In Tuesday’s early trade, the shares of India’s second-largest mobile phone manufacturer gained 6 percent to a 52-week high price of Rs 6,764 per share after its subsidiary received a contract from Lenovo to manufacture IT Hardware products.
At 11:17 a.m., Dixon Technologies Ltd shares were quoted at Rs 6,551 per share, up Rs 178.95 or 2.81 percent from the previous close price. The company has a market capitalization of Rs 39,174 crore.
According to the company’s exchange filing, Dixon Tech’s wholly owned subsidiary Padget Electronics Private Limited received a manufacturing contract from Lenovo to carry out the manufacturing of IT Hardware products including, Laptops and Notebooks under the Production Linked Incentive 2.0 Scheme.
Dixon Tech currently has 17 manufacturing facilities totaling 2.5 million square feet, with plans to develop 23 plants totaling 4.8 million square feet by FY 2024.
Dixon Technologies Ltd shares have returned 57 percent in the last six months and 64 percent in the last year.
The company has a market share of 35 percent in the manufacture of LED televisions, 30 percent in washing machines, 25 percent in security surveillance systems, and 50 percent in lighting solutions.
Dixon Technologies Ltd is the world’s fourth-biggest LED light manufacturer and the largest in India. Manufacturer of LED lamps.
Revenues climbed by 28 percent year on year, from Rs 3,866 crore in Q2FY23 to Rs 4,943 crore in Q2FY24, while net profit improved by 43 percent from Rs 77 crore to Rs 110 crore.
Domestic revenue accounted for 91 percent of the company’s revenue in the previous fiscal year, while export sales accounted for 9 percent. In the current fiscal year, the company has set aside Rs 450 million for capital expenditure.
In FY 22-23, the company generated considerable cash from operations of Rs 726 crores, which was used to support a capex of Rs 450 crores and decrease gross debt by Rs 275 crores, further strengthening the balance sheet.
Dixon Technologies Limited is the largest engaged in manufacturing products in the consumer durables, lighting, and mobile phones markets in India. Their diversified product portfolio includes consumer electronics, home appliances like washing machines, lighting products, tube lights, downlighters, mobile phones, and many more.
Written by Omkar Chitnis
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