Dixon Technologies (India) Limited — Q4 FY24
Dixon Technologies delivered a strong Q4 FY24 with consolidated revenue of ₹4,675 crore (+52% YoY) and PAT of ₹97 crore (+20% YoY).
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.
67%Questions answered2Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Details on vertical integration in mobile phones, opportunity and margins.
Asked by Aditya Bhartia, Investec
Gave capacity and CapEx but did not quantify margin opportunity.
no margin details givenexact numbers not finalized
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Question
So you spoke about vertical integration in the mobile phones business. It would be great if you could share some more insights into this. What exactly are we planning? What kind of an opportunity would it be? What kind of margins it could entail?
Atul Lall, Managing Director and Vice Chairman
The specific component that we are pursuing vigorously is display module for a smartphone's. We are targeting in phase one to create a capacity of almost 25 million in the Delhi NCR area. The CapEx in this is going to be almost $30 million without land and building.
Evasive
Medium priority
Update on PCB assembly RFQ from large global customer.
Asked by Aditya Bhartia, Investec
Acknowledged pursuit but gave no concrete details on customer or size.
no specific detailsno timeline or value
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Question
In the last conference call, sir, you had also referred to the opportunity on the PCB assembly side, with one of the large, global customers from whom you have received, RFQ. Any details that you can share around that?
Atul Lall, Managing Director and Vice Chairman
So that is what we are pursuing. We are going to be setting up a campus, a new campus, in which the non-consumer side of PCBA will be housed inside. That RFQ is being pursued, and we are very optimistic that we're going to secure the business.
Evasive
Medium priority
Whether Ismartu acquisition could lead to more such deals.
Asked by Aditya Bhartia, Investec
Confirmed pursuit but gave no specifics on potential deals.
no commitmentdeferred to future updates
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Question
Do you think this kind of an acquisition could pave way for more such deals, especially with customers who have their own manufacturing facilities?
Atul Lall, Managing Director and Vice Chairman
I think Ismartu is extremely positive, strategic acquisition for us, and it's a larger relationship, which goes for years and years. We are pursuing those kind of relationships. Let's see where we reach, but we'll keep updating you.
Answered
High priority
Timeline to fully utilize 45 million smartphone capacity.
Asked by Ankur Sharma, HDFC Life
Provided current monthly run-rate and annual volume target.
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Question
I think you mentioned you have about 45 million smartphone capacity, is what you created. By when do you think you can actually fully utilize it?
Atul Lall, Managing Director and Vice Chairman
We are already at 2.3 million a month... I feel that this year itself, we should be somewhere around 28-30 million. Samsung would be over 10 million. But without Samsung, we should be at somewhere around 28 million.
Answered
Medium priority
Annual volume numbers for TV, washing machine, lighting.
Asked by Ankur Sharma, HDFC Life
Provided specific volume numbers for each category.
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Question
If you could also just share the volume numbers, the annual volume numbers for your category, TV, washing machine, lighting, so on and so forth.
Saurabh Gupta, CFO
On LED TVs, our volumes was around 3 million. LED bulbs, 94 million. Ceilings, 20 million. Downlights, 2.5 million. Semi-automatic washing machine was 1.7 million. Smartphones, excluding Samsung, was around 6.5 million. Feature phone was 38 million. Samsung smartphone was around 8.6 million.
Answered
Medium priority
Breakdown of other income and PLI income booked.
Asked by Deepak Krishnan, Kotak Institutional Equities
Provided specific breakdown of other income and PLI amount.
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Question
Anything in other income that you've seen a sharp jump this quarter or anything that sort of is one-off or any PLI or anything that is booked over there?
Saurabh Gupta, CFO
We have got a large FX income in this quarter for exchange gain of almost 10-odd crore, and then INR 6-7 crore to INR 8 crore is the sum of the liabilities which have been written back. PLI income for the full year is around INR 70 odd crores across four PLIs.
Answered
High priority
Reason for reduction in cash flow from operations despite negative working capital.
Asked by Girish Achhipalia, Morgan Stanley
Explained the working capital impact and showed underlying improvement.
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Question
When I look at consolidated cash flow for the full year, we were at INR 726 crore last year, and this year we were at INR 584 crore post-tax. Can you explain? Because your net working capital is minus eight days...
Saurabh Gupta, CFO
Last year, there was a INR 275 crore working capital positive change... If exclude that INR 276 crore, we are talking about INR 450 crore of cash flow, which got generated last year. That INR 450 crore has actually gone up to INR 580 crore.
Partial answer
High priority
CapEx outlook for FY25 and FY26, including display investment.
Asked by Girish Achhipalia, Morgan Stanley
Gave some components but overall CapEx number not finalized.
no exact numberstill being worked out
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Question
What are we penciling in this year, given that we have some expenditure on display also going in? And if you can provide some high-level breakup of that CapEx for fiscal 2025, 2026.
Saurabh Gupta, CFO
One of the numbers we have is the $30 million on the mobile display. This in itself is to INR 40-odd crore. Then there are certain committed CapEx under the PLI... I think so it should be lower than the current financial year of INR 570-odd crore.
Partial answer
High priority
Outlook for consumer electronics and lighting segments after decline.
Asked by Mayur Patel, 360 ONE Asset
Described initiatives but did not quantify when growth would resume.
no quantitative timelinequalitative only
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Question
On the other segments, like consumer electronics and lighting, we saw 10.9% decline and around 27% year-over-year decline. Just if you can share some thoughts around how do we see where this can settle in terms of bottoming out and start to grow?
Atul Lall, Managing Director and Vice Chairman
In television, we are doing backward integration, migrating to JDM/ODM, expanding product portfolio. In lighting, we are entering professional lighting, new customer acquisition. I see an improvement in the order book in the current quarter. Hopefully, it should keep improving.
Answered
High priority
Predictability of mobile phone revenue and volume target of 28-30 million.
Asked by Pulkit Patni, Goldman Sachs
Acknowledged variability and quantified range of 10-15%.
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Question
How predictable is it? Is the customer going to decide it two months ahead of schedule, whether you make it, or is this sort of carved in stone that the 27, 28 million you spoke about, is something we should be able to do next year?
Atul Lall, Managing Director and Vice Chairman
They give a quarterly breakup of their expected requirements. Is that cast in stone? No. Can there be a variability to it? Yes. But largely, what they share, it's broadly in that range, there can be a variability of 10%-15%.
Partial answer
High priority
Whether 4% EBITDA margin guidance is conservative given operating leverage.
Asked by Pulkit Patni, Goldman Sachs
Indicated better margins from new customers but did not quantify improvement.
no specific margin improvement quantified
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Question
I'm just trying to understand, is the margin number you're giving bit on the conservative side, or the contracts are negotiated in such a way that 4% or sub-4% is the number that we should keep in mind?
Atul Lall, Managing Director and Vice Chairman
The new customer acquisitions are better margins. So let's see how it emerges. That's the number that Saurabh has given you on the basis of his internal calculations.
Answered
Medium priority
PLI income breakdown for mobile segment and FY25 projection.
Asked by Abhineet Anand, 3P Investment Managers
Provided specific PLI amount for mobile segment.
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Question
For within the INR 71 crore, how much is for the mobile segment?
Saurabh Gupta, CFO
Mobile segment will be around INR 52 crore.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Mobile phone export INR 1,250 crore in FY23 | ₹1,250 cr | ₹4,675 cr | Understated vs filing |
| FY25 export growth expected 60-70% | 65% | 52% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.