Business Insights:

During 1HFY20, the company had registered strong revenue growth of ~92% driven majorly by new customer additions including large players such as Xiaomi, Samsung etc.

Higher growth was from consumer electronics segment (114% yoy growth), mobile phones (146% yoy) and lighting (60% yoy).

DIXON is expected to register robust revenue growth of ~60% in FY20E (from a low base in FY19) driven by Consumer electronics growth of 80% yoy.

Growth in home appliance (washing machine) should ~20% yoy from a high base. Lighting segment and mobile phones should see strong growth of 35% yoy and 80% yoy respectively

PAT growth should be higher at 74% due to adherence to new tax rate norms leading to lower tax rate.

High dependence on single customer (on high growth segment) and uncertainty on medium term growth visibility on certain segments (reverse logistics and mobile) coupled with possible margin pressure remains a concern.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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