Dixon Technologies (DIXON) Q4 21/22 earnings summary

Executive summary

• FY22 consolidated revenue from operations rose 66% YoY to ₹10,697 Cr; EBITDA increased 33% to ₹383 Cr and PAT grew 19% to ₹190 Cr.

• Growth was broad-based, led by mobile and EMS, while cost inflation, freight disruption and component shortages weighed on margins.

• Portfolio expansion, PLI approvals, backward integration and new partnerships supported capacity growth and entry into telecom, IT hardware, wearables and air-conditioner PCBA.

Financial highlights

• Consolidated total income reached ₹10,701 Cr vs ₹6,450 Cr in FY21; EBITDA was ₹383 Cr vs ₹288 Cr, and PAT was ₹190 Cr vs ₹160 Cr.

• Consolidated profit before tax was ₹255 Cr vs ₹217 Cr; total expenses rose to ₹10,446 Cr from ₹6,233 Cr, including material costs of ₹9,890 Cr.

• Consolidated basic EPS was ₹32.31 vs ₹27.49; diluted EPS was ₹32.00 vs ₹26.87.

• Consolidated operating cash flow was ₹273 Cr; investing cash outflow was ₹464 Cr, including ₹421 Cr of capital expenditure.

Outlook and guidance

• FY23 business capex was expected at ₹300–320 Cr, for capacity additions, new verticals, backward integration, PLI-linked investment and infrastructure.

• New direct-cool refrigerator capacity of 1.2M units was planned, with mass production expected in FY24; IT hardware, telecom and networking output was expected to scale.

• Security-device capacity was planned to rise from 10M to 14M units annually in FY23; washing-machine capacity expansion to 2.4M units was also underway.

• FY22 mobile PLI sales and investment thresholds were met; an incentive claim was expected, subject to approval.

• A ₹2 per-share final dividend was recommended, subject to shareholder approval.