Dixon, Syrma clock revenue jump while chip costs rose

Contract electronics makers Dixon Technologies India Ltd and Syrma SGS Technology Ltd reported much higher second-quarter revenue. However, while Syrma, the smaller of the two, saw its profit double, Dixon’s profit fell without the one-time gain in the previous period, and higher working capital burden.

Dixon’s total revenue from operations rose 47% from the same period last year to ₹21,794 crore, and 40% from the previous quarter. Net profit fell 45% to ₹411 crore, mainly due to accounting: Dixon recorded a fair-value gain of ₹57 crore on its stake in Aditya Infotech, compared to ₹465 crore a year earlier.