This EMS company, which is a manufacturer of company with operations in electronics products has a diversified range of business which is aligned with India’s focus on the “Make in India” initiative. With the use of Production-linked Incentives and other policies, Dixon Technologies possesses more opportunities for long-term investors. In this article, we will look into the business segments of Dixon and their segmental margins. However, investors should do their own research for their investments before investing.
Price Movement
Dixon Technologies (India) Limited’s stock in Friday’s session was trading at Rs. 15,693 per share up by 0.50 percent from the previous closing price of Rs. 15,615.45. The stock has delivered a return of around 191 percent in the past year and has outperformed the Nifty Index in the same period.
Business Segments
As per the recent September 2024 results, the company earns from the Mobile & EMS segment which contributed around 82 percent in Q2FY25 compared to 57 percent in Q2FY24. This segment contributed around 73 percent to the operating profit in Q2FY24 increased from 47 percent a year ago. For the Q2FY25 quarter, Hearables and wearables, Telecom, and Ismartu revenues were included thus one of the reasons for higher revenue. The revenue for this segment grew by 235 percent and operating profit gained by around 231 percent year on year.
The consumer and Electronic and appliances segment contributed around 12 percent to the revenue in Q2FY25, which declined due to higher growth in the Mobile and EMS segment. The operating profit stood at 12 percent compared to 25 percent a year earlier. In Q2FY25 revenues Refrigerator products were included. The revenue for this segment fell by 2 percent and operating profit gained by around 6 percent year on year.
Home Appliances segment contributed around 4 percent in Q2FY25, which declined from 7 percent a year ago. The operating profit contribution stood at 11 percent compared to 21 percent in Q2FY24. The revenue for this segment grew by 22 percent and operating profit gained by around 17 percent year on year.
The lighting products segment contributed around 2 percent in Q2FY25 which is lower compared to 4 percent in Q2FY24. The operating profit contribution in Q2FY25 stood at 4 percent compared to 6 percent a year earlier. The revenue for this segment grew by 29 percent and operating profit gained by around 31 percent year on year.
Overall, Home appliances contribute a higher percentage of profits to the bottom line of the company with a margin of approximately 11 percent followed by Lightin products at approximately 7 percent, Consumer appliances at approximately 3.7 percent, and the remaining mobile and EMS division at approximately 3.3 percent as of Q2FY25.
Financial Performance
Their Q2FY25 results show revenue from operations of Rs. 11,534 crore which increased by 133 percent year on year, from Rs. 4,943 crore in Q2FY24 and a 75 percent increase from Rs. 6,580 crore in Q1FY25. Their net profit increased by 264 percent year on year, from Rs. 113 crores in Q2FY24 to Rs. 412 crores in Q2FY25. Quarterly, the profits were up by 194 percent from Rs. 140 crore.
The debt-to-equity ratio was 0.31 times slightly declined from 0.49 times in FY23. The RoE in FY24 stood at 25.16 percent improved from 22.36 percent a year ago. However, the RoCE stood at 28.44 percent which has declined from 23.60 percent in FY23.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a share of 32.89 percent stake in Dixon Technologies (India), Foreign Institutional Investors (FII) holding around 22.69 percent, Domestic Institutional investors (DII) standing at 23.14 percent, and public holdings standing at 21.27 percent.
About the company
Dixon Technologies (India) Limited was founded in 1993 and is based in Noida. It is a leading electronics manufacturing services (EMS) provider in India and specializes in producing consumer durables, including LED TVs, mobile phones, washing machines, and lighting products such as LED bulbs. Dixon also offers security devices like CCTV systems and provides reverse logistics services for product repair and refurbishment. As a prominent original design manufacturer (ODM), they collaborate with major brands like Xiaomi and Samsung, ensuring a suite of solutions from design to logistics.
Written by Santhosh S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
