Dixon Technologies’ subsidiary signs pact with Longcheer for manufacturing and sale of smart phones

Dixon Technologies (India) said in an exchange filing on Friday that its wholly owned subsidiary Padget Electronics has entered into an agreement with Longcheer and has commenced the production, manufacturing and sale of smart phones for large global brands with the latter’s design and technology.

Shares of Dixon Technologies was trading over 2% lower on Friday.

Dixon Technologies said that Longcheer has strong capabilities in product-level solution design, hardware innovation design, system-level software platform development, lean production, supply chain integration and quality control capabilities.

The company provides integrated smart product services to global leading consumer electronics brands and tech enterprises across multiple countries and regions with global delivery capabilities, it said.

Dixon Technologies had recently entered into an agreement with Ismartu Singapore and Ismartu for the proposed acquisition of a majority stake in Ismartu India. Ismartu is engaged in electronics and mobile devices manufacturing with three state-of-the-art manufacturing facilities in Noida under the brand name of ‘Itel,’ ‘Infinix’ and ‘Tecno.’

Dixon Technologies is a design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India. The company’s diversified product portfolio includes consumer electronics like LED TVs, home appliances like washing machines, lighting products like LED bulbs and tubelights, downlighters and mobile phones among others.

During the third quarter of fiscal year 2024, the company reported a 100% rise in its consolidated revenue from operations at ₹4,818.25 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 64% year-over-year to ₹186.71 crore. Net profit jumped 87% to ₹97.07 crore during the quarter. For the nine-months ended December 31, 2023, Dixon reported a 60% rise in its net profits to ₹277.62 crore.

Shares of Dixon Technologies have risen over 14% since the beginning of the year. The stock has gained over 144% in the last one year.