Dixon Technologies (DIXON) Q4 20/21 earnings summary

Executive summary

• Record FY21 consolidated revenue of ₹6,448 crore and PAT of ₹160 crore despite pandemic disruption and 45–60 days of Q1 shutdowns.

• Revenue grew 47% YoY, EBITDA 26% and PAT 33%; recovery and demand strengthened from Q2, with a strong second half.

Financial highlights

• Consolidated revenue from operations rose to ₹6,448.17 crore from ₹4,400.12 crore; EBITDA reached ₹288 crore from ₹228 crore.

• Consolidated PAT increased to ₹159.79 crore from ₹120.50 crore; total comprehensive income was ₹159.74 crore.

• Operating margin was 4.4% vs. 5.1% and net profit margin 2.5% vs. 2.7%; rising commodity costs pressured ODM margins.

Outlook and guidance

• Management expects robust revenue growth and higher profitability margins, supported by operating leverage, ODM growth and new customer wins.

• Mobile manufacturing capacity is planned to expand to 15 million phones annually over the next few years; TV capacity is set to reach 5.5 million in FY22.

• Fully automatic washing machine production is targeted for Q3 FY22; plans also cover IT hardware, telecom and networking, refrigerators, wearables and lighting components.

• Exports are expected to become a major growth driver; mobile PLI approval provides a 4–6% incentive on eligible incremental smartphone sales, subject to sales and investment targets.

• Industry 4.0 implementation, manufacturing execution software and automation are intended to improve traceability, productivity and quality; zero defects is a FY22 goal.