Consumer Durables 1QFY20 Result Update

Dixon Technologies Limited BUY

Strong start to FY20

Institutional Research Dixon Technologies (Dixon) reported a robust 94% y/y revenue growth led by stellar
129% & 71% y/y growth in Consumer Electronics and Lighting segment. However,
changes in segment revenue mix impacted gross margins which declined 206bps y/y to
CMP (Rs) 1,992 11.4%. Strong operating leverage benefits, higher share of ODM business (36% vs 29%
y/y) and backward integration together led to 23bps improvement in EBITDAM to 4.6%.
Target (Rs) 2,800
Management highlighted that there has been a limited impact due to demand slowdown
Upside (%) 41 in its key segments and attributed the robust growth to the strong market position of its
anchor customer Xiaomi in Consumer Electronics and acquisition of new customers in
lighting segment. Dixon is in advanced stage of discussion with a leading domestic &
Nifty: 10,926 Sensex: 36,958 global player (18-19% domestic market share) in the mobile feature phones market and
expects the deal to materialise in the ensuing quarter. Strong profitability and sharp
Key Stock Data improvement in working capital cycle has led to ~Rs300m of free cashflows for the
Bloomberg DIXON IN company. We upgrade our FY20EEPS estimates by 8.8% while maintaining our FY21EEPS
estimates and expect Dixon to deliver 33.7% EPS CAGR over FY19-21E. Improvement in
Shares O/s Mn (FV INR10) 11.3
the working capital cycle has been one of the key positives in the quarter. Maintain BUY
Mkt Cap(USD Bn/INR Bn) 0.3/22.6 with Rs2,800 TP.
52-week high/low 3070/1560 Operating leverage benefits drive margin expansion across verticals
6m daily avg vol(INR Mn) 22 Consumer Electronics segment reported a robust 128.9% y/y revenue growth led by strong
Free Float % 37% demand from its anchor customer Xiaomi. Positive operating leverage on back of increase in
volume resulted in 112bps y/y expansion in EBITDAM to 2.2%. Strong volume growth in Lighting
Price Performance segment led to robust 70.8% y/y revenue growth (87% growth ex CFL) with 22bps y/y expansion
in EBITDAM to 7.8%. While revenue in Home appliances segment grew 15.2% y/y, EBITDAM
(%) 3m 1yr 3yr
improved marginally by 11bps to 10.8%. Mobile phones revenue reported a robust 96.3% y/y
DIXON (11.3) (17.3) - revenue growth, however adjusting for Padget acquisition, revenue de-grew by 1.9% y/y. Benefits
Nifty (1.3) (2.4) 9.5 from backward integration in PCBA led to strong 114bps y/y expansion in EBITDAM to 2.2%.
NSE500 (2.3) (6.7) 7.9 Overall EBITDAM expanded 23bps y/y to 4.6%, while net profit grew 84.8% y/y to Rs 236m.
BSE Midcap (2.3) (6.7) 2.6 Efficient working capital management led to improvement in working capital cycle from 7 days in
FY19 to negative 3 days in 1QFY20.
2yr 3yr 5yr Capacity expansion plans across verticals
Dixon plans to expand its LED battens capacity to 800K/month from 300K/month in phase-I and
Avg.PER (x) - - -
then from 800K to 1.5m/month in phase-II by 3QFY20. Company is also targeting penetration in
the downlighters and plans to expand capacity to 500K from 160K in phase-I and then to 1m
Shareholding Pattern
units in phase-II. In home appliances, Dixon plans to further expand capacity in semi-automatic
(%) Dec18 Mar19 Jun19 washing machines (WM) to 1.5m units p.a from 1m currently with a capex of Rs70-80m and
Promoter 38.9 38.9 38.9 should complete the expansion in 2HFY20.
FII 7.0 6.0 7.2 Management expects the growth trajectory to continue in 2Q as well
Management highlighted that the company has generated highest monthly sales in July’19 and
DII 23.5 23.8 22.4
expects the growth to remain robust in 2Q led by strong growth across verticals. Dixon is also in
Others 30.6 31.3 31.5 discussion for acquisition of a large brand in LED TVs and is focused on increasing share of ODM
business in Consumer Electronics. It has already converted Panasonic TVs of certain inch sizes to
ODM category.
Nikhil Gada
nikhil.gada@amsec.in Maintain BUY
+91 22 4343 5284 After a rather subdued FY19 where Dixon was setting up the building blocks for a sustainable
growth driven business model, the company has started FY20 on a strong note. We expect the
Karan Shah growth trajectory to remain strong on a low base and expect the stock to re-rate especially in the
karan.shah@amsecglobal.com backdrop of balance sheet improvement and robust return ratios. Maintain BUY with Rs2,800TP.
+91 22 4343 5288

Exhibit 1: Key Financials (Consolidated) Exhibit 2: Key Indicators

Y/E Mar (Rs mn) FY17 FY18 FY19 FY20E FY21E Y/E Mar FY17 FY18 FY19 FY20E FY21E
Sales 24,570 28,416 29,844 41,118 45,517 Equity 110 113 113 113 113
yoy (%) 76.8 15.7 5.0 37.8 10.7 RoE (%) 30.2 23.8 18.3 21.5 21.7
EBIDTA 912 1,127 1,349 1,940 2,219 RoCE (%) 36.5 33.5 22.5 26.2 30.6
yoy (%) 60.6 23.5 19.7 43.9 14.4 RoIC (%) 37.7 36.4 23.7 27.6 32.3
Reported PAT 476 609 634 908 1,132 D:E (x) 0.2 0.1 0.3 0.2 0.1
yoy (%) 73.7 28.0 4.0 43.3 24.7 PER (x) 46.0 37.0 35.6 24.8 19.9
EBIDTAM (%) 3.7 4.0 4.5 4.7 4.9 P/BV (x) 11.1 7.2 6.0 4.8 3.9
NPM (%) 1.9 2.1 2.1 2.2 2.5 EV/Sales (x) 0.9 0.8 0.8 0.6 0.5
Adj. EPS (Rs) 43.3 53.8 55.9 80.2 99.9 EV/ EBITDA (x) 25.2 20.3 17.6 12.0 10.4
Source: Company, AMSEC Research
mandar.puri@amsecglobal.com
Refer Disclosures & Disclaimer at the end of the report. Our reports are available on Bloomberg ASNM <GO>, ThomsonReuters, Factset and Capital IQ August 14, 2019
 Dixon Technologies Limited / 1QFY20 Result Update

Exhibit 3: 1QFY20 Performance (Consolidated)

(Rs mn) 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 YoY(%) QoQ(%)
Net Revenue from operations 6,846 8,789 6,803 5,978 5,927 7,389 7,940 8,588 11,469 93.5% 33.5%
Cost of raw materials consumed 6,779 7,628 5,859 4,960 5,178 6,382 6,533 7,789 10,007 93.2% 28.5%
Changes in inventories -697 198 52 96 -49 38 424 -267 156 na na
Employee benefits expense 155 178 195 200 182 191 193 273 284 56.3% 4.2%
Other expenses 398 435 410 448 358 448 403 418 497 38.9% 18.9%
Total expenditure 6,635 8,439 6,517 5,704 5,669 7,059 7,553 8,213 10,943 93.0% 33.2%
EBIDTA 211 350 286 274 258 330 387 375 526 104.0% 40.2%
Other income 8 22 2 16 15 18 6 19 6 -61.2% -69.7%
Depreciation 29 39 40 45 46 50 59 62 76 65.4% 23.3%
Finance costs 31 35 26 43 51 51 62 88 99 92.0% 11.9%
Exceptional 0 0 0 0 0 0 0 0 0 na na
Profit before tax 158 298 223 203 175 247 272 244 357 103.7% 46.2%
Provision for taxation 50 91 71 62 48 82 96 79 121 154.4% 53.7%
PAT 108 207 153 141 128 164 176 165 236 84.8% 42.6%
Equity Capital (FV=Rs10) 110 113 113 113 113 113 113 113 113
Adj. EPS (Rs) 9.6 18.3 13.5 12.5 11.3 14.5 15.6 14.6 20.8 84.8% 42.6%
Source: Company, AMSEC Research

Exhibit 4: Segment-wise trend

Revenue (Rs Mn) 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20
Consumer Electronics 1,595 2,661 2,455 1,736 1,650 4,662 2,287 2,136 2,228 3,597 2,879 3,233 5,098
yoy% na na na na 3% 75% -7% 23% 35% -23% 26% 51% 129%
Lighting Products 935 1,160 1,531 1,882 1,737 1,881 1,992 2,132 1,899 1,904 2,341 3,049 3,243
yoy% na na na na 86% 62% 30% 13% 9% 1% 18% 43% 71%
Home Appliances 409 599 451 421 394 581 718 810 857 1,038 923 926 988
yoy% na na na na -4% -3% 59% 92% 118% 79% 29% 14% 15%
Mobile Phones 1,233 2,803 2,160 1,911 2,926 1,417 1,584 772 732 637 1,511 669 1,437
yoy% na na na na 137% -49% -27% -60% -75% -55% -5% -13% 96%
Reverse Logistics 133 161 159 174 140 248 223 123 144 101 32 26 24
yoy% na na na na 6% 54% 40% -29% 2% -59% -86% -79% -83%
Security Systems 0 0 0 0 0 0 0 5 67 111 254 687 679
yoy% na na na na na na na na na na na na na
Total 4,306 7,384 6,756 6,124 6,963 8,789 6,803 5,978 5,927 7,389 7,940 8,588 11,469
yoy% na na na na 62% 19% 1% -2% -15% -16% 17% 44% 94%

Segment EBITDA (Rs Mn) 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20
Consumer Electronics 44 84 82 44 45 113 35 29 25 129 60 41 114
yoy% na na na na 2% 34% -57% -34% -45% 14% 74% 40% 362%
Lighting Products 53 60 25 34 69 129 140 135 145 111 189 216 254
yoy% na na na na 30% 117% 457% 300% 110% -14% 35% 61% 76%
Home Appliances 54 75 107 79 47 68 84 110 92 85 99 95 107
yoy% na na na na -13% -9% -22% 40% 96% 25% 19% -14% 16%
Mobile Phones 3 29 12 6 15 24 18 9 8 6 44 17 32
yoy% na na na na 492% -17% 41% 53% -45% -76% 150% 90% 299%
Reverse Logistics 33 37 24 29 36 16 11 -4 -7 1 -3 -9 -1
yoy% na na na na 8% -58% -56% -115% -118% -92% -124% 117% -83%
Security Systems 0 0 0 0 0 0 0 -4 -5 -1 1 16 20
yoy% na na na na na na na na na na na na na
Total 186 285 250 191 211 350 286 274 258 330 390 375 526
yoy% na na na na 13% 23% 14% 44% 22% -6% 36% 37% 104%

EBITDA Margin (%) 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20
Consumer Electronics 2.8% 3.2% 3.3% 2.5% 2.7% 2.4% 1.5% 1.4% 1.1% 3.6% 2.1% 1.3% 2.2%
Lighting Products 5.7% 5.1% 1.6% 1.8% 4.0% 6.9% 7.0% 6.3% 7.6% 5.8% 8.1% 7.1% 7.8%
Home Appliances 13.2% 12.5% 23.6% 18.7% 11.9% 11.7% 11.7% 13.6% 10.7% 8.1% 10.8% 10.2% 10.8%
Mobile Phones 0.2% 1.0% 0.6% 0.3% 0.5% 1.7% 1.1% 1.1% 1.1% 0.9% 2.9% 2.5% 2.2%
Reverse Logistics 24.7% 23.0% 15.4% 16.4% 25.3% 6.3% 4.8% -3.4% -4.5% 1.2% -8.2% -35.7% -4.6%
Security System 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% -87.8% -6.8% -1.1% 0.3% 2.3% 3.0%
Total 4.3% 3.9% 3.7% 3.1% 3.1% 4.0% 4.2% 4.6% 4.3% 4.5% 4.9% 4.4% 4.6%
Source: Company, AMSEC Research

mandar.puri@amsecglobal.com
August 14, 2019 2
 Dixon Technologies Limited / 1QFY20 Result Update

Exhibit 5: 1QFY20 - Revenue Mix Exhibit 6: 1QFY20 - EBIDTA Mix

0% 0%

6% 4%
6%
22%
13%

20%
44%
9%

28% 48%

Consumer Electronics Lighting Products Home Appliances

Consumer Electronics Lighting Products Home Appliances
Mobile Phones Reverse Logistics Security System
Mobile Phones Reverse Logistics Security System

Exhibit 7: Robust 93.5% y/y revenue growth to Rs

Exhibit 8: Gross margins declined 206bps y/y to 11.4%
11,469m

12.1%

12.1%

12.1%

11.2%

11.0%

13.1%

15.4%

13.5%

13.1%

12.4%

12.4%

11.4%
11,469

9.3%
4,306

7,384

6,756

6,124

6,963

8,789

6,803

5,978

5,927

7,389

7,940

8,588

1QFY17

2QFY17

3QFY17

4QFY17

1QFY18

2QFY18

3QFY18

4QFY18

1QFY19

2QFY19

3QFY19

4QFY19

1QFY20
1QFY17

2QFY17

3QFY17

4QFY17

2QFY18

3QFY18

4QFY18

1QFY19

3QFY19

4QFY19

1QFY20
1QFY18

2QFY19

Gross Margin (%)

Revenue (Rs mn)

Exhibit 9: EBITDAM improved by 23bps y/y to 4.6% Exhibit 10: Net profit grew 84.8% y/y to Rs 236m

4.9%
4.6% 4.6%
4.5%
4.3% 4.3% 4.4%
4.2%
4.0%
3.9%
3.7%

3.1% 3.1%
156

101

207

141

164

176

165

236
124

108

153

128
94
186

285

191

211

286

274

330

390

526
250

350

258

375

2QFY17

4QFY17

2QFY18

4QFY18

2QFY19

3QFY19

4QFY19

1QFY20
1QFY17

3QFY17

1QFY18

3QFY18

1QFY19
1QFY17

2QFY17

4QFY17

1QFY18

3QFY18

4QFY18

2QFY19

3QFY19

1QFY20
3QFY17

2QFY18

1QFY19

4QFY19

PAT (Rs Mn)

EBIDTA (R s Mn) EBIDTA Margin (%) (RHS)

Source: Company, AMSEC Research

mandar.puri@amsecglobal.com
August 14, 2019 3
 Dixon Technologies Limited / 1QFY20 Result Update

Conference Call Takeaways

Consumer Electronics:
• Anchor client Xiaomi contributes ~41%/68% of the volume/revenue in the segment
• Dixon reduced its working capital cycle in consumer electronics from Rs1,360m in FY19
to Rs700m in 1QFY20 due to improved relationships with Xiaomi and expects the WC
employed in consumer electronics to be in the range of Rs700-900m.
• Panasonic and Sanyo have migrated to ODM manufacturing in LED TVs and these two
brands combined currently contribute 8-9% to overall revenues in consumer electronics.
• Dixon manufactures AC PCBs for Rexxam which is a strategic partner of Daikin in India.
The product delivered a robust growth of 54% in 1QFY20.
Lighting:
• Share of ODM increased from 34% in 1QFY19 to 83% in 1QFY0
• Management plans to add various regional tier 2 & 3 brands which would help to expand
its volume in the segment
• Company is in advanced talks with anchor customers for exports and is also
independently looking to penetrate the exports market. Dixon expects the exports revenue
to kick start from 4QFY20 or start of FY21.
Home appliances:
• Management expects the home appliances segment volume to grow at 30% in FY20
• Dixon is setting up a 500k capacity for fully automatic WM at its Tirupati plant with ~Rs
250-300m capex. Dixon expects to commence production from FY21.
• Fully automatic WMs will also be a 100% ODM business and the company already has
enquiries from large global brands & few Indian players.
Mobile Phones:
• Dixon is in advanced discussion with a leading feature phone brand to manufacture
~1.5m–1.8m units/month in its new Noida plant which shall commence from Oct’19
• 15-20% from this new plant is expected to be exported
Security Systems:
• Management expects to achieve ~3-3.25bn revenues with 2.7-3% EBITDAM from this
segment
Guidance:
• Management has guided for a capex of Rs 650m for both FY20 & FY21

mandar.puri@amsecglobal.com
August 14, 2019 4
 Dixon Technologies Limited / 1QFY20 Result Update

Financials (Consolidated) (Rs mn)

Profit & Loss Account Cash Flow Statement
Y/E (Mar) FY17 FY18 FY19 FY20E FY21E Y/E (Mar) FY17 FY18 FY19 FY20E FY21E
Net sales 24,570 28,416 29,844 41,118 45,517 PBT 664 882 938 1,365 1,702
COGS 21,801 24,870 26,093 36,061 39,827 Non-cash adjustments 256 268 489 -909 584
Staff Expenses 639 728 839 1,151 1,274 Changes in working capital -237 -269 -1,275 1,387 -467
Other Operating expenses 1,218 1,692 1,564 1,966 2,196 Tax Paid -155 -201 -183 -457 -570
Total expenditure 23,658 27,289 28,496 39,178 43,298 Cashflow from operations 529 680 -31 1,386 1,248
EBITDA 912 1,127 1,349 1,940 2,219 Capital expenditure -391 -758 -806 -650 -650
Depreciation 107 152 217 305 359 Change in investments 0 0 0 54 0
Operating Profit 805 975 1,132 1,635 1,860 Other investing activity -43 -239 168 0 0
Other income 14 42 56 49 58 Cashflow from investing -434 -997 -638 -596 -650
EBIT 819 1,017 1,188 1,684 1,918 Issue of equity 61 571 0 0 0
Interest 155 135 250 319 216 Issue/repay debt 62 -25 964 -361 -400
Exceptional income/expense 0 0 0 0 0 Interest Paid -155 -133 -251 -319 -216
Profit Before Tax 664 882 938 1,365 1,702 Dividends paid -84 0 -27 -27 -27
Tax 188 273 305 457 570 Other financing cashflow 32 4 0 0 0
Net Profit 476 609 634 908 1,132 Cashflow from financing -84 417 686 -707 -643
Extra Ordinary Items 0 0 0 0 0 Change in cash & cash eq 10 100 18 84 -45
Share of profit/(Loss) of associate 0 0 0 0 0 Opening cash & cash eq 17 27 127 144 228
Minority Interest 0 0 0 0 0 Closing cash & cash eq 27 127 144 228 183
Adjusted Net Profit 476 609 634 908 1,132 Free Cash Flow to firm 138 -78 -837 736 598
Share O/s mn 11.0 11.3 11.3 11.3 11.3
Adj EPS Rs 43.3 53.8 55.9 80.2 99.9
Key Ratios
Balance Sheet Y/E (Mar) FY17 FY18 FY19 FY20E FY21E
Y/E (Mar) FY17 FY18 FY19E FY20E FY21E PER SHARE
SOURCES OF FUNDS : EPS 43.3 53.8 55.9 80.2 99.9
Share Capital 110 113 113 113 113 CEPS 53.1 67.2 75.1 107.1 131.6
Reserves Total 1,861 3,037 3,669 4,550 5,654 BV 179.4 278.1 334.0 411.7 509.3
Total Shareholders Funds 1,971 3,150 3,782 4,663 5,767 VALUATION
Minority Interest 0 0 0 0 0 EV/SALES 0.9 0.8 0.8 0.6 0.5
Non-Current Liabilites 130 157 268 242 251 EV/EBIDTA 25.2 20.3 17.6 12.0 10.4
Long term borrowings 98 80 61 0 0 P/E RATIO 46.0 37.0 35.6 24.8 19.9
Defered tax liability 0 41 160 160 160 P/BV RATIO 11.1 7.2 6.0 4.8 3.9
Long-term provisons 32 36 46 82 91 GROWTH YOY%
Current Liabilities 5,786 6,349 9,291 14,214 14,604 Sales Growth 76.8 15.7 5.0 37.8 10.7
Short term borrowings 331 326 1,299 1,000 600 EBITDA Growth 60.6 23.5 19.7 43.9 14.4
Trade payables 5,030 5,147 7,397 12,392 13,094 Net Profit Growth 73.7 28.0 4.0 43.3 24.7
Other current liabilties 399 837 561 781 865 Gross Fixed Asset Growth 22.4 7.6 38.0 29.6 17.7
Short term provisions 27 38 33 41 46 PROFITABILITY
Total Equity & Liabilities 7,887 9,655 13,340 19,119 20,622 Gross Profit/ Net sales (%) 11.3 12.5 12.6 12.3 12.5
APPLICATION OF FUNDS : EBITDA / Net Sales (%) 3.7 4.0 4.5 4.7 4.9
Non Current Assets 1,506 2,077 4,168 4,458 4,750 NPM / Total income (%) 1.9 2.1 2.1 2.2 2.5
Fixed Assets Raw Material/Net Sales (%) 88.7 87.5 87.4 87.7 87.5
Gross Block 1,903 2,048 2,826 3,664 4,314 Int/PBIT (%) 19.0 13.2 21.1 18.9 11.3
Less : Accumulated Depreciation 539 259 464 769 1,128 ROE (%) 30.2 23.8 18.3 21.5 21.7
Net block 1,364 1,788 2,362 2,895 3,186 ROCE (%)* 36.5 33.5 22.5 26.2 30.6
Capital Work in Progress 20 125 188 0 0 ROIC (%) 37.7 36.4 23.7 27.6 32.3
Goodwill on consolidation 0 0 0 0 0 Tax / PBT (%) 22.4 28.3 31.0 32.5 33.5
Non current investment 0 0 0 0 0 TURNOVER (Days)
Long term loan and advances 4 2 54 0 0 Net Working Cycle 11 12 28 8 11
Other non-current assets 118 161 1,564 1,564 1,564 Debtors Velocity 42 38 63 72 71
Current Assets 6,251 7,228 10,471 14,391 15,603 Inventory 42 41 50 41 40
Current Investment 0 111 76 76 76 Creditors Velocity 75 66 90 110 105
Inventories 2,822 3,223 4,084 4,619 4,988 Gross Asset Ratio 14.2 14.4 12.2 12.7 11.4
Sundry Debtors 2,802 2,985 5,167 8,111 8,854 Total Asset Ratio 4.1 3.3 2.5 2.5 2.3
Cash and Bank 27 127 144 228 183 LIQUIDITY (x)
Others Current Assets 600 782 999 1,357 1,502 Gross Debt-Equity Ratio 0.2 0.1 0.4 0.2 0.1
Total Assets 7,757 9,305 14,638 18,849 20,352 Net Debt-Equity Ratio 0.2 0.1 0.3 0.2 0.1
Net current asset 768 968 2259 872 1340 Interest Coverage 5.3 7.6 4.7 5.3 8.9
Total Gross Debt 429 406 1361 1000 600 Current Ratio (x) 1.1 1.1 1.1 1.0 1.1
Total Net debt 402 280 1217 772 417 Quick Ratio (x) 0.6 0.6 0.7 0.7 0.7
Total Capital Employed 2431 3633 6933 5905 6618 PAYOUT
Payout (%) 16.7 4.4 4.3 3.0 2.4
Dividend (%) 60.0 19.7 20.0 20.0 20.0
Yield (%) - 0.1 0.1 0.1 0.1
Source: Company, AMSEC Research
mandar.puri@amsecglobal.com
August 14, 2019 5
 Dixon Technologies Limited / 1QFY20 Result Update

Recommendation rationale Sector rating

Buy: Potential upside of >+15% (absolute returns) Overweight: The sector is expected to outperform relative
Accumulate: >+5 to +15% to the Sensex.
Hold/Reduce: +5 to -5% Underweight: The sector is expected to underperform
Sell: < -5% relative to the Sensex.
Not Rated (NR): No investment opinion on the Neutral: The sector is expected to perform in line with
stock the Sensex.

Disclosures
This Report is published by Asian Markets Securities Private Limited (hereinafter referred to as “AMSEC”) for private circulation.
AMSEC is a registered Stock Broker with National Stock Exchange of India Limited and BSE Limited in cash and derivatives segments.
It is also having registration as a Depository Participant with CDSL and as Portfolio Manager. ‘AMSEC is registered Research Analyst
under SEBI (Research Analyst) Regulations, 2014 having Registration Number as INH000001378.’
AMSEC has other business divisions with independent research teams separated by Chinese walls, and therefore may, at times, have
different or contrary views on stocks and markets.
AMSEC or its associates have not been debarred / suspended by SEBI or any other regulatory authority for accessing / dealing in
securities Market. AMSEC, its associates or analyst or his relatives do not hold any financial interest in the subject company. AMSEC
or its associates or Analyst do not have any conflict or material conflict of interest at the time of publication of the research report
with the subject company. AMSEC or its associates or Analyst or his relatives hold / do not hold beneficial ownership of 1% or more
in the subject company at the end of the month immediately preceding the date of publication of this research report.
AMSEC or its associates / analyst has not received any compensation / managed or co-managed public offering of securities of the
company covered by Analyst during the past twelve months. AMSEC or its associates have not received any compensation or other
benefits from the company covered by Analyst or third party in connection with the research report. Analyst has not served as an
officer, director or employee of subject company and AMSEC / analyst has not been engaged in market making activity of the subject
company.
Analyst Certification: I, Nikhil Gada, the research analysts and authors of this report, hereby certify that the views expressed in
this research report accurately reflects my personal views about the subject securities, issuers, products, sectors or industries. It is
also certified that no part of the compensation of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of
specific recommendations or views in this research. The analyst(s) principally responsible for the preparation of this research
report and has taken reasonable care to achieve and maintain independence and objectivity in making any recommendations.

1. Name of the Analyst / Associate Nikhil Gada Karan Shah

2. Analysts’ ownership of any stock related to the information contained: Nil Nil
3. AMSEC ownership of any stock related to the information contained: None None
4. Broking relationship with company covered: None None
5. Investment Banking relationship with company covered: None None

mandar.puri@amsecglobal.com
August 14, 2019 6
 Dixon Technologies Limited / 1QFY20 Result Update

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