Dixon Technologies Q2FY23 PAT up 23.3% at Rs77.25 crore as higher inventory lock-in subdues profit growth

25 Oct 2022 , 11:58 AM

Dixon Technologies Ltd reported 37.91% growth in total revenues for the September 2022 quarter on consolidated basis at Rs3,867cr.

Revenue growth was 35.44% in sequential terms. The company is into the CEM (contract electronics manufacturing) business and runs the factor shop on behalf of a number of large electronics producers.

However, this is a cyclical business and payment cycles can depend on the business environment and that has been tight on liquidity at this point of time. Global business has also been impacted.

Consolidated Profit after tax (PAT) for September 2022 quarter was up 23.32% at Rs77.25cr while sequential profit growth was 69%.

The profit growth was lower than the sales growth as higher inventory lock-ins and delays in receivable impacted the cost of funds.

PAT margins were at 2.00% in the Sep-22 quarter compared to 2.23% in the Sep-21 quarter but better than 1.60% in June 2022 quarter.

For the first half of the fiscal year FY23 ending September 2022, net profits were higher by over 50% at Rs122.55 crore.

Financial highlights for Sep-22 compared yoy and sequentially

	Dixon Tech
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 3,866.77	₹ 2,803.78	37.91%	₹ 2,855.07	35.44%
Net Profit (Rs cr)	₹ 77.25	₹ 62.64	23.32%	₹ 45.70	69.04%
Diluted EPS (Rs)	₹ 12.88	₹ 10.35		₹ 7.58
Net Margins	2.00%	2.23%		1.60%