Dixon Technologies Sees Strong Growth For Mobile Segment In Second Quarter
Government’s reduction of customs duty on open cells to benefit Dixon’s mobile segment second quarter onward.
Dixon Technologies Ltd. will benefit from the reduction in customs duty on open cells used for mobile phones, LED and LCD television panels.
Last month, the government cut the basic customs duty on imported open cell displays to 5 percent from 10 percent earlier, a move intended to boost domestic manufacturing.
In lieu of the rate reduction, India’s largest third-party television maker expects its mobile segment to register strong growth in the second quarter.
“There would be much more of brand outsourcing to players like Dixon, translating into better volume and revenue growth,” said Atul Lall, managing director, Dixon Technologies told BloombergQuint.
Going ahead, the company expects to clock an over 25 percent revenue growth in the next three to five years, Lall added.
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