Dixon Technologies Q1 Review – Healthy Topline Growth; FY23 Margin Guidance Of 4% Maintained: Nirmal Bang


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Dixon Technologies India Ltd. reported consolidated revenue of Rs 28.5 billion, 15.1% below our estimates and nearly in line with consensus estimate.

Gross margin was up 170 basis points YoY at 9.1%. Ebitda came in at Rs 1 billion, with Ebitda margin of 3.5%, below our/consensus estimate of 4.1%/3.7%.

Dixon incurred a forex loss of Rs 120 million. Ex-forex loss, Ebitda margin would have come in at ~3.9%. Profit after tax at Rs 455 million was below our/consensus estimate by 39.8%/14.7% YoY. The growth outlook for the next few years remains robust, led by:

  1. ramping up mobile phone production linked incentive revenue booking,

  2. value and volume growth in LED TV business,

  3. international business opportunities in lighting,

  4. foray into new verticals (fully automatic top-load washing machines, refrigerators, wearables etc.) and

  5. further diversification prospects through PLI schemes (IT products like laptops and tablets, telecom equipment etc.).

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