Dixon Technologies shares hit fresh all-time high as company partners with Chinese mobile firm Vivo; all you need to know

Shares of the company surged 4.35% to hit a fresh record high of ₹18,739.95 apiece on the BSE. Last seen, the m-cap of the company stood at ₹1,12,082.09 crore.

The electronics contract manufacturer and Chinese mobile phone company Vivo will set up a joint venture for the manufacturing of electronic devices, including smartphones, a regulatory filing said on Sunday.

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.

The facility will undertake part of Vivo's original equipment manufacturing (OEM) orders of smartphones in India and can also engage in OEM business of various electronic products of other brands.

"It gives us immense pleasure to partner with Vivo India, which is an iconic global brand, and we see them as an ideal strategic partner that shares our core values of quality, engineering prowess, and customer satisfaction.

"We believe that this association will bolster our manufacturing excellence and superior execution abilities and Vivo's leadership in the Indian business ecosystem. This partnership further strengthens our strong foothold in the Android smartphone ecosystem in India," Dixon Vice Chairman and Managing Director Atul B. Lall said.

Dixon Technologies share price performance

Shares of the company have jumped 178% so far in 2024 and nearly 187% in the past 12 months. 

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.

The company had posted a net profit of ₹113.36 crore in the July-September period a year ago. 

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.

Home appliances increased 22% to ₹444 crore, and lighting products rose 29% to ₹233 crore.