Shares of Dixon Technologies (India) rose 7 per cent to Rs 13,622 on the BSE on Monday after the company’s wholly-owned subsidiary Padget Electronics entered into an agreement with Motorola for manufacturing of smartphones. The products will be manufactured at Padget's manufacturing facility situated at Noida, Uttar Pradesh, the company said.
Padget Electronics is one of the few companies who recently received production linked incentive scheme (P/L scheme) approval from the government, the company said.
The stock of the consumer electronics company was trading close to its record high level of Rs 13,907 on December 18, 2020. In the past one year, it has surged 250 per cent, as against a 14 per cent rise in the S&P BSE Sensex.
Dixon Technologies is the largest homegrown design-focused and solutions company engaged in manufacturing of products in the consumer durables, lighting, mobile phones markets in India. Their diversified product portfolio includes consumer electronics like LED TVs, home appliances like washing machines, lighting products like LED bulbs and tube lights, downlighters, mobile phones and smartphones, and CCTV, DVRs and medical equipment.
Despite the disruption in operations due to Covid-19 pandemic-led lockdown, Dixon Technologies has witnessed a strong recovery in business post easing of the related curbs as reflected in the 17 per cent year on year (YoY) growth in revenues along with an improvement in the operating profitability in Q2FY2021.
As is prevalent in the industry, the company’s revenues are closely linked to the business plan and performance of its principals. A major part of Dixon Technologies’ revenues and operating profitability is derived from its top three customers—Xiaomi, Samsung and Panasonic, the rating agency ICRA said in recent rating rationale.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU