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.
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
83%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Additional CapEx for IT hardware PLI ramp-up and total committed revenue.
Asked by Sanidhya, Unicorn Assets
Management provided specific CapEx and committed revenue numbers.
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Question
So, is there any additional CapEx that would be required for the ramp up? And, in terms of total PLI for the IT hardware was near about INR 70,000 crores... how much did Dixon committed or got?
Atul Lall, Managing Director and Vice Chairman
In phase one, the committed CapEx is around 150 crores... In our business plans submitted to the government, we have committed to the government a revenue of 48,000 crores over the period, over the tenure of PLI.
Answered
Medium priority
Breakup of iSmartu revenue and number of units.
Asked by Sanidhya, Unicorn Assets
Management gave the unit volume for iSmartu.
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Question
And just if you can share the breakup for the 1,111 crore revenue for iSmartu, number of units?
Atul Lall, Managing Director and Vice Chairman
This come on board from thirteenth of August... to thirtieth of September. In this, the volume is going to be approximately around 800 K of the smartphones.
Partial answer
Medium priority
Brand-wise mobile production volumes and future scale.
Asked by Siddhartha Bera, Nomura
Refused brand-level detail but gave aggregate smartphone volume.
declined customer-wise breakdownprovided aggregate only
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Question
Can you please call out the brand name of the mobile along with the production that we're doing monthly for them, and where can we scale that in future?
Saurabh Gupta, CFO
Natasha, we don't want to share any customer-wise numbers with the market... I can give you an overall number, how many smartphones we have sold in this quarter.
Answered
High priority
Reason for 200 bps gross margin decline.
Asked by Siddhartha Bera, Nomura
Explained margin decline due to mix shift to lower-margin mobile business.
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Question
And, sir, in terms of gross margin, can you call out why we've seen a decline of 200 basis points?
Saurabh Gupta, CFO
Gross margins and EBITDA margins... is a function of the mix. A large part of the revenue contribution is coming from mobiles, which is relatively a lower gross margin...
Answered
Medium priority
Feature phone volume and PLI incentive booked this quarter.
Asked by Deepak Krishnan, Kotak Institutional Equities
Provided exact feature phone volume and PLI amount.
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Question
Feature phone was, I think, 6.6 million last quarter. So I just wanted to check the corresponding number for this particular quarter as well.
Saurabh Gupta, CFO
We did around nine point one million feature phones as compared to eight point three million last year...
Evasive
High priority
Guidance on smartphone volumes for FY25.
Asked by Deepak Krishnan, Kotak Institutional Equities
Declined to provide or update volume guidance despite prior range.
no guidance givenrefused to confirm or update range
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Question
Given the strong start of 12.2 million smartphones in one month, are we still guiding to 25-30 million, or do we think that we can even cross the upper end of the guidance?
Atul Lall, Managing Director and Vice Chairman
So, we have not given any guidance, and order book, please be rest assured, is extremely strong.
Answered
High priority
September exit monthly run rate and scale-up trajectory.
Asked by Bhoomika Nair, DAM Capital
Provided current monthly run rate and outlook for Q3 and Q4.
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Question
If you can give some sense on what was the September exit monthly run rate, and, you know, we can understand then, you know, possibly how it can scale up over the next couple of months.
Atul Lall, Managing Director and Vice Chairman
Including iSmartU, the present run rate is around 2.7, 2.8 million per month. This is without Samsung volumes.
Answered
High priority
HKC JV utilization in first year and scale-up plan.
Asked by Bhoomika Nair, DAM Capital
Detailed phase-wise capacity and timeline for HKC JV.
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Question
We were looking at some 25 million capacities. So how should we look at utilization in the first year of operations? And how are we looking to kind of scale that up?
Atul Lall, Managing Director and Vice Chairman
The HKC tie-up is, the phase one is two million units per month... Then immediately, we plan to double the capacity to four million.
Answered
High priority
Seasonality in mobile volumes and Q3/Q4 run rate.
Asked by Keyur Pandya, ICICI Prudential Life Insurance
Provided specific run rate estimates for Q3 and Q4.
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Question
We have hit the run rate of 2.7 to 2.8 million phones per month. So how slow does it typically fall to, and then how sharp is the recovery in fourth quarter?
Atul Lall, Managing Director and Vice Chairman
In quarter three... this 2.8 million should be around 2.3-2.4 million run rate... by Q4, it should go up again back to 2.8-3.
Answered
High priority
Components ecosystem plan, CapEx, and margin impact.
Asked by Keyur Pandya, ICICI Prudential Life Insurance
Detailed component categories, BOM percentage, and CapEx comparison.
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Question
On the component's ecosystem, can you just give some more indications about how we are planning it? Which all components can we get into? What kind of CapEx are we ready to put in?
Atul Lall, Managing Director and Vice Chairman
We are targeting to do in-house almost 27% of the BOM... CapEx is going to be almost of a similar order as HKC.
Answered
High priority
Telecom business size potential and iSmartU profitability.
Asked by Shrinidhi Karlekar, HSBC
Provided current and next year revenue targets for telecom.
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Question
We have seen a very impressive ramp up in this telecom business. So, would it be possible to share how large this business can become few years out?
Atul Lall, Managing Director and Vice Chairman
Last year, we did around INR 700 odd crores. This year, we are targeting almost INR 2400 crores... next year can be up almost INR 6-7 thousand crores.
Partial answer
Medium priority
Total CapEx for FY25 and FY26, and PLI income comparison.
Asked by Achal Lohade, Nuvama Institutional Equities
Provided FY25 CapEx range but declined FY26 guidance.
no FY26 guidance givendeferred to next year
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Question
Total CapEx, if you could talk, call out for FY 25 and possibly for FY 26, a ballpark number is good.
Atul Lall, Managing Director and Vice Chairman
First six months, we've done a CapEx of INR 360 odd crores, and we should be broadly around INR 550-INR 580 odd crores by end of this financial year.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| iSmartu revenue of INR 1,111 crores in 45 days | ₹1,111 cr | ₹11,528 cr | Understated vs filing |
| iSmartu annualized revenue of INR 7,000-7,500 crores | ₹7,250 cr | ₹11,528 cr | Understated vs filing |
| Smartphone volume growth of 468% YoY | 468% | 133% | Overstated vs filing |
| Telecom revenue target of INR 2,400 crores for FY25 | ₹2,400 cr | ₹11,528 cr | Understated vs filing |
| Telecom revenue potential of INR 6,000-7,000 crores next year | ₹6,500 cr | ₹11,528 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.