Dixon Technologies - Strong Q4; New Growth Opportunities Priced In: Nirmal Bang

A worker assembles mobile phones at a Dixon Technologies factory in Noida, Uttar Pradesh, India. (Photographer: Anindito Mukherjee/Bloomberg).

Dixon Technologies - Strong Q4; New Growth Opportunities Priced In: Nirmal Bang

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

Dixon Technologies India Ltd. reported consolidated revenue of Rs 21.1 billion (up 146% YoY) broadly inline with ours/consensus estimates.

Gross margin was down 570 basis points YoY at 10.1%. Ebitda came at Rs 798 million (up 43% YoY) with margin of 3.8% (down 270 basis points YoY), below ours/consensus estimate of 4.7%/4.9%.

Profit after tax at Rs 443 million was below ours/consensus estimate of Rs 605 million/Rs 546 million.

Management highlighted that lower margin resulted due to substantial change in segment-mix with higher share of LED TVs business (original equipment manufacturer business) and also increase in commodity cost (impacted original design manufacturer business).

Click on the attachment to read the full report:

Nirmal Bang Dixon Technologies-Q4FY21 Result Update-28 May 2021.pdf

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