Dixon Technologies Aims For 40% Annual Topline Growth Over Next 4 Years

Dixon Technologies is set to grow its revenues by up to 40% on an annual basis over the next three to four years on the back of new opportunities from mobiles, IT and telecom product segments, the company’s Chief Financial Officer Saurabh Gupta told NDTV profit on Friday. 

Gupta noted that in terms of revenue, the company has grown from around Rs 2,000 crore five years back to a point where it may close FY25 with a topline of Rs 38,000-Rs 40,000 crore.

“We think we are sitting on a very large opportunity. Mobile is the largest trigger for our growth followed by IT hardware and telecom products. In all these three categories, we have a very large order book,” he said.

The Dixon Technologies CFO said the company has been able to acquire a lot of customers in these three categories.

“A lot of new opportunities are coming to us, which cannot be quantified right now. Around 35% to 40% growth should be doable on an annual basis for the next three to four years. Of course, there are a lot of optionalities in the business as well,” he said.

The top executive also talked about the large smartphone and feature phone market in India, giving an idea about the company’s order book. He revealed that the total market was around 220 million units, out of which the smartphone market was 150 million, and the remaining 70 million was for feature phones.

“Out of this, we have now created a capacity of almost 80 million – 50 million for smartphones and 30 million for feature phones. Out of this 50 million broadly, we have an order book of almost 40-45 million for the next financial year,” he said.

Gupta revealed the company is in discussions for new deals which may be closed in the next two quarters.

“Out of the 150 million smartphone market, the total outsourcing opportunity available is around 90-100 million smartphones. That we will be almost 40-45% of the market,” he said.

The Dixon Technologies CFO expected more brands to look at exports over the years, which would aid the company’s overall numbers.

“Over the years, we see some of the brands will look to India for exports. That can further add to the overall numbers for us,” Gupta said.

Shares of Dixon Technologies Ltd. closed 1.6% higher at Rs 17,980 apiece. Compared to this, benchmark Nifty 50 closed 0.89% higher at 24,768.30 points.