Shares of Dixon Technologies India hit their fresh 52-week low after the firm reported Q3 earnings that disappointed Dalal Street. Management also cut FY23 revenue guidance citing lower mobile revenue, which dampened investor sentiment.

The drop comes after the management cut its full-year revenue guidance for the current financial year to Rs 12,700 crore from Rs 15,000 crore earlier.

Dixon Technologies shares opened 7.86 percent lower at Rs 3100 on Friday against the previous close of Rs 3364.65.

Extending losses, the stock slipped up to 20.55 percent to a 52- week low of Rs 2673.05 on the BSE. The market cap of the consumer durables firm fell to Rs 16,304 crore.

Dixon Technologies (India) is the largest home-grown design-focused solutions company engaged in contract manufacturing products in the consumer durables, lighting, and mobile phones markets in India.

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Dixon Technologies (India) reported a 12 percent rise in consolidated net profit to Rs 52 crore despite a 22 percent fall in income to Rs 2,405 crore in Q3 FY23 over Q3 FY22.

Profit before tax in the third quarter stood at Rs 70 crore, up by 11 percent from Rs 63 crore recorded in the same period last year.

In Q3 of the previous fiscal, the firm reported a profit of Rs 46.38 crore. However, sales slipped 21.75% to Rs 2,404 crore in the December quarter against Rs 3,073.25 crore in the corresponding quarter of the previous fiscal.

Expenses during the quarter declined by 23 percent YoY to Rs 2,294 crore, due to a 2.6 percent YoY fall in raw material costs.

Consumer electronics revenue declined by 39 percent YoY, lighting products revenue contracted by 39 percent YoY, and Mobile & EMS Division revenue contracted by 3 percent YoY. However, on a YoY basis, the home Appliances segment and Security Systems division recorded revenue growth of 35 percent and 5 percent, respectively.

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