Dixon Technologies shares gain 2% on MoU with HP for manufacturing PCs in India

Shares of Dixon Technologies (India) Limited gained over 2% to trade at an intraday high of ₹12,675 apiece on the NSE on Tuesday, September 10, after the company announced signing a Memorandum of Understanding (MoU) with HP India.

Dixon Technologies informed the exchanges in a filing, on September 9, that its wholly-owned subsidiary, Padget Electronics Private Limited, has entered into a deal with HP India Sales Private Limited. The company will manufacture notebooks, desktops and all-in-one PCs for HP as a part of the MoU.

The contract manufacturer for electronics also said that the notebooks, desktops and PCs will be manufactured under the Production Linked Incentive scheme (PLI 2.0) scheme.

The PLI 2.0 scheme for IT Hardware was approved on May 17, 2023. The scheme is a part of the Atma Nirbhar Bharat Initiative of the central government and offers an average incentive of around 5% on net incremental sales (over base year) of goods manufactured in India and covered under the target segment for a period of six years.

Dixon Technologies’ consolidated revenue from operations for the June quarter of FY25 increased over 101% to ₹6,579.8 crore against ₹3,271.5 crore in the June quarter of the preceding fiscal. Sequentially the company’s revenue from operations increased over 41% from ₹4,657.97 crore in the March quarter of FY24.

Dixon Technologies consolidated net profit for Q1FY25 grew nearly 108% to ₹139.7 crore compared to ₹67.19 crore in Q1FY24. In Q1FY25 the company’s net profit grew more than 43% from ₹97.3 crore in Q4FY24.

Dixon Technologies is a contract manufacturer of devices such as televisions, washing machines, smartphones, LED bulbs, battens and CCTV security systems.

Shares of Dixon Technologies were trading at ₹12,596.4 apiece, up by 1.57%, on the NSE at 09:18 am.