Dixon Technologies Q4 Results: Revenue and profit seen more than doubling; shares rise ahead of earnings

Shares of Dixon Technologies (India) Ltd. were trading with gains of 2% on Tuesday, May 20, ahead of the company's March quarter earnings announcement.

According to a CNBC-TV18 poll, net profit for the company is expected to zoom 136% year-on-year to ₹229 crore. This compares to ₹97 crore profit it reported in the same quarter last year.

Revenue may surge 117% from last year to ₹10,109 crore. The revenue growth is expected to be led by a strong growth in the mobiles and EMS segments.

Smartphone volumes are expected to be 9 million for the quarter, driven by higher Ismartu and Compal volumes quarter-on-quarter.

Dixon’s 70% revenue is from a single client Motorola, which saw slight slowdown in growth.

Better execution in telecom and IT hardware volumes will support strong growth in other EMS business.

Dixon's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) may increase 112% to ₹387 crore from ₹182.5 crore last year.

EBITDA Margin trend:

However, margins may fall 10 basis points to 3.8% from 3.9% last year.

Key Things to Look For:

1) Commentary from Mobile display unit
2) Revenue contribution from iSmartU
3) Commentary on the any disbursement under PLI
4) Any new customer onboarding
5) Volume commentary on tie-up with Vivo

At present, Dixon Technologies shares are trading 1.48% higher at ₹16,819. The stock has risen 12% in the last six months.