Dixon Technologies (DIXON) Q4 19/20 earnings summary

Executive summary

• FY20 consolidated revenue rose 47% YoY to ₹4,400.1 crore; EBITDA increased 62% to ₹228.3 crore and PAT grew 90% to ₹120.5 crore.

• Growth reflected strong volume expansion, customer additions, ODM migration, backward integration and cost control, despite weak domestic demand and COVID-related disruption.

Financial highlights

• Consolidated revenue from operations was ₹4,400.1 crore vs ₹2,984.4 crore in FY19; profit before tax was ₹156.8 crore vs ₹93.8 crore.

• Consolidated EBITDA margin improved to 5.2% from 4.7%; PAT margin rose to 2.7% from 2.1%.

• Standalone revenue was ₹3,671.5 crore and PAT ₹110.6 crore; consolidated PAT was ₹120.5 crore.

Outlook and guidance

• TV capacity is planned to rise to 5.5 million units by Q4 FY21, targeting 40% of India’s requirement; TV production was expected to increase 40% in FY21.

• Fully automatic washing-machine production was planned at Tirupati from November 2020; mobile capacity expansion and PLI participation were also planned.

• Export revenue was expected to start through existing multinational customers; cost rationalisation, factory restarts and the PLI scheme were cited as growth supports.

• Medical electronics production with Molbio was planned at Tirupati; the Truelab analyzer had ICMR approval for COVID-19 testing and strong demand was reported.