Shares of electronics manufacturer Dixon Technologies jumped more than 4 percent on August 3 afternoon after the government restricted imports of electronic items such as laptops, tablets and personal computers.
Dixon is a business to business (B2B) electronics manufacturing services player with a 75 percent low-margin original equipment manufacturer (OEM) mix.
While announcing the restrictions, the government said import of laptops, tablets, personal computers, ultra-small form factor computers, and servers will be permitted against a licence. Certain use cases have been exempted from the restrictions.
These include the import of one laptop, tablet, personal computer, or ultra-small form factor computer through online portals, couriers, or post.
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The restrictions are also not applicable to imports under baggage rules, the Directorate General of Foreign Trade said in a notification.
Further, an exemption from an import licence has been provided for up to 20 of these items per consignment for the purpose of research and development, testing, benchmarking and evaluation, repair and re-export, and for product development.
“Given imports shall be allowed subject to condition that the imported goods shall be used for the stated purposes only and will not be sold. Further, after the intended purpose, the products would either be destroyed beyond use or re-exported," the notification said.
Q1 earnings
On July 25, Dixon Technologies reported a consolidated net profit of Rs 67.19 crore for the quarter ended June 30, 2023, up 48 percent from Rs 45.43 crore in the year-ago period.
The company reported a 15 percent year-on-year (YoY) rise in consolidated revenue from operations at Rs 3,271.50 crore.
Earnings before interest, tax, depreciation and amortization (EBIDTA) were at Rs 134.72 crore growing 34 percent. The EBIDTA margin was up 60 basis points at 4.1 percent.
At 1.08 pm, the stock was trading at Rs 4,318 on the Natioanl Stock Exchange, up 4.6 percent from the previous close.
Dixon Technologies has gained 11 percent this year and 15 over the year.
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