Dixon Technologies (India) Limited — Q3 FY24
Dixon Technologies reported a stellar Q3 FY24 with consolidated revenue surging 100% YoY to INR 4,821 crore, driven by a 251% YoY jump in mobile & EMS revenue to INR 3,214 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.
75%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
Medium priority
When will lighting prices bottom out and demand recover?
Asked by Ankur Sharma, HDFC Life
Acknowledged price bottom but gave no timeline for demand recovery, deferred to 'wait and watch'.
no timeline givenvague on demand recovery
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Question
how do you really see this going forward? By when do you think prices bottom out?
Atul Lall, Vice Chairman and Managing Director
the price drop... has kind of bottomed out and stabilized. However, the demand continues to be subdued on the consumer side.
Evasive
Medium priority
How large is export business and can it offset lighting weakness?
Asked by Ankur Sharma, HDFC Life
Acknowledged opportunity but refused to share any size or timeline for revenue.
no number givenrefused to quantify
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Question
And on export, how big would that be right now? ... can this kind of offset some of this weakness on the B2C demand?
Atul Lall, Vice Chairman and Managing Director
we are almost close to certain significant breakthroughs... but what kind of revenues it's going to offer, I'm not in a position to answer that question.
Partial answer
High priority
Details on two new large mobile phone customers?
Asked by Ankur Sharma, HDFC Life
Gave some color but withheld brand names and volume commitments.
no brand namesno volume numbers
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Question
Anything more you can talk about? Are these brands in India?
Atul Lall, Vice Chairman and Managing Director
This is mainly for the Indian market. The first brand... within the top three to four brands in India. The other brand is a very, very large global brand.
Partial answer
High priority
Ramp-up status for Xiaomi, Itel, Jio, Motorola?
Asked by Ankur Sharma, HDFC Life
Gave qualitative updates but no quantitative ramp-up numbers.
no specific volume numbers
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Question
how is the ramp up happening? ... Any numbers you can share?
Atul Lall, Vice Chairman and Managing Director
Motorola volumes is very significant... 20%-30% of what we're gonna manufacture is going to be for exports... Xiaomi... production has already started... Jio... consistently producing... Itel... significant production of smartphones is going to start.
Answered
Medium priority
How is mobile phone business structured across facilities?
Asked by Aditya Bhartia, Investec
Provided specific capacity numbers and timeline for new factory.
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Question
how are we thinking about structuring this business? Would some part of the existing business be moving to a larger facility?
Atul Lall, Vice Chairman and Managing Director
we are creating a capacity of almost 30 million units... building this 860,000 sq ft factory... will take 2-2.5 years... We'll have to take a call that how much of it is gonna be shifted.
Answered
High priority
Why were non-mobile segments soft this quarter?
Asked by Aditya Bhartia, Investec
Provided specific YoY growth percentages for each segment.
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Question
performance this quarter for segments other than mobile... appears to be a little soft... is it that the market is going through a fairly stark slowdown?
Atul Lall, Vice Chairman and Managing Director
LED TV... grown 8% in value... semi-automatic washing machine... grown by 35%... smartphones... 246%... feature phones by 1,300%... Wearable... grown by 22%... CC TV... 89%... DVR... 81%... all the other verticals we have grown, except for lighting.
Answered
High priority
Will Jio Bharat phone volumes sustain beyond this year?
Asked by Deepak Krishnan, Kotak
Clearly stated that volumes will ramp down soon.
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Question
do you kind of see that volume sustaining beyond this year? Or do you kind of look at that as a one-time revenue addition?
Atul Lall, Vice Chairman and Managing Director
The Jio Bharat is going to ramp down in a couple of months.
Answered
High priority
How will mobile phone margins trend over next 12 months?
Asked by Renu Baid Pugalia, IIFL Securities
Provided specific margin number and outlook with basis points guidance.
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Question
how should we look at the mobile phone business from a profitability perspective? ... do you think margins in mobile could take a near-term knock?
Atul Lall, Vice Chairman and Managing Director
the last quarter we have generated an operating margin of 3.2%. I feel we should be in a similar range. There will not be any negative impact. If possible, there might be 10-20 basis points improvement.
Answered
High priority
What is current production run rate for Xiaomi?
Asked by Keyur Pandya, ICICI Prudential
Provided a specific current production number.
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Question
what would be the level of production, any run rate that you can share?
Atul Lall, Vice Chairman and Managing Director
INR 100,000 for Xiaomi.
Answered
High priority
What is mobile phone volume guidance for FY25?
Asked by Girish Achhipalia, Morgan Stanley
Provided a specific volume number for FY25.
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Question
if you can help us on volumes for FY 2025... how should we think about the two customers in terms of volumes?
Atul Lall, Vice Chairman and Managing Director
We should be somewhere around 25 million.
Answered
High priority
What is Motorola's global volume and Dixon's share?
Asked by Shrinidhi Karlekar, HSBC
Provided global volume range and Dixon's share percentages.
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Question
how much is Motorola's non-India volumes currently on an annualized basis, and how much of that is currently serviced by Dixon?
Atul Lall, Vice Chairman and Managing Director
Motorola global volumes are almost 40 million-45 million... this year, we should be doing almost 15% of what Motorola does globally... in the coming year should increase to 18%-20%.
Partial answer
High priority
Can Dixon quadruple business in 4-5 years?
Asked by Bharat Shah, ASK Investment Managers
Agreed qualitatively but refused to give a formal forecast or numbers.
no commitmentno numbers
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Question
do we say approximately, we should be able to quadruple our business in, say, four to five years' time... Is that a realistic possibility?
Atul Lall, Vice Chairman and Managing Director
I definitely feel that it's a realistic possibility. I'm not giving any forecast or any numbers, but I think, internally, we're excited about this opportunity.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Mobile operating margin of 3.2% in Q3 | 3.2% | 3.88% | Understated vs filing |
| LED TV value growth 8% YoY | 8% | 100% | Understated vs filing |
| Semi-automatic washing machine growth 35% YoY | 35% | 100% | Understated vs filing |
| Smartphone growth 246% YoY | 246% | 100% | Overstated vs filing |
| Feature phone growth 1,300% YoY | 1300% | 100% | Overstated vs filing |
| Wearable growth 22% YoY | 22% | 100% | Understated vs filing |
| CCTV growth 89% YoY | 89% | 100% | Understated vs filing |
| DVR growth 81% YoY | 81% | 100% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.