Dixon Technologies shares in focus as subsidiary enters into MoU with Cellecor Gadgets; check details

The stock gained in the morning trade. However, in the afternoon deals, shares were trading 1.4% lower at ₹17,785 apiece on the NSE.

"Cellecor is a leading name in the consumer electronics industry, known for its innovative and cutting-edge technology. With a commitment to making happiness affordable, Cellecor offers a diverse range of products encompassing mobile phones, smart TVs, soundbars, smartwatches, kitchen appliances, and home appliances like washing machines, air conditioners, refrigerators, air coolers, geysers, heaters, & many more products," the company said in its press release.

Commenting on this occasion, Atul B. Lall, Vice Chairman & Managing Director of Dixon Technologies, stated that “We are delighted to announce that Dixon Electro Manufacturing has entered into an MOU with Cellecor for the manufacturing of refrigerators and their related components."

The chairman added, "By this partnership, Dixon Electro Manufacturing will increase its customer base in the refrigerator segment. Further, this partnership represents a strategic milestone and commitment to the ‘Make in India’ initiative and to cater to the evolving needs of Indian consumers."

Dixon will hold a majority stake of 51% in the joint venture, and the rest will be held by Vivo India.

"Dixon Technologies (India) Limited (Dixon) and Vivo Mobile India Private Limited (Vivo India) sign a binding term sheet for a proposed joint venture to undertake OEM business of electronic devices, including smartphones," the filing said.

However, neither Dixon nor Vivo India will have any stake in each other.

Dixon Technologies Q2 FY25 Results

For the quarter ended September 30, 2024 (Q2 FY25), Dixon Technologies (India), a leading company in the electronic manufacturing services (EMS) space, reported over a three-fold rise in its consolidated net profit to ₹411.7 crore, thanks to a strong performance by its Mobile and EMS Division.

Its revenue from the operations grew twofold to ₹11,534.08 crore in the September quarter. It was ₹4,943.18 crore in the year-ago period.

However, revenue from its Consumer Electronics & Appliances (LED TV & Refrigerator) was down 2% to ₹1,413 crore. The contribution of this segment also declined to 12% in Q2 FY25 from 29% a year ago.

Shares of Dixon Technologies (India) have zoomed 180% in the past year.