Shares of Dixon Technologies hit their record high on Friday after the firm said it inked a term sheet to form a joint venture (JV) with HKC Corporation. The JV will be involved in manufacturing of Liquid Crystal Modules (LCM), thin film transistor liquid crystal display modules (TFT-LCD Modules), assembly of end products like, smartphones, TVs, monitors and auto displays and selling HKC branded end products in India.
Dixon Technologies shares hit a record high of Rs 10,085 against the previous close of Rs 9762.35 on BSE.
The market cap of the consumer durables firm rose to Rs 59,993 crore. Total 0.23 lakh shares of the firm changed hands over the counter amounting to a turnover of Rs 22.57 crore on BSE.
The JV will be subject to receipt of necessary statutory approvals and signing of definitive agreements, the company said in a regulatory filing.
HKC develops and manufactures semiconductor display panels and other core display devices and intelligent display terminals.
In terms of intelligent display terminal business, HKC mainly produces smart TV and other TV terminals and displays, all-in-one machines, laptops, tablets, advertising machines, smart fitness goggles and other IT and smart IOT terminals.
The Indian electronics manufacturing services provider reported a 20% on-year rise in net profit, on the back of a surge in mobile phone orders. Net profit in Q4 came at Rs 97 crore. Quarterly revenue rose 52% on-year to Rs 4,675 crore.
However, profit after tax remained flat sequentially as compared to the previous quarter, while revenue declined 3% quarter-on-quarter.
The company’s EBITDA margin also saw a 90 bps slide to 4.3% as compared to 5.2% in Q4 FY23.
The board recommended a dividend of Rs 5 per equity share.
Dixon Technologies (India) is the largest home-grown design-focused and solutions company engaged in contract manufacturing products in the consumer durables, lighting and mobile phones markets in India.