Dixon

Dixon Technologies Gains 178% YTD, Powered by Vivo Alliance and Record Q2 Performance

 

Dixon Technologies (India) Limited has announced a major partnership with leading Chinese smartphone maker Vivo Mobile India Private Limited or Vivo India. The two companies penned a binding term sheet to commit to a joint new venture to undertake the Original Equipment Manufacturing (OEM) business of electronic devices, including smartphones. The partnership will be in a 51:49 ratio, with Dixon owning the majority equity and Vivo India owning the minority equity. However, neither company will hold stakes in the other. 

The joint venture aims to supply some quota of the OEM orders for Vivo in India and market production of electronic devices for other brands as well. The Vice Chairman & Managing Director of Dixon Technologies (India) Ltd., Atul B. Lall expressed optimism about the partnership, stating, “It gives us immense pleasure to partner with Vivo India, which is an iconic global brand, and we see them as an ideal strategic partner that shares our core values of quality, engineering prowess, and customer satisfaction.”

 

Shares Touch New All-Time High

 

Subsequent to this, the stock of Dixon Technologies rose by 4.35%  and touched a record high ₹18,739.95 per share on BSE, thus taking the market capitalization of the company to ₹1,12,082.09 crore. The value has surged 178% in 2024 and 187% over the past 12 months compared to Dixon Technologies. The relation with Vivo is assumed to further strengthen the stock’s action in the coming months.

 

Q2 FY25 Growth Ensures Optimism

 

Dixon Technologies’ reported a robust financial performance for the Q2 FY25, further boosting investor confidence. The company’s consolidated net profit in the second quarter rose three times to ₹411.7 crore from ₹113.36 crore in the same period last fiscal year. Revenue from operations has doubled from ₹4,943.18 crore in Q2 FY24 to ₹11,534.08 crore.

The Mobile and EMS Division was the main source of growth and fundamental to achieving such healthy operating numbers. However, Revenue from the Consumer Electronics & Appliances segment consisting of LED TVs and Refrigerators was down by 2% at ₹1,413 Crore. Its share of the contribution to total revenue reduced to 12% from 29% during the prior year. 

Other divisions recorded an upward trend, while home appliances generated ₹444 crores, up by 22% and lighting products by ₹233crorese, showcasing a 29% increase.

 

Strategic Alliance and Prospects of Growth

 

This partnership with Vivo also boosts Dixon Technologies’ position in the Indian market of Android smartphones. The synergy will strengthen the company’s manufacturing leadership and offer fresh opportunities across EMS.