Dixon Tech's Atul Lall is projecting an annual revenue of closer to Rs 40,000 crore for this fiscal, much higher than the earlier estimate of Rs 30,000-32,000 crore, riding on the booming mobile manufacturing segment, which he is calling as the 'biggest trigger for growth' for the company.
However, the shares of the electronic manufacturing services player are lower by 8% in early trade, after having doubled so far this year.
Dixon Tech's volumes in the mobile segment are touching 2.8 million handsets a month, and the company is aiming to ramp it up to 3.5 million in a 'couple of quarters,' Atul Lall told CNBC-TV18 in a conversation on October 25. This would be close to 40% of the total addressable outsourcing opportunity at present.
Dixon Tech also hinted at another large mobile phone brand is coming on board in a couple of quarters, and said production for a leading android phone brand is set to begin from next month. The management said it is confident of taking the mobile business margins to 4.5% in a couple of years from the present levels of around 3.7%.
Read more on Dixon Tech's results right here.
During the quarter, Dixon acquired 50.10% stake in Ismartu India, turning it into a subsidiary of the company.
The sales from Home Appliances vertical grew by 22% on year to Rs 444 crore, however, its revenue and operating profit contribution fell in Q2FY25 to 4% and 11% respectively.
The revenue from Consumer Electronics segment was flat YoY at Rs 1413 crore, but its revenue and operating profit contribution by 12% each.
Read More: Dixon Tech's explosive growth momentum continues
The next growth triggers could come from semiconductor components where investments are underway, Dixon Tech said, adding that this will deepen the value addition by the company.
Brokerages like Investec and Nomura have responded positively to Dixon’s Q2 results. Read more here.
Dixon said it plans to close deals in the server segment very shortly.
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