Dixon Technologies' business is “Almost back to normal” this month, vice chairman and managing director Atul Lall said on Wednesday, a day after the company reported earnings for the June quarter.
The electronic goods contract manufacturer reported a strong set of numbers on a weak base, on account of the coronavirus lockdown. But its margin was under pressure due to higher input costs.
It reported a net profit of Rs 18.16 crore for the quarter ended June 30, as against Rs 1.6 crore for the corresponding three-month period a year ago. Its total income increased 261.15 percent to Rs 1,867.67 crore.
The lower-than-expected earnings of the company were likely a result of the impact of the second wave of COVID-19 infections but now it expects the margins to return to 4 percent-level.
“The recovery started from June and in July, we are almost back to normal. The margins should come back to the original levels of 4 percent," Lall told CNBC-TV18.
On the company's semiconductor inventory, he said, “We have also been impacted because of supply chain issues, but we will be comfortable in the current quarter (Q2FY22) and also in Q3 as far as the semiconductor availability is concerned.”
The company had received approval for IT hardware manufacturing under the government’s PLI scheme earlier in July. It was one of the 14 companies that were granted approval. On approval, Lall had said Dixon will contribute immensely towards building a strong ecosystem for strengthening the manufacturing space in India.
For the entire management interview, watch the video