Dixon Technologies (DIXON) Q4 18/19 earnings summary

Executive summary

• FY19 consolidated revenue rose 5% to ₹29,900.8 million; EBITDA grew 21% to ₹1,405 million and PAT increased 4% to ₹633.6 million.

• Growth was driven by scale expansion, new customer additions, a shift toward ODM solutions and backward integration across several segments.

• Consumer electronics contributed 40% of revenue and lighting 30.8%; ODM revenue share reached 71% in lighting and 9% in consumer electronics.

Financial highlights

• Consolidated revenue from operations was ₹29,844.5 million versus ₹28,533.9 million in FY18; total income was ₹29,900.8 million versus ₹28,575.7 million.

• Consolidated EBITDA was ₹1,405 million, up 21% YoY; PAT was ₹633.6 million, up 4% YoY, with PAT margin stable at 2.12%.

• Consolidated profit before tax rose to ₹938.1 million from ₹882.3 million; finance costs increased to ₹250.4 million from ₹127.8 million.

• Operating cash flow was negative ₹30.6 million, compared with positive ₹678.8 million in FY18, amid higher working-capital deployment.

Outlook and guidance

• FY20 outlook was supported by healthy order books in consumer electronics and washing machines, expanded ODM offerings and planned launches in new product categories.

• Plans included fully automatic washing machines, deeper street-lighting penetration and ODM mobile solutions; LED bulb exports were expected to generate opportunities in FY20.

• Acquisition of Padget’s remaining 50% stake was expected to add to FY20 group revenue; long-term ambition remained a double-digit operating margin.