Shares of Dixon Technologies (India) Ltd. fell as much as 4% on Friday after the electronics manufacturing services (EMS) company reported June-quarter earnings that were flattered by a sharp jump in one-time other income, while its core operating performance weakened.
The company reported a consolidated net profit of Rs 663 crore for the quarter ended June, nearly three times the Rs 225 crore posted a year ago. However, the surge was largely driven by a spike in other income, which jumped to Rs 528 crore from Rs 2 crore in the year-ago period.
Dixon Technologies shares closed 4.09% lower at Rs 13,751 on the NSE on Friday after investors reacted to weak core earnings, despite headline profit being boosted by a one-time surge in other income
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Excluding the one-time gain, Dixon's adjusted profit stood at around Rs 135 crore, down 40% from the corresponding quarter last year, indicating pressure on the company's underlying earnings.
Revenue from operations rose 21.1% year-on-year to Rs 15,548 crore, compared with Rs 12,836 crore a year earlier, supported by continued demand across its electronics manufacturing services business.
Operating performance, however, softened during the quarter. EBITDA declined 4.1% to Rs 463 crore from Rs 483 crore a year earlier, while the EBITDA margin narrowed to 3.0% from 3.8%, reflecting pressure on profitability.
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Separately, the company's board approved the re-appointment of Atul Lall as Managing Director for a further five-year term, subject to shareholders' approval.
Dixon Technologies Q1 FY27 (Consolidated, YoY)
- Net profit stood at Rs 663 crore versus Rs 225 crore
- Revenue up 21.1% to Rs 15,548 crore from Rs 12,836 crore
- Ebitda down 4.1% to Rs 463 crore from Rs 483 crore
- Margin down 80 basis points to 3% from 3.8%
- Other income rose to Rs 528 crore from Rs 2 crore
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