Dixon Technologies (DIXON) Q4 16/17 earnings summary

Executive summary

• FY17 consolidated revenue rose to Rs 24,567,589,166 from Rs 13,894,166,574; profit after tax was Rs 536,330,923 versus Rs 273,811,635.

• Growth reflected diversification across consumer electronics, home appliances, lighting, mobile phones and reverse logistics, alongside investment in joint ventures and a planned Tirupati manufacturing facility.

• The year included the amalgamation of two wholly owned subsidiaries, conversion to a public limited entity after year-end, and preparation for an IPO.

Financial highlights

• Consolidated operating revenue was Rs 24,567,589,166 versus Rs 13,894,166,574 in FY16; other income was Rs 16,749,449 versus Rs 28,186,777.

• Consolidated profit before tax was Rs 671,593,323 versus Rs 352,846,707; profit after tax was Rs 536,330,923 versus Rs 273,811,635.

• Standalone revenue was Rs 16,443,105,118 versus Rs 12,520,749,848; standalone profit after tax was Rs 497,915,295 versus Rs 214,331,764.

• Consolidated EBITDA was Rs 905,593,956 versus Rs 596,162,040, including other income of Rs 16,749,449 versus Rs 28,186,777.

Outlook and guidance

• Management was cautiously optimistic on the Indian economy and planned to expand manufacturing capacity and establish the Tirupati facility, with Andhra Pradesh subsidies and tax exemptions for a defined period.

• Plans included security-system production through the AIL Dixon joint venture at Tirupati, including CCTV cameras and DVRs, and deeper reach into South India.

• Strategy centered on growing ODM activity, broadening product offerings, expanding reverse logistics, strengthening customer relationships and pursuing cost leadership.

• Planned product expansion included fully automatic washing machines, higher-wattage and industrial lighting, and mobile-phone PCB assembly and charger integration.