Shares of Dixon Technologies fell on July 28 after the company said that it has cut its volume growth target for the television vertical to 3.6 million units from 4 million units for the current financial year.
In an interview to CNBC-TV18, the company’s Vice Chairman and Managing Director Atul Lall said that he expects revenue guidance for television segment to be lowered due to slowdown in demand.
The executive also warned that there is a slowdown in demand in other business verticals of the company threatening its growth outlook for 2022-23. The company now expects its revenues to grow 7-10 percent in the current financial year while margins are seen at 4-4.5 percent.
Lall pointed out that the recent softness in global commodity prices should provide comfort on margins going ahead.
The company on July 27 reported a more than two-fold increase in consolidated net profit to Rs 45.4 crore for the quarter ended June aided by the low base of the year-ago quarter, which was hampered by the second wave of the COVID-19 pandemic.
The contract manufacturer’s consolidated revenue from operations surged 52.9 percent on a year-on-year basis to Rs 2,855.7 crore.
The sharp rise in topline was led by the consumer electronics business where Dixon Tech recorded a 303 percent on-year rise in revenues to Rs 932.2 crore.
At 10:20 am, shares of Dixon Technologies were down 1.7 percent at Rs 3,636.7 on the National Stock Exchange.
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