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View Claim Ledger →Dixon Technologies (India) Limited — Q2 FY25
Dixon Technologies delivered a stellar Q2 FY25 with consolidated revenue surging 133% YoY to INR 11,528 crore, driven by a 235% YoY jump in mobile & EMS revenue to INR 9,444 crore.
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Dixon Technologies delivered a stellar Q2 FY25 with consolidated revenue surging 133% YoY to INR 11,528 crore, driven by a 235% YoY jump in mobile & EMS revenue to INR 9,444 crore. Smartphone volumes exploded to 8.13 million (vs 1.43 million last year), aided by the iSmartU acquisition and strong traction with Motorola, Xiaomi, and Oppo. EBITDA grew 110% to INR 420 crore, though margins compressed due to mix shift toward lower-margin mobile business. PAT of INR 412 crore included a INR 210 crore fair value gain from Aditya Infotech stake; adjusted PAT grew 109% to INR 236 crore. Management guided for continued momentum with IT hardware ramp-up (HP, ASUS, Lenovo) and backward integration via HKC display JV, targeting 27% BOM capture. Risk: LED TV volumes declined 10% YoY amid industry weakness, and margin expansion hinges on component ecosystem which is 15-18 months away.
डिक्सन टेक्नोलॉजीज ने दूसरी तिमाही में शानदार प्रदर्शन किया। कंपनी की कुल आय 133% बढ़कर 11,528 करोड़ रुपये हो गई। मोबाइल और इलेक्ट्रॉनिक्स विनिर्माण से आय 235% बढ़कर 9,444 करोड़ रुपये पहुंच गई। स्मार्टफोन की बिक्री 8.13 मिलियन यूनिट हो गई, जो पिछले साल 1.43 मिलियन थी। इसकी वजह iSmartU कंपनी का अधिग्रहण और मोटोरोला, श्याओमी, ओप्पो से मजबूत ऑर्डर हैं। कंपनी का मुनाफा 110% बढ़कर 420 करोड़ रुपये हुआ, लेकिन मार्जिन कम हुआ क्योंकि सस्ते मोबाइल फोनों की बिक्री बढ़ी। कुल मुनाफा 412 करोड़ रुपये रहा, जिसमें 210 करोड़ रुपये का एकमुश्त लाभ शामिल है। असली मुनाफा 109% बढ़कर 236 करोड़ रुपये हुआ। कंपनी को आगे भी अच्छी वृद्धि की उम्मीद है, खासकर कंप्यूटर और डिस्प्ले बनाने के कारोबार से। लेकिन एलईडी टीवी की बिक्री 10% गिर गई है और मार्जिन बढ़ाने में 15-18 महीने लग सकते हैं।
Promises0 met · 1 missedRisks4 trackedTranscriptfull text
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LED TV industry decline
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Smartphone Volumes
8.13M
+468% YoY
Smartphone volumes surged from 1.43M in Q2 FY24 to 8.13M, including 45 days of iSmartU contribution.
Monthly Smartphone Run Rate
2.7-2.8M
+87% YoY
Current monthly run rate (including iSmartU) is 2.7-2.8M, expected to dip to 2.3-2.4M in Q3 and recover to 2.8-3M in Q4.
Telecom Revenue Guidance
INR 2,400 Cr
+243% YoY
Telecom segment targeting ~INR 2,400 Cr revenue in FY25 vs ~INR 700 Cr last year, with order book for next year at INR 6,000-7,000 Cr.
iSmartU Annualized Revenue
INR 7,500 Cr
N/A
iSmartU is expected to contribute INR 7,000-7,500 Cr on an annualized basis, with profitability slightly better than existing EMS business.
What Changed vs Last Quarter
NEW
Telecom revenue of ~INR 2,400 Cr in FY25
Telecom segment is targeting ~INR 2,400 Cr revenue this fiscal, up from ~INR 700 Cr last year, with next year's order book at INR 6,000-7,000 Cr.
NEW
Component backward integration to improve margins in 15-18 months
Management expects margin expansion to start reflecting in 15-18 months as the component ecosystem (HKC display, camera modules, mechanicals) stabilizes, targeting 27% BOM capture.
UPDATED
IT hardware revenue target of INR 4,500-5,000 Cr by year 3
Management expects IT hardware (laptops/tablets) to generate INR 4,500-5,000 Cr annual revenue within 2-3 years, driven by partnerships with HP, ASUS, Acer, and Lenovo.
UPDATED
CapEx of INR 550-580 Cr for FY25
Total CapEx for FY25 is expected to be INR 550-580 Cr, with INR 360 Cr already spent in H1. HKC display JV alone will require ~INR 375 Cr.
DROPPED
EBITDA margin guidance of 3.9-4%
Management indicated that consolidated EBITDA margins will remain in the range of 3.9-4%, similar to current levels.
DROPPED
Display module production to start by Q1 FY26
The display module JV with HKC is expected to commence production by end of this fiscal or Q1 next fiscal, with initial capacity of 2 million units per month.
NEW RISK
LED TV industry decline
LED TV volumes fell 10% YoY to 9.7 million units, reflecting broader industry weakness. Management noted the industry is declining, not just Dixon.
NEW RISK
Margin compression from mobile mix shift
Gross margins declined ~200 bps due to higher contribution from lower-margin mobile business. Management expects sub-4% EBITDA margins until component ecosystem ramps up.
NEW RISK
Dependence on PLI for IT hardware viability
Analyst questioned whether IT hardware business is self-sustaining without PLI. Management acknowledged government support is critical for global competitiveness, though domestic demand may sustain.
NEW RISK
Forex losses from yen-denominated CapEx
Other income turned negative due to FX losses on Japanese yen payments for machinery. The yen appreciated sharply in Q2, impacting reported profits.
RISK GONE
TV market slowdown
The LED TV market declined 17% in Q1, impacting consumer electronics revenue. Recovery depends on festive season demand.
RISK GONE
Execution risk in IT hardware ramp-up
Delays in Lenovo production (now Q3) and new customer onboarding could affect revenue targets. Management acknowledged minor delays.
RISK GONE
PLI scheme expiry post-2026
The mobile PLI scheme ends in March 2026. Uncertainty over replacement scheme could impact margins if component ecosystem doesn't develop.
RISK GONE
Freight cost pressure on home appliances
Sea freight increases due to Red Sea crisis compressed home appliance margins by 40 bps. Pass-through to customers may take time.
🤫 Topics management stopped discussing
Mentioned in Q1 FY24, Q3 FY24
Similar level of capex as FY24, subject to budget finalization, to support capacity expansion and new customer programs.
Mentioned in Q1 FY25, Q4 FY24
Management indicated that consolidated EBITDA margins will remain in the range of 3.9-4%, similar to current levels.
Mentioned in Q3 FY24, Q4 FY24
Management guided for FY25 smartphone volumes of 28-30 million units, excluding Samsung, up from 6.5 million in FY24.
Fast read
Guidance and risk preview
Management expects IT hardware (laptops/tablets) to generate INR 4,500-5,000 Cr annual revenue within 2-3 years, driven by partnerships with HP, AS...
LED TV volumes fell 10% YoY to 9.7 million units, reflecting broader industry weakness.
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