Dixon’s subsidiary signs deal with Nokia to manufacture telecom products, shares up 2%

Dixon Technologies (India) said in an exchange filing on Wednesday that its subsidiary, Dixon Electro Appliances (DEAPL), has entered into an agreement with Nokia for the development and manufacturing of telecom products.

The manufacturing operations for these products would take place at DEAPL's facility in Noida, Uttar Pradesh. Shares of the company were trading over 2% higher on Wednesday.

Atul B Lall, Vice Chairman and Managing Director of Dixon Technologies (India) said the collaboration will bolster India’s manufacturing competitiveness. “The telecom products segment holds immense potential, and we are delighted that Nokia has chosen Dixon as its partner,” he said.

Dixon Technologies is a design-focused 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 tube lights, downlighters and mobile phones among others.

Dixon operates three research and development centres located in India and China. The company has 21 cutting-edge manufacturing facilities situated across Uttar Pradesh, Uttarakhand, and Andhra Pradesh.

Recently, the firm’s wholly-owned subsidiary Padget Electronics entered into an agreement with Longcheer and commenced production, manufacturing and sale of smartphones for large global brands with the latter’s design and technology.

The firm reported an 87% year-on-year (YoY) growth in its net profit at ₹97.07 crore during the third quarter of fiscal year 2024. The company’s revenue from operations doubled to ₹4,818 crore during the quarter compared to the same period in the previous fiscal. Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 64% to ₹186.71 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 the company have risen over 30% since the beginning of the year. The stock has gained over 189% in the last one year.