Dixon Technologies Share tanks 18% in worst-ever fall on weak Q3, FY23 guidance cut
Electronics maker Dixon Technologies fell more than 18 percent on January 27 morning after the company cut its FY23 revenue estimate to Rs 12,200 crore – Rs 12,700 crore from Rs 15,000 crore following a weak October-December quarter.
At 10:00 AM, the stock was trading at Rs 2,740 on the National Stock Exchange, down 18.32 percent, the worst decline since September 18, 2017, when it debuted in the market. Trading volumes of 1.9 million shares were about 10 times the 20-day average volume of 1.4 million shares.
The company’s operating revenue fell 22 percent year-on-year to Rs 2,405 crore, while its net profit rose 13 percent to Rs 52 crore. Operating margin improved from 3.4 percent to 4.7 percent.
Speaking to CNBC-TV18, Group CFO Saurabh Gupta said, “We have lowered our outlook mainly due to slowdown in mobile business. The export market has slowed down. FY24 revenue outlook is likely to be lowered from Rs 19,000 crore.”
The company’s consumer electronics segment revenue fell 39 percent year-on-year to Rs 864 crore. Revenue from lighting products also fell 39 percent year-on-year to Rs 263 crore. The Mobile & EMS division’s revenue fell 3 percent year-on-year and 43 percent year-on-year to Rs 915 crore.
Foreign brokerage Credit Suisse has downgraded the stock to ‘neutral’ with a target cut to Rs 3,300 from Rs 4,500 per share. “Results were disappointing, valuations leave limited growth. Mobile revenue is gradually contracting as Motorola’s business stalls,” the firm said.
