Q1 2025 Dixon Technologies (India) Ltd Earnings Call Transcript
Key Points
- Dixon Technologies (India) Ltd (BOM:540699) reported a 101% year-on-year growth in consolidated revenues for Q1 FY '25, reaching INR6,588 crores.
- Consolidated EBITDA grew by 90% year-on-year to INR256 crores, and consolidated PAT increased by 109% to INR140 crores.
- The company's ROCE and ROE expanded to 38.4% and 27%, respectively, with a gross debt-to-EBITDA ratio of 0.1% and a cash conversion cycle of negative seven days.
- The Mobile and EMS division saw a significant revenue growth of 189% year-on-year, with an operating profit margin of 3.3%.
- Dixon Technologies (India) Ltd (BOM:540699) continues to invest in capacities and diversify into new product categories, including interactive flat panel displays and digital signages, to support long-term growth.
- The Consumer Electronics segment experienced a decline in TV revenues by 18-19% year-on-year, attributed to a slow market and reduced volumes.
- The Home Appliances segment, despite an 18% revenue growth, saw a slight margin compression due to increased freight costs and competitive pressures.
- The Lighting segment continues to face pricing pressures and weak consumer demand, although there are efforts to expand the product basket and improve cost optimization.
- The company is facing delays in the rollout of IT products, with the mass production of Lenovo notebooks now expected to commence in Q3 of this fiscal year.
- There is uncertainty regarding the future of the Mobile phone PLI scheme, which is set to end in two years, and the potential introduction of a new incentive scheme for domestic manufacturing of components.
Ladies and gentlemen, good day, and welcome to the Dixon Technologies Q1 FY '25 Earnings Conference Call, hosted by DAM Capital Advisors Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Ms. Bhoomika Nair from DAM Capital Advisors Limited. Thank you, and over to you, ma'am.
Yes. Good evening, everyone. A warm welcome to the Q1 FY '25 earnings call of Dixon Technologies. We have with us the management today being represented by Mr. Atul Lall, Managing Director and Vice Chairman; and Mr. Saurabh Gupta, Chief Financial Officer.
I now hand over the floor to Mr. Atul Lall for his opening remarks, post which we'll open up the floor for Q&A. Thank you, and over to you, sir
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Thanks very much, Bhoomika. Good evening, ladies and gentlemen. This is Atul Lall, and we have on the call
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