Budget 2023: Dixon Tech soars 7% on duty cut on mobile phone, TV components

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26 Aug, 2025 12:21

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Shares of Dixon Technologies gained 7 percent in the afternoon trade after Finance Minister Nirmala Sitharaman lowered the duty on mobile phone components and TV sets in her Budget 2023-24.

The Budget cut customs duty on mobile components like cameras and batteries and offered concession on lithium-ion batteries. Duty on open cells used televisions was cut to 2.5 percent, which is likely to make TVs cheaper and boost demand.

These announcements are seen benefiting contract manufacturers like Dixon Technologies, said market participants. The reduction in custom duty on certain mobile phone components and television parts will help promote their manufacturing in India.

The Economic Survey, released a day ahead of the Budget, said the electronic industry’s significant growth drivers are mobile phones, consumer electronics, and industrial electronics.

India has become the second-largest mobile phone manufacturer globally, with the production of handsets going up from 6 crore units in FY15 to 29 crore units in FY21.

“These numbers are expected to improve as more domestic and global players set up and expand their bases in India,” the survey said.

Dixon Technologies is one of the fastest-growing mobile phone manufacturers in the country. The Noida-based company is in the process of setting up in-house capabilities to manufacture key components including sheet metal, plastic parts, batteries and adaptors.

The company’s management said in its earnings call that for the next year, it is looking for two customer account acquisitions in the mobile segment, which would add to Dixon Technologies’ top line.

It added, “As far as the guidance for next year is concerned, clearly, we have a big growth coming in all the verticals, our wearables, hearables, telecom, TV, as we mentioned can be 15% to 18% growth. Fully-automatic washing machine can be 100% growth for us because the business just started to ramp up now”.