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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:
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ramping up mobile phone production linked incentive revenue booking,
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value and volume growth in LED TV business,
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international business opportunities in lighting,
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foray into new verticals (fully automatic top-load washing machines, refrigerators, wearables etc.) and
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further diversification prospects through PLI schemes (IT products like laptops and tablets, telecom equipment etc.).
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