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What is the story about?
Shares of Dixon Technologies Ltd. are down another 1% on Thursday, January 29, looking to recover from the lows of the day, ahead of its December quarter results, that will be reported later in the day.
A CNBC-TV18 poll expects Dixon's revenue to grow by 3% from last year to ₹10,783 crore. Weaker than expected mobile sales during the quarter are likely to drag Dixon's topline.
Dixon's mobile business revenues are likely to be impacted as a key client, Motorola, has suffered a significant volume loss.
Smartphone sales are likely to be around 8.5 million in the December quarter, according to Kotak Institutional Equities, who cited lower sales from Xiaomi and Ismartu as the key drivers behind the numbers.
The company's Earnings Before Interest, Tax, Depreciation and Amortisation is likely to be at ₹411 crore, according to the poll, indicating a growth of 5% from last year.
EBITDA margins are likely to remain flat at 3.8% from 3.7% last year. Net profit may decline 12% year-on-year to ₹150 crore, according to the poll.
Higher memory prices have increased costs for low-end phones, thereby impacting demand.
According to PhillipCapital, Dixon's full-year growth guidance of 40% to 45% looks increasingly difficult, and a guidance cut from the company is imminent.
Shares of Dixon Technologies are trading 0.9% lower, looking to recover from the lows of the day at ₹10,186. The stock is down 16% in January so far, having delivered negative returns between 9% to as high as 31% in the January month of the previous three years.
A CNBC-TV18 poll expects Dixon's revenue to grow by 3% from last year to ₹10,783 crore. Weaker than expected mobile sales during the quarter are likely to drag Dixon's topline.
Dixon's mobile business revenues are likely to be impacted as a key client, Motorola, has suffered a significant volume loss.
Smartphone sales are likely to be around 8.5 million in the December quarter, according to Kotak Institutional Equities, who cited lower sales from Xiaomi and Ismartu as the key drivers behind the numbers.
The company's Earnings Before Interest, Tax, Depreciation and Amortisation is likely to be at ₹411 crore, according to the poll, indicating a growth of 5% from last year.
EBITDA margins are likely to remain flat at 3.8% from 3.7% last year. Net profit may decline 12% year-on-year to ₹150 crore, according to the poll.
Higher memory prices have increased costs for low-end phones, thereby impacting demand.
According to PhillipCapital, Dixon's full-year growth guidance of 40% to 45% looks increasingly difficult, and a guidance cut from the company is imminent.
Shares of Dixon Technologies are trading 0.9% lower, looking to recover from the lows of the day at ₹10,186. The stock is down 16% in January so far, having delivered negative returns between 9% to as high as 31% in the January month of the previous three years.
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