Dixon Technologies (India) Limited — PPTs, 20-05-2025: Investor Presentation

1. **Financial Highlights:**

Dixon Technologies has announced a board meeting to approve the financial results for the quarter and half-year. Consolidated revenue jumped 120% YoY to ₹10,304 Cr in Q4 and ₹38,880 Cr for FY25. EBITDA increased 128% YoY in Q4 to ₹454 Cr, with margins improving to 4.4%. Adjusted PBT rose 151% in Q4 to ₹326 Cr and 125% for the year to ₹1,110 Cr. PAT before minority interest surged 379% in Q4 to ₹465 Cr and 229% for FY25 to ₹1,233 Cr. Exceptional fair value gains of ₹250 Cr from stake sale were recorded. ROE and ROCE expanded strongly to 47.5% and 48.5%, respectively. The balance sheet remains solid with a net debt-equity ratio of (0.02) and net current assets of ₹620 Cr.

2. **Strategic Initiatives & Growth Drivers:**

Dixon is expanding its multi-segment presence with a 50.1% acquisition in Ismartu India Pvt Ltd. Capex stood at ₹896 Cr focused on capacity expansion, tech upgrades, and new product lines including hearables, wearables, and telecom equipment. The company is scaling its EMS and consumer electronics businesses to leverage growing demand and technology shifts.

3. **Business Developments:**

Three wholly owned subsidiaries—Dixon Electroconnect, Dixon IT Devices, and Dixon Teletech Pvt Ltd—were incorporated to bolster product presence and vertical integration. The Ismartu acquisition strengthens its position in specialized electronics. A strategic divestment of 50% stake in joint venture AIL Dixon Technologies led to significant fair value gains.

4. **Market Position & Competitive Advantage:**

Dixon solidifies its leadership in EMS and consumer electronics with a diversified portfolio and scale benefits. High ROCE (~48.5%) and margin improvements highlight efficiency in a capital-intensive sector. Strong working capital metrics (net WC days of 29) reflect disciplined cash management. Expansion into telecom and wearables further enhances competitiveness.

5. **Investor Implications:**

Robust revenue growth, margin expansion, and strategic investments indicate strong growth potential. While exceptional gains provide near-term boosts, core profitability remains healthy. A strong balance sheet and ₹254 Cr free cash flow support flexible capital allocation, including a proposed ₹8/share dividend. Investors should watch execution on integration and evolving market conditions in EMS and consumer electronics.