Dixon Technologies shares tumble 8% amid fall in overall market; BSE Consumer Durables index sinks 3%

The stock of the consumer durables sector company has jumped nearly 171% in the past 12 months on consistent key deals, order wins, and terrific financial performance.

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.

Besides, in December itself, Dixon Technologies announced that its wholly owned subsidiary Dixon Electro Manufacturing had entered into an MOU with Cellecor to manufacture refrigerators and their related components for Cellecor.

"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.

The fall in the company's shares on Wednesday was in line with the overall market trend.

The benchmark indices were trading 0.6% lower during the trade with all the sectoral indices in the red. The BSE CONSUMER DURABLES index was the biggest sectoral loser. It was trading at 63,376.72 levels, down 1,958.09 points, or 3%.

Dixon Tech revenue to hit ₹19K crore in FY25

Electronics manufacturing services firm Dixon Technologies expects to close the current fiscal with a revenue of around ₹19,000 crore, PTI reported in October 2024, citing a senior company official.

Dixon Technologies vice chairman and managing director Atul Lall said the company has plans to double its headcount over the next two years.

"In a short period of just 5-6 years, we have grown from Rs 1,500 crore, and this year, we should close at around Rs 19,000 crore. We have grown from 1,700 people to 27,000 people, and let me assure you that this is going to double in 2 years," Lall said.

Lall said this at the inaugural ceremony of Dixon Technologies' fourth mobile manufacturing plant set up under its wholly owned subsidiary Padget Electronics.

Dixon Technologies Executive Chairman Sunil Vachani said the company now has an annual smartphone production capacity of 70 million and is in the process of setting up the next mobile manufacturing unit, which will be spread over 10 lakh square feet.

Dixon Technologies Q2 FY25 Results

For the September quarter (Q2 FY25), Dixon Technologies (India) reported a more than three-fold rise in its consolidated net profit to ₹411.7 crore for the September 2024 quarter on 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 two-fold to ₹11,534.08 crore in the September quarter. It was ₹4,943.18 crore in the year-ago period.

Dixon Technologies' total expenses were ₹11,211.64 crore in Q2 FY25, up threefold.

The revenue from the Mobile & EMS Division rose threefold to ₹9,444 crore and contributed 82% of the revenue of Dixon Technologies.

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.

Dixon Technologies' product portfolio includes consumer electronics like LED TVs; home appliances like washing machines; lighting products like LED bulbs and tube lights, downlighters; mobile phones; wearables; and refrigerators. Dixon also provides solutions in reverse logistics, i.e., repair and refurbishment services of LED TV panels.