Dixon Tech rises after strong growth in Q4 PAT, ₹5 per share dividend declaration

The electronics manufacturing services provider reported a consolidated profit after tax (PAT) of ₹97 crore for the quarter ending on March 31, marking an uptick of 20% on a year-on-year (YoY) basis from ₹81 crore in the same period last year. The increase in profits was led by a sharp increase in the orders of mobile phones.

Dixon Technologies’ consolidated revenue from operations witnessed a healthy double-digit growth of 52.4% to ₹4,675 crore in the final quarter of financial year 2024 compared to ₹3,067.27 crore in the year-ago period.

On the operating front, Dixon’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 26% to ₹199 crore in the March 2024 quarter versus ₹158 crore in the corresponding quarter of the previous financial year.

Its EBITDA margin, however, dipped marginally by 90 bps (Basis Points) to 4.3% in the January to March 2024 period as opposed to 5.2% in the year-ago period.

Similarly, the PAT margin also slipped 50 bps to 2.1% in the quarter under review from 2.6% in Q4 FY23.

Dixon Tech’s shares closed 1.63% higher at ₹8,235 per piece on the National Stock Exchange (NSE).

The company’s board of directors has also recommended a final dividend of ₹5 per equity share having a face value of ₹2 each for the financial year 2024, subject to the approval of its shareholders at the company’s 31st Annual General Meeting (AGM).