(1/20)
About:
Incorporated in 1993 by Mr. Sunil Vachani, DTIL is a diversified EMS company with operations in the electronic products
vertical such as consumer electronics, lighting, home appliance, closed-circuit television cameras (CCTVs), and mobile phones.
About:
Incorporated in 1993 by Mr. Sunil Vachani, DTIL is a diversified EMS company with operations in the electronic products
vertical such as consumer electronics, lighting, home appliance, closed-circuit television cameras (CCTVs), and mobile phones.
(2/20)
β’ DTIL has manufacturing facilities in Noida, Dehradun & Tirupati.
Dixon has received
approvals under the PLI scheme for five segments -
β’ Mobile phones
β’ Lightning
β’ Telecom & networking products
β’ Inverter controller boards for air conditioners
β’ IT hardware.
β’ DTIL has manufacturing facilities in Noida, Dehradun & Tirupati.
Dixon has received
approvals under the PLI scheme for five segments -
β’ Mobile phones
β’ Lightning
β’ Telecom & networking products
β’ Inverter controller boards for air conditioners
β’ IT hardware.
(3/20)
GOI Push for Indian EMS Industry:
For the Electronics industry, the government clearly aims to
position India as a global hub for ESDM by encouraging & driving
capabilities in the country for developing core components, &
enabling the industry to compete
globally.
GOI Push for Indian EMS Industry:
For the Electronics industry, the government clearly aims to
position India as a global hub for ESDM by encouraging & driving
capabilities in the country for developing core components, &
enabling the industry to compete
globally.
(4/20)
Incentives:
β’ PLI for IT hardware, Large
scale electronics manufacturing, White Goods, Telecom &
Networking Products.
β’ Phased Manufacturing Program to promote domestic
manufacturing of Mobile Phones and various subassemblies involved in manufacturing of Mobile Phones
Incentives:
β’ PLI for IT hardware, Large
scale electronics manufacturing, White Goods, Telecom &
Networking Products.
β’ Phased Manufacturing Program to promote domestic
manufacturing of Mobile Phones and various subassemblies involved in manufacturing of Mobile Phones
(5/20)
These schemes will boost investment in the entire value chain of the Indian electronics inds include designing & ensure local availability of components ICs, Chipsets, SoCs, Systems or IP Core & enable Indian Electronics industry to be more self-reliant & export oriented.
These schemes will boost investment in the entire value chain of the Indian electronics inds include designing & ensure local availability of components ICs, Chipsets, SoCs, Systems or IP Core & enable Indian Electronics industry to be more self-reliant & export oriented.
(6/20)
Business Segments:
β’ Consumer Electronics:
48% revenue share, Growth 34% YOY
The major customers in this segment are:
Xiaomi, Samsung, Hisense, VU, Nokia, Panasonic, TCL, Lloyd,
Flipkart, Philips, Toshiba
Business Segments:
β’ Consumer Electronics:
48% revenue share, Growth 34% YOY
The major customers in this segment are:
Xiaomi, Samsung, Hisense, VU, Nokia, Panasonic, TCL, Lloyd,
Flipkart, Philips, Toshiba
(7/20)
β’ Lightning Products:
12% revenue share, Growth 16% YOY
The major customers in this segment are:
Signify, Panasonic,
Wipro, Bajaj, Syska, Orient, Polycab, Luminous, Crompton
etc.
β’ Lightning Products:
12% revenue share, Growth 16% YOY
The major customers in this segment are:
Signify, Panasonic,
Wipro, Bajaj, Syska, Orient, Polycab, Luminous, Crompton
etc.
(8/20)
β’ Home Appliances:
7% Revenue share, 36% YOY growth.
The major customers in this segment are Samsung, Godrej,
Voltas- Beko, Panasonic, Lloyd, Flipkart, Haier, Reliance etc.
β’ Mobile Phones:
29% Revenue share, 274% growth YoY
Major clients: Samsung, Nokia, Motorola
β’ Home Appliances:
7% Revenue share, 36% YOY growth.
The major customers in this segment are Samsung, Godrej,
Voltas- Beko, Panasonic, Lloyd, Flipkart, Haier, Reliance etc.
β’ Mobile Phones:
29% Revenue share, 274% growth YoY
Major clients: Samsung, Nokia, Motorola
(9/20)
New opportunities which the company is perusing:
β’ Refrigerators
β’ Laptops & Tablets/ IT Hardware Products
β’ Telecom & Networking Products
β’ Inverter controller boards for Air conditioners
β’ Wearables & Hearables :
New opportunities which the company is perusing:
β’ Refrigerators
β’ Laptops & Tablets/ IT Hardware Products
β’ Telecom & Networking Products
β’ Inverter controller boards for Air conditioners
β’ Wearables & Hearables :
(10/20)
Key Business Risks:
β’ Globalisation Risk: Cheap Imports from China
β’ Industry Risk: If the whole Industry reach at a
stagnant or declining position
β’ Client Concentration Risk
β’ Regulatory Risk
β’ Technology Risk
Key Business Risks:
β’ Globalisation Risk: Cheap Imports from China
β’ Industry Risk: If the whole Industry reach at a
stagnant or declining position
β’ Client Concentration Risk
β’ Regulatory Risk
β’ Technology Risk
(11/20)
Strengths:
β’ Established track record and market position in EMS business β
DTIL has more than 2 decades of experience in the EMS
business. It has an established track record as well as leadership position in the key segments in which it operates.
Strengths:
β’ Established track record and market position in EMS business β
DTIL has more than 2 decades of experience in the EMS
business. It has an established track record as well as leadership position in the key segments in which it operates.
(12/20)
β’ Diversified revenue streams across product segments with reputed clientele β
The companyβs revenues are diversified across
consumer electronics (CE; mainly LED television), lighting, home appliances (mainly washing machines), mobiles and security
devices.
β’ Diversified revenue streams across product segments with reputed clientele β
The companyβs revenues are diversified across
consumer electronics (CE; mainly LED television), lighting, home appliances (mainly washing machines), mobiles and security
devices.
(13/20)
β’ DTILβs financial profile remains healthy with robust
improvement in FY22, despite a challenging environment, supported by increased volumes in the CE and mobile vertical.
It has recorded YoY revenue growth of 66% in FY22 (5 Year CAGR 34%), & ~53% in Q1 FY2023.
β’ DTILβs financial profile remains healthy with robust
improvement in FY22, despite a challenging environment, supported by increased volumes in the CE and mobile vertical.
It has recorded YoY revenue growth of 66% in FY22 (5 Year CAGR 34%), & ~53% in Q1 FY2023.
(14/20)
β’ HIGH TOL|TNW (3.6x) indicates high WC requirements
However, a part of DTILβs creditors remain covered by BGs extended by the clients, which reduces the credit risk.
Hence, its ability to raise additional long-term funds remain crucial to keep the TOL/TNW manageable.
β’ HIGH TOL|TNW (3.6x) indicates high WC requirements
However, a part of DTILβs creditors remain covered by BGs extended by the clients, which reduces the credit risk.
Hence, its ability to raise additional long-term funds remain crucial to keep the TOL/TNW manageable.
(15/20)
Liquidity:
DTIL is likely to generate healthy cash flow from operations, supported by back-to-back arrangement with most of its suppliers for the OEM business.
Its liquidity is supported by cash balance and liquid investments of βΉ276.46 crore as on June 30, 2022
Liquidity:
DTIL is likely to generate healthy cash flow from operations, supported by back-to-back arrangement with most of its suppliers for the OEM business.
Its liquidity is supported by cash balance and liquid investments of βΉ276.46 crore as on June 30, 2022
(16/20)
The company proposes to undertake substantial capex in the range of βΉ200-300 crore p.a., over the next two years, where the funding mix would comprise approx 60% external debt and the balance through internal accruals.
This is expected to increase
repayment obligation.
The company proposes to undertake substantial capex in the range of βΉ200-300 crore p.a., over the next two years, where the funding mix would comprise approx 60% external debt and the balance through internal accruals.
This is expected to increase
repayment obligation.
(17/20)
Key financial indicators FY22 vs 21:
β’ Operating Income: βΉ10,697cr vs βΉ6,448cr
β’ PAT: βΉ190cr vs βΉ160cr
β’ OPM : 3.6% vs 4.5%
β’ TOL/TNW : 3.6x vs 3x
β’ Interest Coverage: 7.8 vs 8.9
β’ 3 Year Sales growth CAGR: 53%
β’ 3 Year Profit growth CAGR: 44%
Key financial indicators FY22 vs 21:
β’ Operating Income: βΉ10,697cr vs βΉ6,448cr
β’ PAT: βΉ190cr vs βΉ160cr
β’ OPM : 3.6% vs 4.5%
β’ TOL/TNW : 3.6x vs 3x
β’ Interest Coverage: 7.8 vs 8.9
β’ 3 Year Sales growth CAGR: 53%
β’ 3 Year Profit growth CAGR: 44%
(18/20)
Shareholding Pattern:
β’ Promoters: 34.30%
β’ FIIs: 15.08%
β’ DIIs: 8.07%
β’ LIC: 5.68%
β’ Kamla Vachani: 7.44%
β’ Public : 19.79%
β’ Others: 9.65%
Shareholding Pattern:
β’ Promoters: 34.30%
β’ FIIs: 15.08%
β’ DIIs: 8.07%
β’ LIC: 5.68%
β’ Kamla Vachani: 7.44%
β’ Public : 19.79%
β’ Others: 9.65%
(19/20)
Conclusion:
DTIL has a leveraged capital structure and dependence on large few clients, although client concentration is on a downward trend. But it has a strong revenue growth expectations given the macro economic environment and DTILβ USPs.
Conclusion:
DTIL has a leveraged capital structure and dependence on large few clients, although client concentration is on a downward trend. But it has a strong revenue growth expectations given the macro economic environment and DTILβ USPs.
(20/20)
What are your thoughts about Dixon Techβs future prospects?
@caniravkaria @stockifi_Invest @VRtrendfollower @kuttrapali26 @MadhusudanKela
What are your thoughts about Dixon Techβs future prospects?
@caniravkaria @stockifi_Invest @VRtrendfollower @kuttrapali26 @MadhusudanKela
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