Dixon Tech Q1 Results: Stock falls 5% after other income aids profit, margins compress
Dixon Technologies saw its stock price drop by 5% following mixed Q1 results that showed revenue growth but compressed EBITDA margins. While net profit increased significantly, this was largely attributed to a surge in 'other income' rather than core operational performance.
Shares of Dixon Technologies Ltd. fell as much as 5% on Friday, July 31, in response to its June quarter results which turned out to be mixed, compared to analyst expectations.The company's revenue grew by 21.1% from the same quarter last year to ₹15,548 crore. A CNBC-TV18 poll was expecting the figure to be ₹14,769 crore.Earnings Before Interest, Tax, Depreciation and Amortisation for the quarter declined by 4.1% from last year to ₹463 crore from ₹483 crore earlier. The figure is lower than the CNBC-TV18 poll of ₹499 crore.EBITDA margin during the quarter narrowed to 3% from 3.8% last year. A CNBC-TV18 poll was expecting the figure to be 3.4%.Net profit for the quarter stood at ₹663 crore from ₹225 crore last year. The profitability figure was aided by a sharp jump in other income, which stood at ₹528 crore from just ₹1.6 crore in the base quarter.Shares of Dixon Tech fell as much as 5% after the results announcement to ₹13,776. The stock is still up 14% so far for the year.This is breaking news and will be updated with more.
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