This American multinational giant, Alphabet, is planning to shift its flagship Pixel smartphone production to India. This has boosted the optimism in the Dalal Street. In this article, we will try to understand the shift.
Price Movement
With a market capitalization of Rs 1,00,769 crore, the shares of Dixon Technologies (India) Ltd are currently trading at Rs 16,729 per share, down by 12.6 percent from its 52-week high of Rs 19,148.90 per share. In the last six months, the stock has delivered a positive return of 113.37 percent in the last one year.
About the announcement
Dixon Technologies surged 7 percent after Google announced plans to make Pixel smartphones in India for the US market. According to a report, Google parent Alphabet Inc. is said to be negotiating with Indian contract makers Dixon Technologies and Foxconn to shift some production of Pixel smartphones from Vietnam to India. This strategic decision would help to neutralize the possible risk of U.S. tariffs imposed on Vietnam, i.e., 46 percent, and make India a global Pixel manufacturing hub.Â
Dixon and Foxconn currently make around 43,000 to 45,000 Pixel smartphones every month in India for the domestic market. Dixon makes 65-70 percent of them, including the new models, at its Noida factory, and Foxconn works on older models at its Tamil Nadu factory.​
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Financial Highlights
The company reported a revenue of Rs 10,454 crores in Q3 FY25, up by 117 percent from its Q3 FY24 revenue of Rs 4,818 crores. However, it posted a revenue of Rs 11,534 crores in its previous quarter, down by 9 percent from its Q3 FY25 revenue.
Also, it reported a net profit of Rs 216 crores in Q3 FY25, up by 78 percent from its Q3 FY24 net profit of Rs 97 crores. However, it posted a net profit of Rs 412 crores in its previous quarter, down by 47 percent from its Q3 FY25 profit.
About the company
Dixon Technologies (India) Limited is a top electronics manufacturer that provides ODM and OEM services in India and worldwide. The company provides LED TVs, AC PCBs, washing machines, refrigerators, LED lighting, mobile phones, medical devices, wearables, set-top boxes, and security systems. The company also offers repair, refurbishment, and IT hardware services.
Written by Satyajeet Mukherjee
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