Dixon Technologies Share Price Extends Gains for the 2nd Straight Day; Up 1%

On December 17, 2024, Dixon Technologies’ share price (NSE: DIXON) traded 1.16% higher at ₹19,050.25 as of 10:00 AM on the NSE. The stock opened at ₹18,823.95, higher than the previous close of ₹18,831.80. The stock has gained 8.57% in the last 5 days.

Dixon-Vivo JV for Manufacturing

Earlier this week, Dixon Technology said that it has signed a binding term sheet with Vivo India for a joint venture focused on the OEM business, including manufacturing smartphones and other electronic devices.

As per the agreement, Dixon will hold a 51% stake, while Vivo India will own 49% of the joint venture. The primary aim of the venture is to manage a portion of Vivo India’s OEM smartphone orders in India, with the potential to expand into other electronic products for various brands.

The joint venture is contingent on the signing of definitive agreements, obtaining necessary regulatory approvals, and meeting customary conditions, the company said in a press release on the stock exchanges.

This collaboration is expected to enhance both companies’ manufacturing capabilities and expand their presence in India’s smartphone and electronics markets.

Dixon will bring its manufacturing expertise, while Vivo India will contribute its brand presence and market knowledge.

Q2 FY25 Financial Highlights

Electronics contract manufacturer Dixon Technologies reported a 265% year-on-year increase in net profit to ₹412 crore in the fiscal second quarter of FY2025, driven by higher mobile phone production and an exceptional gain of ₹209.6 crore.

The company posted a 120% year-on-year rise in revenues, reaching ₹18,116 crore for the July-September period, compared to ₹4,944 crore in the previous year. Dixon’s mobile phone manufacturing division accounted for 57% of quarterly revenues and 47% of operating profit.

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