Shares of Dixon Technologies (India) Ltd declined 2.88% to ₹16,089 in Wednesday’s session, even after the company posted a strong set of earnings for the March quarter. The decline came as investors factored in the one-time exceptional gain that significantly boosted the bottom line.
The company reported a consolidated net profit of ₹465 crore for Q4 FY24, compared to ₹97 crore in the same period last year. The profit surge was largely due to a ₹250.4 crore one-time gain. Adjusted profit figures were closer to Street expectations, which had estimated net profit at ₹229 crore, according to a CNBC-TV18 poll.
Revenue for the quarter jumped 121% YoY to ₹10,292.5 crore, exceeding estimates of ₹10,109 crore. EBITDA stood at ₹442.8 crore, up 143% from ₹182.5 crore in Q4 FY23. Margins also saw a slight improvement, with EBITDA margin expanding to 4.3% from 3.9% last year.
Despite the beat on revenue and EBITDA fronts, the stock witnessed profit booking as analysts turned cautious on the sustainability of gains without the exceptional income.
Dixon’s board has recommended a final dividend of ₹8 per equity share for FY24-25. The record date will be announced later, and the dividend will be paid within 30 days of the company’s 32nd Annual General Meeting, subject to shareholder approval.
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