Dixon Technologies (DIXON) Q4 17/18 earnings summary

Executive summary

• FY17-18 consolidated revenue rose 14% YoY to ₹28,534 million; PAT increased 28% to ₹609 million, with EBITDA margin up 40 bps to 4.1%.

• Growth reflected demand across most product lines, new customer contracts, Tirupati production, and expansion into security systems; lighting growth was muted.

• Priorities include capacity expansion, ODM growth, backward integration, operational efficiency, and broader customer acquisition.

Financial highlights

• Consolidated revenue from operations was ₹285,339 lakh vs ₹249,872 lakh in FY16-17; PBT was ₹8,823 lakh vs ₹6,639 lakh.

• Consolidated PAT reached ₹6,090 lakh vs ₹4,757 lakh; EBITDA was ₹11,686 lakh vs ₹9,264 lakh, up 26% YoY.

• Operating cash flow was ₹6,801 lakh vs ₹5,288 lakh; capex on property, plant and equipment was ₹7,582 lakh vs ₹3,911 lakh.

• Consolidated finance costs declined to ₹1,345 lakh from ₹1,554 lakh; total debt was ₹4,463 lakh vs ₹4,673 lakh, down 4%.

Outlook and guidance

• FY18-19 outlook called for a strong order book and capacity expansion across divisions; profitability expected to benefit from operating leverage, backward integration, and new customer wins.

• Expected margin increase of ~2.5% was linked to order-book growth since July; the refurbishment order book included 250k-300k set-top boxes for FY18-19.

• Fully automatic washing machine production was planned for the coming year; investments were planned in capacity and operational efficiency.