Dixon Technologies Q2 net profit skyrockets 265% y-o-y

The shares of Dixon Technologies, a contract manufacturer of electronics, will be the subject of attention on Friday following the company’s announcement of a 265% year-over-year increase in net profits to ₹412 Crore, driven by higher production of mobile phones and an extraordinary gain of ₹209.6 Crore in the fiscal second quarter of FY2025.

In the July-September period, Dixon reported revenues of ₹18,116 Crore, a 120% year-over-year rise from ₹4,944 Crore in the same period last year.

Dixon Technologies, however, declared in the second fiscal quarter that it will transfer 95 lakh equity shares of the joint venture to Aditya Infotech in order to sell its whole 50% investment in AIL Dixon. This transaction produced a one-time exceptional gain. 

After accounting for the extraordinary gain, the company’s net profit in Q2FY25 climbed 109% year-over-year to ₹236 Crores. 

The company still thinks Dixon has a great chance to grow in the IT hardware industry, which has a lot of room for expansion. Dixon’s entry into the components manufacturing market is also anticipated to boost the company’s profitability and competitiveness, setting it up for future expansion, according to the brokerage firm.

Additionally, the corporation authorized the issuance of 1.85 lakh stock options in one or more tranches to its workers as well as those of its subsidiaries and joint ventures. These stock options have a face value of ₹2 each and can be converted into an equivalent number of equity shares of the business.

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