Sunday, October 31, 2021

DIXON PAT up 20% at 63 cr , Revenue up 71% | Stock Outlook


Dixon Technologies Q2 PAT up 19.63% at Rs62.64cr as higher material and employee costs restrict profit growth

Dixon Technologies Ltd reported 71.09% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs2,804cr

Dixon Technologies Ltd reported 71.09% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs2,804cr. The revenues were higher by 50.15% on a sequential basis compared to Rs1,867cr revenues in the Jun-21 quarter.

For the first half of the fiscal year FY22 ended September 2021, Dixon Technologies reported a 116.6% growth in top line revenues at Rs4,671cr. The company operates in the consumer electronics outsourcing space where the net margins are extremely low.

The consolidated Profit after tax (PAT) for the Sep-21 quarter was up 19.63% at Rs62.64cr on the back of a spike in material and employee costs in the midst of the supply chain constraints.

Electronics outsourcing being a low margin business, the incremental impact of higher volumes on profits is quite limited. The PAT was higher by 244.93% sequentially.

Net margins at 2.23% was actually lower than 3.20% on a yoy basis in Sep-20 quarter and more than twice compared to NPM of just 0.97% in Jun-21 quarter.

Stock Outlook

4300 - 4500 is strong support zone in short zone. Strong long term outlook. Accumulate and prefer buy on dips.

Disclaimer- The information on this blog are based on my personal opinion and experience, it should not be considered professional financial investment advice and in no way it should be considered as a tip. We does not take any compensation of any kind whatsoever from any reader, user and company that are mention on this website. We are not SEBI registered financial advisor or analyst.

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