Electronics manufacturing services firm Dixon Technologies fell over 18 percent on January 27 morning after the company cut its FY23 revenue guidance to Rs 12,200 crore ‐Rs 12,700 crore from Rs 15,000 crore following a weak October-December quarter.
At 10 am, the stock was quoting at Rs 2,740 a share on the National Stock Exchange, down 18.32 percent, its worst fall since September 18, 2017 when it made its market debut. Trading volumes at 1.9 million shares were about ten times the 20-day average volume of 1.4 lakh shares.
Follow our live blog for all the market action
The company's revenue from operations fell 22 percent year-on-year to Rs 2,405 crore while its net profit grew 13 percent to Rs 52 crore. Operating margins improved from 3.4 percent to 4.7 percent.
Mobile business in the slow lane
Speaking to CNBC-TV18, group CFO Saurabh Gupta said, "We have lowered our guidance primarily due to a slowdown in the mobile business. Export market has slowed. There is a likelihood of FY24 revenue guidance to be lowered from Rs 19,000 crore."
The company's consumer electronics segment revenue fell 39 percent YoY to Rs 864 crore. Lighting products' revenue also fell 39 percent YoY to Rs 263 crore. Mobile & EMS Division revenue fell 3 percent YoY and 43 percent sequentially to Rs 915 crore.
Foreign brokerage firm Credit Suisse has downgraded the stock to "neutral" with the target cut to Rs 3,300 from Rs 4,500 a share. "Results were disappointing, valuations leave limited upside. Mobile revenue to contract sequentially with stall in Motorola business," the firm said.
Weak consumer demand and lower prices of pass-through inputs led to revenue miss, it added.
Nuvama Institutional Equities has cut FY23-24 estimates by 35-20 percent after weak results. "But. growth seems healthy despite these cuts (with 30 percent return on equity). Hence, we retain Buy with a target price of Rs 3,865," it said.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
