refurbishment of LED TV panels.
Written by Shivani Singh
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