Dixon Technologies Ltd.’s share price declined over 9% in early trade on Friday despite impressive second quarter earnings.
Consolidated net profit in the quarter ended September jumped over 3.5 times, as per the financial results declared by the company on Thursday. Dixon Tech clocked a net profit of Rs 412 crore, which is 265% higher as compared to Rs 113 crore in the corresponding quarter of the previous fiscal.
The revenue from operations more than doubled to Rs 11,534 crore, as it accelerated by 133% as against Rs 4,943 crore in the year-ago quarter.
The earnings before interest, taxes, depreciation, and amortisation in the July-September period came in at Rs 426 crore, marking a jump of 114% from Rs 199 crore in the same quarter of the last fiscal. The Ebitda margin, however, declined to 3.7% from 4% in the year-ago period.
Chief Financial Officer Saurabh Gupta said Dixon Tech is sitting on a good balance sheet, while ramping up its client base of brands this year. He said the company is targeting to add mobile display manufacturing and non-semiconductor portion of mobiles capacities.
“Margins will be around 3.7-3.8%. We will see significant margin expansion with entry into components,” he told NDTV Profit.
Content retrieved from: https://www.ndtvprofit.com/markets/dixon-tech-share-price-tumbles-over-9-despite-strong-q2-earnings.
