Dixon Technologies Q1 Results: Revenue growth below 100% for the first time in five quarters, margin flat

Dixon Technologies Ltd. reported its results for the June quarter, after market hours on Tuesday, July 22.

Revenue for the company increased by 95% from last year to ₹12,835 crore. A CNBC-TV18 poll had projected the figure to be ₹12,535 crore. Growth in Dixon's topline is aided by volume-led growth in mobile and rising contribution from the telecom and the IT hardware business.

This is the first time in five quarters that the company has reported sub-100% growth in its topline

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 97% year-on-year to ₹482.4 crore, which is absolutely in-line with the CNBC-TV18 poll figure of ₹482 crore.

EBITDA margin for the quarter remained flat at 0.6%, while net profit increased by 69% from last year to ₹225 crore, which is also in-line with the CNBC-TV18 poll estimate of ₹228 crore.

Ramp-up of export operations, coupled with new launches by Motorola in India, is also likely to have aided growth during the quarter. Smartphone sales during the quarter are likely to be at 9.5 million, driven by Motorola export volumes and higher domestic sales.

Shares of Dixon Technologies ended 1.1% lower on Tuesday, at ₹16,114, ahead of the results announcement. The stock has risen 11% in the last one month.