Dixon Technologies reported strong Q4 FY25 results with 379% PAT growth and ₹8 dividend, but saw a 6% share price decline. The company also exited AIL Dixon JV, gaining ₹250.37 crore as exceptional income from the share swap deal.
The share price of Dixon Technologies fell by over 6% on Wednesday, reacting to Q4 and FY25 financial results. As of 02:20 PM IST, the stock was trading at ₹15,576, down by 5.98%, touching 50-DEMA.
On a YTD basis, the stock is down by 13.14% while in the last 12 months it is up by 73.81%. On Tuesday, May 20, Dixon Technologies reported impressive financial results for the fourth quarter of the financial year 2024-25, which ended on March 31.
The company posted a sharp year-on-year rise in profit after tax (PAT), which grew by 379% to ₹465 crore, compared to ₹97 crore in Q4 FY24. The company’s total income during the quarter surged 120% to ₹10,304 crore, up from ₹4,675 crore in the same quarter last year. On the operational side, earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 128% YoY to ₹454 crore in Q4.
For the entire financial year, Dixon Technologies reported a 229% increase in PAT, reaching ₹1,233 crore. Its operational revenue also grew significantly, increasing by 119% YoY to ₹38,880 crore.
Despite strong results, the company’s share price fell by over 6% as the company recognises AIL Dixon JV as an exceptional gain.
On July 8, 2024, eHolding Company signed a Share Subscription and Purchase Agreement with Aditya Infotech to sell its 50% stake (95 lakh shares) in AIL Dixon. In return, it received 73,05,805 shares of Aditya, amounting to a 6.5% stake on a fully diluted basis. The transaction resulted in a fair value gain of ₹250.37 crore, recognised as exceptional items in the quarters ended March 31.
Alongside its earnings, the company’s board recommended a final dividend of ₹8 per share, equivalent to 400% of the face value of ₹2. This dividend is subject to shareholder approval at the upcoming 32nd Annual General Meeting (AGM).
Dixon Technologies (India) Limited, incorporated in 1993, is a Electronic Manufacturing Services (EMS) company with operations in the electronic products vertical such as consumer electronics, lighting, home appliance, closed-circuit television cameras (CCTVs), and mobile phones. It also undertakes reverse logistics operations. Besides, it manufactures security surveillance equipment, wearables & audibles, AC-PCBs. Recently, it has entered a JV with Imagine Marketing Private Limited for designing and manufacturing wireless audio solutions in India.
Disclaimer: The article is for informational purposes only and not investment advice.
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