Dixon Technologies India Ltd (NSE: DIXON) Q3 2025 Earnings Call dated Jan. 20, 2025
Corporate Participants:
Atul Lall — Managing Director & Vice Chairman
Saurabh Gupta — Chief Financial Officer
Analysts:
Bhoomika Nair — Analyst
Sanidhya — Analyst
Vipraw Srivastava — Analyst
Aditya Bhartia — Analyst
Madhav — Analyst
Siddhartha Bera — Analyst
Indrajit Agarwal — Analyst
Pulkit Patni — Analyst
Renu Baid Pugalia — Analyst
Onkar Ghurgardare — Analyst
Amarnath Bhagat — Analyst
Keyur Pandya — Analyst
Achal Lohade — Analyst
Nirransh Jain — Analyst
Natasha Jain — Analyst
Deepak Krishnan — Analyst
Shrinidhi Karlekar — Analyst
Presentation:
Operator
Please wait while you are joined to the conference. The conference is now being recorded ladies and gentlemen, good day and welcome to Dixon Technologies Q3 FY ’25 Earnings Conference Call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing the star then zero on your touchtone phone. I now hand the conference over to Ms Nayer from DAM Capital Advisors Limited. Thank you, and over to you, ma’am.
Bhoomika Nair — Analyst
Yeah. Good evening, everyone, and a warm welcome to the Q3 FY ’25 earnings call of Dixon Technologies Limited. We have the management today being represented by Mr Atul Lal, Managing Director and Vice-Chairman; and Mr Saurabh Gupta, Chief Financial Officer. At this point, I’ll hand over the floor to Mr Lal for his initial remarks, post which we’ll open up the floor for Q&A. Thank you, and over to you, sir.
Atul Lall — Managing Director & Vice Chairman
Thanks very much, Mumika. Good evening, ladies and gentlemen. This is Atul Lal, and we have the call — we have on the call today our CFO, Saurab Gupta.
Saurabh Gupta — Chief Financial Officer
Good evening, everybody.
Atul Lall — Managing Director & Vice Chairman
Thank you very much for joining the earnings call for the quarter ended December ’24. Despite a dynamic and challenging macroeconomic environment, company has delivered another quarter of robust performance. Our diversified revenue streams have insulated us from segmental volatility. Consolidated revenues for the quarter ended December 31, 2024 was INR10,461 crores as against INR4821 crores in the same-period last year, a growth of 117%. Consolidated EBITDA for the quarter was INR398 crores against INR190 — INR197 crores in the same-period last year, growth of 113%, consolidated PAT for the quarter was INR217 crores against INR97 crores in the same-period last year, growth of 124%. Besides leveraging industry tailwinds, we are scaling up across segments by taking higher share of wallet from our existing customers, our new customer additions and superior execution by managing the operations efficiently. Foraying into components will further increase the value addition with improvements in margins. With operational excellence, strong capital allocation discipline, higher asset turns and effective work capital management, we able to expand our ROCE and ROE to 42.6% and 33.3% respectively, as on end December ’24, reflecting consistent value-creation for the shareholders. Our asset turnover ratio remains among the best-in the industry, reflecting efficient utilization of resources to drive revenue growth. Despite ongoing investments in capacity expansions, we have managed to keep our gross debt-to-equity ratio at a comfortable level of 0.15, underscoring our commitment to maintaining a low leverage business model. And we continue to maintain a healthy liquidity position with cash-and-cash equivalents balance of INR22 crores, reflecting our disciplined cash-flow management. Our focus on optimizing working capital with a cash conversion cycle of negative three days has ensured sufficient liquidity to support our growth initiatives. We want to invest in our capacities, backward integration and diverse into new product categories to support long-term growth opportunities with huge focus on quality, manufacturing excellence and consistently meeting the needs of our principal customers and strengthened our position as a key player in the industry. We are excited about the opportunities ahead and confident in our ability to continue leading as India’s premier electronics manufacturing services company and consistently achieve revenue and profitability growth. Now I’ll share with you the business performance and insights with each of the segments. Mobile phones, revenue for the quarter for mobile was INR8,089 crores, which is a growth of 176% year-on-year. We have strengthened our partnership with leading global smartphone brands, reinforcing our position as a trusted mobile manufacturing partner. We have added one more new facility in Noida in addition to the six state-of-art manufacturing facilities, now capable of producing over 60 million in smartphones and AD. ISmartU subsidiary of Dixon Technologies has acquired land building, plant and machinery for INR133 crores to support scaling up of nothing smartphone brands and transient brands like, Techno and iTel, including the 3 million export volumes that have just been given to us to African markets for next financial year. We expect to export around 0.5 million to 0.6 million units in February, March this fiscal itself. For, we’ve been consistently clocking a volume of more than 1 million per month and order book looks healthy in coming months, including some decent export orders. We have been witnessing a consistent increase in well volumes of and expect this momentum to continue in the coming quarters and we also have a decent order book for OPO. We have successfully dispatched the first order production for a large global brand through Compal in December ’24 and the order book for coming months looks very promising. We have entered into a binding term sheet with Vivo for proposed joint-venture with Dixon holding 51% of the shareholding for manufacturer of smartphones. Vivo India shall transfer its manufacturing assets to JV. The transaction is subject to the execution of definitive agreements, completion of customary conditions precedent and receipt of applicable regulatory approvals under the foreign state controls laws of. We have finalized location of manufacturing of displays in partnership with HKC. We expect to start the manufacturing. By Q1 end or Q2 beginning of the next financial year, we are also looking to further deepen the level of manufacturing and look to get into precision components, mechanicals and camera modules and also battery packs in the component sector. A very senior source and a team under him has already been recruited to execute our foray into the component sector. For strengthening our backward integration, we are in active discussion with a global technology partner
Operator
To sorry to interrupt, the line for the management has been disconnected. Please stay connected ladies and gentlemen, the line for the management has been reconnected back. Yes, sir, please go-ahead.
Atul Lall — Managing Director & Vice Chairman
So extremely sorry, the line got disconnected. I’ll repeat, possibly you have missed out the last bit of what I was sharing. We have finalized the location for manufacturing of display modules in partnership with HKC, we expect to start the manufacturing by Q1 end and Q2 beginning of the next financial year. We are also looking to further deepen the level of manufacturing and looking into partnerships for precision components, mechanicals, camera modules and also battery pads. For this, a senior resource has been hired and a team is being built to execute these projects as we are keenly awaiting the rollout of component PLI by the Government of India shortly. For strengthening our backward integration capabilities and also servicing the large requirement in the industry and also creating a huge mode for Dixent. We are in active discussion with global technology partner for setting up a world-class display fab, which is critical components. It’s a fab in mobiles, IT hardware’s and consumer electronics segment. Currently, India relies heavily on import for displays and our foray into this segment will aim to localize production and bring greater control over-supply chain and cost efficiencies. This will significantly enhance our value addition. This is a complex project. We are in discussion with our partners. We are awaiting the rollout of policy guidelines under ISM2 by the Government of India to take this project forward. So this is a big, big step forward for us at Dixon. Consumer electronics, that is LED TVs and refrigerators. Revenue for the quarter was INR633 crores with an operating profit and margin of INR22 crores and 3.5% respectively. Out of this, the revenue for refrigerator business was INR166 crores. TV market has faced slower-growth going to subdued consumer demand. We have onboarded few multinational brands on our TV ODM solutions like and on Google TV and Linux platform. We are working closely with Amazon Fire TV Solutions and LG for, which is expected to be rolled-out by Q1 of next fiscal. We have also got some export inquiries. In addition to the interactive flat-panel display, we have now started manufacturing digital sinatis solutions from 65 to 100 inches in which we have a decent order book. Further, we plan to invest in CKT and planning to set-up a robotic panel assembly line for these products. We are also in discussion for partnership for manufacturing, industrial institution and automotive displace. Refrigerators within first year of operation, we have been able to capture around 8% of the Indian market in-direct pool categories owing to the thrust shown in us by our brands over execution and quality. We have also started exports to Nepal and actively exploring Sri Lanka and UAE markets. Order books for Q4 financial year ’25 and ’25-’26 looks very healthy. We are also expanding our capacity from 1.2 million per annum presentatively to 1.5 million ton. We have backwardly integrated many production processes and also we’re going to be adding and expanding our product portfolio by including including deep freezers, visi coolers, wine chillers and along with two door frost free and side-by-side in this particular category. Home appliances, that’s washing machines, revenue for the quarter was INR315 crores, a growth of 9% year-on-year. Operating profit was INR32 crores, a growth of 7% year-on-year. We are now regularly plotting monthly event volume of 25K in FATL, which is 100% growth year-on-year and more customer additions are in pipeline. We are now exploring addition of new product categories like robotic vacuum cleaners, water purifiers, chimneys and other large kitchen appliances in this particular business. In addition — in addition, we have initiated many new designs in both the categories, which is expected to be launched in Q4 of FY ’25. Lighting, revenue for the quarter was INR201 crores with an operating profit of INR14 crores. In the outdoor lighting range, we have received orders for and street lights from large brand. Backward integration of is expected to operationalize in Q4 financial year ’25, which will bring in more cost-effective meaningful margins. Telecom and networking products revenue in this segment for the quarter was INR977 crores, which is a growth of 48% quarter-on-quarter and we’re looking for more than 4x growth in revenues as compared to last fiscal. Our new Noda facility commenced production in November ’24 to meet the increased order book for our anchor customer. We’ve also ramped-up 5G FWA order, 5G FWA outdoor and indoor for domestic market and plan to double the capacity for the same to meet the customer requirements along with excess points, ONTs and Internet set of boxes. We have successfully completed the NPF IPT set of box and mass production has started. In-line with our strategy for backward integration, we have localized certain components like mechanicals, adapters and working on localizing more components to drive cost-efficiency and margins. With a healthy order book and a strong portfolio, we expect this vertical to be a key driver of company’s growth in coming years. Laptops, tablets and IT hardware products, our dedicated IT hardware product manufacturing unit is almost ready for production and trials are going to be starting in February ’25 and production Q1 of ’25-’26 for HP and ASUS. Mass production for Lenovo has already started along with and Anoida unit. We are in final discussions of entering into a JV with a large global OTM and largest supplier to the global brand to expand our product portfolio in high categories of notebook service and other IT products. The and revenue for this segment was INR129 crores for the quarter with healthy operating margin and good ROCE. We have a decent order book in this business. Rexham Dixon, our AC component JV with Japan, we achieved revenue of INR103 crores in this quarter. We are exploring business case for setting up a manufacturing facility in addition to Noda and Sri City Andhra Pradesh for meeting our anchor customer requirements. I would like to stop here. I and Saurabh are there to address your questions. Thank you thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and N1 on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sanja from Unicorn Assets. Please go-ahead.
Sanidhya
Hi, sir. Am I audible?
Atul Lall
Yes, please.
Sanidhya
Yeah. Hi, good evening. So my first question would be on the smartphone side. So we did see some ramp-up in Q2, but I think Q2 and Q3 volumes are same. Could you give highlight?
Atul Lall
Sorry, you didn’t get your question. You want to know the volumes of Q3?
Sanidhya
Yes, sir. Yeah, yeah. For smartphones feature and if you can separate between ISMA to Samsung and non-Samsung.
Saurabh Gupta
So I can tell you this mortal smartphone volumes for Q3 and nine months, excluding Samsung. So in Q3, we did a volume of almost 8.3 million and the first-nine months, we have done a volume of almost 21 odd 20.5 million and Samsung is over and above this volume.
Sanidhya
Okay. This 8.3 is including 8.3 is including. Okay. And feature phone?
Atul Lall
Feature phone, we did a volumes of 9.3 million in-quarter and overall nine months we have done a volume of 25 million.
Sanidhya
Great. And some insights I wanted on the camera module. So we are — we were highlighting that we are getting into camera modules. So can you share the market size and any currently, who are the players, what are large players in the segment and what are we aiming here?
Saurabh Gupta
So we never mentioned camera modules in our opening remarks.
Sanidhya
No. Not in this maybe previous quarter. So are we for — are we getting into camera modules anytime soon?
Atul Lall
So we are pursuing — we are pursuing camera modules as a part of a component strategy. Okay. We are in discussions with the potential partners who are large suppliers to our existing customers. So that’s a part of a component strategy. And camera module in all probability is going to be also a component which will be getting the PLI under the new component policy, the Government of India. So that’s a path being pursued, but it’s still in works.
Sanidhya
Okay. Okay. Thank you. I’ll come back for next. Thank you. Okay.
Operator
Thank you. The next question is from the line of Viprav Srivasta from PhillipCapital. Please go-ahead.
Vipraw Srivastava
Hi, sir. I’m audible, right.
Atul Lall
Yes, yes, please.
Vipraw Srivastava
Right. So firstly, on the Vivo tie-up with Dixon. So I mean, is there any PLI sharing happening with Dixon with Vivo for this tie-up?
Atul Lall
So that’s something commercially confidential. It’s not possible to wear those contours as well.
Vipraw Srivastava
Sure, sir. Sure, sir. No issues, sir. Sir, secondly, I mean, with the mobile phone PLI ending in FY ’26, which is the last year and recently Tata Electronics also came up with an announcement regarding phone manufacturing. We have other players like BYD’s networks all wanting to enter phone manufacturing. So how is seeing the competition shaping up post the mobile phone PLI ending?
Atul Lall
And so please appreciate that our business has grown from five-odd million to almost 28 million to 30 million in the current fiscal.
Vipraw Srivastava
Right.
Atul Lall
The order book that we have and in the Android ecosystem, we have all the brands as a customer, top eight brands as a customer. And also the order book we have is we see that it should be enhancing to almost INR40 million to 45 million and then going up to 60 million. That’s almost 65% to 70% of the outsourcing opportunity in India.
Vipraw Srivastava
Right.
Atul Lall
Further, we are investing huge resources in automation, robotics and taking the efficiency level to the best-in the world. Further, we are investing heavily into the component space, which coupled with the PLI advantages is going to put us ahead we feel of the competition. So that’s where we stand.
Vipraw Srivastava
Sure, sir. Sure. Sure, sir. Sir, last question on the long share deal with Opor, and all these guys. So currently has a 60 million manufacturing facility in India, which is owned by them. So I mean an India annually sells around 20 25 million phones. So I mean, what makes — what’s in it for OPO to share volumes with Dixon for their mobile phone manufacturing?
Atul Lall
So here, what we are offering to OPO is a long share ODM design solutions,
Vipraw Srivastava
Okay,
Atul Lall
Which are always going to be an outsourced mode.
Vipraw Srivastava
Okay. Right, right. So I mean, what kind of volumes we expect to get? I mean, any targets you have to get from OPU because it was the largest players in mobile phones.
Atul Lall
So we feel that in the next fiscal, we should be somewhere around 8 million to 7 million to 8 million, something like that?
Vipraw Srivastava
Yeah. Okay. Fair enough, sir. And if I’m allowed to ask last question, on the display fab, which told in the opening remarks, so I mean, obviously, it’s a very capital-intensive industry and you already have SKC for display modules, right? HKC also owns display fabs in China. So isn’t it a likely possibility that you might actually tie-up with HKC for these fabs or you will get a different partner?
Atul Lall
So we are going to be pursuing with our existing partner and let’s say it’s a last Call-IT for any company and so is the case for us.
Vipraw Srivastava
Right.
Atul Lall
And yeah.
Vipraw Srivastava
Okay. Okay. Thank you, sir. Thanks a lot.
Operator
Thank you. The next question is from the line of Aditya Bharthia from Investec. Please go-ahead.
Aditya Bhartia
Hi, good evening, sir. Sir, my first question is on the KHY acquisition. In respect of that acquisition, you spoke about some export order. Could you just kind of explain how large is the opportunity? What are we looking for? Is it just capacity expansion that we were aiming in facility, which is why we kind of acquired these assets?
Atul Lall
So Aditya, in iSmart you, we’re going to be starting exports of smartphones. We are targeting to export almost 3 million phones. It’s a beginning, which is going to generate a revenue for us of almost INR1,500 crores INR1,800 crores. Exports start from next month onwards. So we need to add capacity to existing iSmart capacity. Also, please appreciate that there is a migration from 4G to 5G phones, wherein the component count and the product configuration requires additional capacity. Then in ISR we also acquired a new customer nothing, which is the high-end phones, IP68 transparent enclosure for which also we require this capacity. So that’s the reason we are buying this asset and it is coming to us at a very reasonable cost. The actual value of the asset is much higher. And there is more than adequate cash line in the company in iSmart you to make this purchase. So that’s what this transaction is all about.
Aditya Bhartia
Understood, sir. Sir, my second question is on the fab manufacturing facility. Just a couple of quarters back, we had started — or we had started speaking about display modules and now we are speaking about complete fab. So what has really changed what kind of capex may be required for this facility? And do we get any kind of soft indications from customers as to what their offtake would be?
Saurabh Gupta
So I think the electronics manufacturing industry in India, Arutte has reached a level of majority as far as the device and product creation is concerned, manufacturing is concerned. And now for that to sustain and grow, definitely a component ecosystem is required. And we had shared with the stakeholders that our first foray is into the non-semiconductor side, wherein we have already launched the display module, which is going to become operational in next six, two to 3/4 and also mechanicals and other modules. Now we feel and we’ve had active discussions with our potential partners that India, industry and Dixon should be looking at a fab for displays to actually create the mode for the industry. But everything has to align with the business and financials. Also, we are awaiting the government guidelines for the ISM2 for this fab. The earlier ISM2 guidelines were 50% capital subsidy from the center on a parry parcel basis, 20% from the state government, certain state government party parcel basis. The number crunching, please be rest assured. I don’t want to share more details as of now, it’s slightly premature. It’s an extremely attractive project with a hugely margin-accretive and a very fast payback period. And we are seeing that this will be globally competitive, a large part of it, it adds value to us through captive consumptions in mobiles, in televisions, NNR notebooks business. And of course, it’s going to be offered to the other players in the market and also it’s going to be globally competitive. So that’s the reason at a conceptual level, we are deeply diving into it and we’re building a team to take it to the next level.
Aditya Bhartia
So that’s very encouraging to hear. Any rough details that you can share about the kind of capex that would be required and the kind of bill of material that we’ll be able to service through it.
Saurabh Gupta
So the capex is to the tune of around $3 million and a display in television is almost 60% mobile is almost 12% to 15%. In a notebook it’s again around 12% to 15% so it varies. But it’s a high EBITDA margin business globally and for us also. Now obviously, it’s dependent on the government scheme rollout. We are awaiting that. We are expecting ISM2 to be rolled-out, but we are internally within Dixon putting in a lot of thought, lot of working in pushing this product.
Aditya Bhartia
That’s great, sir. And just one last bit on this aspect. Is there an obsolescence risk also in a fab facility, pardon my ignorance looking at this part of the equation for the first time?
Atul Lall
Sorry, just come again, Anand.
Saurabh Gupta
No, I think all the future technologies, like the micro, the, the bullet, which also will be part of the —
Atul Lall
It will be ensured that the project sees any technological evolution is going to-be-built into this infrastructure.
Aditya Bhartia
That’s great to hear, sir. Sir, my last question on our foray into PCBA business, which is what we had started thinking of as an isolated vertical as well besides the backward integration that we do for our existing verticals. Any progress that we have seen over there in vertical — in segments like autos and industrials?
Atul Lall
So our teams are in discussions. We are in advanced stages of discussions with a large industrial buyer and that’s the first focus that we have. It’s going to take some time, but I’m fairly confident that we would have a breakthrough there for a Chennai campus
Aditya Bhartia
Thank you. Sure, sir. Thank you so much.
Saurabh Gupta
Thank you. Thanks lot.
Operator
The next question is from the line of from Fidelity. Please go-ahead.
Madhav
Hi, good evening. Thank you so much for your time once again. I just wanted to check that when — I think you had mentioned that we can be 60%, 65% of the outsourced part of the manufacturing of mobile smartphones in India. I’m just thinking from a supply diversification risk like one or two years out, wouldn’t brands at some point think that they need to diversify their risk because even in other sectors like if you look at pharmaceuticals or chemicals, any other sector in India globally, generally they would want to keep two or three vendors at least to kind of hedge the risk. So is that a risk that you think for our volumes two, three years out that they might want to diversify and Tata, etc., probably are in credible vendors as well in the market, which is that’s my first question.
Atul Lall
So your question is very pertinent and that’s the way it should be. Now it’s for us in Dixon to be more efficient. It’s for us to be in Dixon to be absolutely customer obsessed and create value for him. I know there are going to be challenges, but that’s what we build within Dixon to be most subservient, obsessed with customer, deliver to him what he expects, nimbles and new product introductions. I think if we were able to achieve what we are aspiring to, then I think we’ll be able to cover a lot of ground and protect ourself. But the first thing is to have a large share of a market. Yeah.
Madhav
Okay. Okay. And the second question I had was on the — in the display part. Did you say $3 billion for INR25,000 crore CapEx, did I miss or did I miss that?
Saurabh Gupta
So you mad you already tried, but that please understand a large part of that capex as Mr Nal mentioned, will also be subsidized by the government. So we are the policy guidelines under the ISM2, which was — which will come out guidelines for the displays are. So a large part of that capex or should be subsidized by the government. So our share of capex contribution should be lower. But yeah, the overall capex requirement for a display path is around $3 billion.
Madhav
Okay. That’s great. Thank you. Thank you so much.
Operator
Thank you. Thank you. The next question is from the line of Siddharth Pera from Nomura. Please go-ahead.
Siddhartha Bera
Yeah. Thanks for the opportunity, sir. Sir, first again on this display capex over what period do you think this will be spent? And even if you assume, say, a 30% share of ours, the investment do you think can be funded through internal accruals or do you think there can be other funding requirements we may look to sort of close this
Atul Lall
Registration period for setting up this project is around three years. We are awaiting the government guidelines under ISM2 to take this project forward because there is essential piece for execution of this project. And this will entail a requirement of internal accruals again — funding by internal accruals and also support by the stakeholders.
Siddhartha Bera
Got it. Got it. And second, sir, on the mobile side now, if you can just highlight how much Smart 2 volumes we did in the quarter and as we go in the next few years, how much do you think the volume ramp-up can be and same for some of the other bigger customers like me, where are we seeing in the next few years our number in?
Saurabh Gupta
Yeah, I swat you — I don’t have the number right now with me, but broadly out of this 8.3 million number. I think so SMO2 volumes will be somewhere around 1.7 million, 1.8 million. And yeah, so basically, Sidart, we have done a volume of almost 20.5 million. And the last quarter also we hope the order book that we have across Portrola,, and and also the large global brand through Compan. I think so we should be doing another 9 million to 10 million kind of volumes.
Atul Lall
So we should be around INR30 million 30 odd
Saurabh Gupta
By end of this financial year for this financial year,
Siddhartha Bera
Yeah. Got it. And sir, for the next year, what are the numbers we are thinking about right now? Any internal estimates and given that is also sort of ramping-up, so some color there, if you can share?
Atul Lall
So it’s going to take some time to arrive at Vivo numbers because Vivo transaction requires regulatory approvals from the government. It requires approval under press Note 3, which takes some time. So it’s difficult to predict how those numbers are going to come into the company. But otherwise, apart from Vivo, we’ll have a significant growth, the kind of order book that we can see.
Siddhartha Bera
Understood, sir. Lastly, sir, on the capex side, if you can share what are the numbers for this year and given the deep and acquisitions we have closed, what is any initial guess of what is the ballpark number for next year we are looking at?
Saurabh Gupta
Yes. So we have done a capex of almost INR620 odd crores in the first-nine months and we should hopefully close at around INR800 odd crores plus INR50 crore to INR60 crores is the monthly going run-rate right now. And yeah, the next year budgets that are being worked out. I think so I’ll have a better visibility in the next couple of months. But broadly, I can assume a similar number of anywhere between INR600 crores INR700 odd crores. So that should be the run-rate, but yeah, we will have a better visibility in coming months on the budgeted numbers for next year.
Siddhartha Bera
Okay, got it. Thanks, sir. I’ll come back-in the queue. Thank you.
Operator
Thank you. The next question is from the line of Indrajit Agarwal from CLSA. Please go-ahead.
Indrajit Agarwal
Hi, sir. Thank you for the opportunity. I have two questions. First, going back to the display fab. Globally, what kind of ROCs these entities generate, these facilities generate? And does it make sense for us to go for it if there is no government subsidy.
Atul Lall
So government subsidy and support is essential for taking this project forward.
Indrajit Agarwal
What would be the pressure on that? Sorry? And what would be the ROCs broadly without — I mean in global examples if you have done any study on that.
Saurabh Gupta
So if the government support is in-line with what was there in the first ISM and then the ROC is extremely high, is extremely margin negative and the payback period is very, very short, but we are awaiting the government guidelines and that’s the way the project is being conceptualized.
Indrajit Agarwal
Sure. Secondly, sir, on — you mentioned that mass manufacturing for a couple of brands in laptops has already started. Have we recognized any revenue from laptops in this quarter or will it all come in 4Q?
Atul Lall
No, we have started recognizing, but it’s a very small number as of now. We have started supplying to Lenovo and we have already been supplying to ASM, but these are trial productions. The commercial productions in a small way have started, the volume buildup will take some time. The actual commercial production is going to start the trials in February and the commercial production in April for the other larger global brands that’s HP and Asus.
Indrajit Agarwal
And does the delay in import restrictions change your timelines of the revenue that you had forecasted on a five-year horizon or does it still remain intact?
Atul Lall
So we are still maintaining that. And as we shared in the opening remarks, we are very close to signing a JV agreement with one of the largest ODM spares globally in the IT product range and that will give a very significant flip to our revenues in this particular business and also expand our product portfolio.
Indrajit Agarwal
Sure. My last question is on TVs. What kind of volumes or top-line we did in this quarter and was it significantly down Y-o-Y broadly.
Saurabh Gupta
Yeah. So, TV volumes are definitely down. So we did a volume of 3.8 lakhs in this quarter and in the nine months, we have done a volume of 19.4. So there is a degrowth both in nine months and quarter three. So yeah, if you exclude — so we have in our presentation, we have shown that the refriger revenues have contributed INR166 crores out of that INR650 crores. So broadly, if you remove that, the TV revenues for quarter three was around INR460 crores INR70 odd crores
Indrajit Agarwal
Sure. This is helpful. Thank you very much. That’s all from my side.
Operator
Thank you. Thank you. The next question is from the line of Pulkit from Goldman Sachs. Please go-ahead.
Pulkit Patni
Sir, thank you for taking my questions. A couple of them. Sir, first one is on PLI incentive. There’s an article in newspaper a few, I think a couple of weeks back which spoke about some difficulty in receiving these PLI incentives. So could you just talk about, A, since inception, how much is the total incentive that you have booked versus how much is the incentive that you have received thus far? That’s question number-one.
Atul Lall
So the detailed numbers our team Saurab can share with you separately I request. However our incentive in Mubai up to December ’24 has been cleared. Our incentive for telecom for last fiscal has been cleared. For lighting and easy components, we are expecting to receive our PLI for the last fiscal in the current quarter. That’s what the status is. For January to March quarter of mobile is under process. That’s what the status is. The exact number will be able to share with you.
Pulkit Patni
So approximately what would be the receivable on PLIs.
Atul Lall
So PLI, our portion of receivables, which we have booked as an income
Saurabh Gupta
. Yeah, basically to the extent of almost INR200 odd crores, if include all the — all the four PLAs excluding.
Pulkit Patni
And this is like just for the fiscal or this is cumulatively so-far?
Saurabh Gupta
So this is basically the — our share of income which has been booked in the P&L.
Pulkit Patni
Okay. And receivable out of this?
Saurabh Gupta
The receivable basically would be this receivable, of course, would be a slightly bigger number because there is always a kind of a sharing also. So receivable number will be slightly bigger, but yeah, so that number will be almost INR1,000 odd crores. And yeah.
Pulkit Patni
Okay. And my second question is on other expenses. If I look at sequentially our revenue is slightly down, let’s assume it’s even flattish. But we have seen other expenses come down by almost about INR60 odd crore. Just wanted to know were other expenses higher last quarter? Is it under-absorption last quarter because it’s fallen from about INR298 crore to about INR227 crore in this quarter.
Saurabh Gupta
None of the other expenses is around INR155-odd crores. I don’t know where you’re looking at to the last quarter you mean to say?
Pulkit Patni
Yeah, I’m talking about sequentially. Just sequentially our revenue, I’m saying it’s fallen a little bit, but it’s almost flattish. But other expenses sequentially are down quite meaningfully, Saurabh. So I just wanted to understand like is it a quarterly phenomenon? Is it just that last quarter there were start-up costs.
Saurabh Gupta
No, it’s basically a quarterly phenomenon. A lot of our operator wages cost gets booked under this head. So definitely, if you look at quarter two, we had a revenue of INR11,500 crores this year, this time it’s around INR10,400 odd crores. So accordingly, the wages cost, the power cost and so would be the case of other overheads also would be slightly lower. And also there is some exchange fluct exchange income, which is also in booked. So last quarter we had some exchange loss and this quarter we have an exchange income. So that is also kind of positively reflecting, which is — which is having a posit — which is having an impact on the expenses as well. So part of the exchange income is booked under the other income and some part of the exchange income is put under other expenses. It’s netting of the other expenses basically.
Pulkit Patni
Okay. No, this makes sense. Thank you,.
Saurabh Gupta
Thank you.
Operator
Thank you. The next question is from the line of Renu Pugalia from IIFL Securities. Please go-ahead.
Renu Baid Pugalia
Yeah. Hi, good evening, sir. Firstly, I would like to congratulate for the way the business has ramped-up. Pretty impressive. If you see last five years, revenues have probably been almost 10 times, profit would be almost 6x to 7 times. So my bigger question to you is if you look at the diversification that you’ve announced and the existing growth in mobile EMS space, in the next three to five years, both for core portfolio as well as the new diversification, what are the growth contours that you’re looking in terms of size and scale of the business? Obviously, you’ve highlighted you would also look for probable equity funding for growth capital. And how are you investing in people and talent for these new diversification initiatives.
Atul Lall
So I think that in India in electronics manufacturing domain we are sitting on a very, very large opportunity. And the first phase because of the prudent government guidelines and also our team delivering fairly well of devices manufacturing and building large-scale has already happened. The second phase is to make this much more efficient, much more cost-effective, have the factories which are world-class, even more frugal, more automated and robotised. So that the government intervention which has been through PLI, we are able to stand-on our own feet and be most comparative. That’s what partially has been achieved and in future is going to be achieved. Also along with this, the whole endeavor was to build a very large-scale to generate an operating leverage because electronic manufacturing service industry is a low-margin industry and requires a large operating leverage. Then we have always played extremely conservative in our capital allocation and managing the working capital and managing the balance sheet. Now comes a large opportunity, which has to be again aligned with the thinking in the government that the future is going to be the component ecosystem. And that’s what we are foraying into. We have already got into the display modules and we are working on the other parts like mechanicals, the other parts. And we’ve also seen that now is the time, the kind of scale that we are having and also India is having that display fab is the future. So with the multiple businesses, large-scale, foraying into components, foraying into a possibility of a large investment again in component through what I just shared, in certain products to have the design capability and India to — and Dixon to become globally competitive, that’s the future. So I feel the numbers are going to be very, very large. And your question was extremely relevant that requires a talent pool. So we are working on a
Renu Baid Pugalia
Slightly different talent pool compared to what we have inducted over the last five years.
Atul Lall
That’s right. So it has to be of a different order. For our component foray, we’ve already brought in a very senior resource from the industry. We’ve also recruited some talent. They want to be building on much more expat talent. So that’s the way it’s going to be. So I think India and Dixon sits on a large opportunity. What those numbers are going to look like? Yeah, it’s — we haven’t intern numbers, but I think be slightly premature to share it with the stakeholders at this stage. But we are working on a larger picture.
Renu Baid Pugalia
Got it. And just a small bookkeeping for Saurab. If you look at portfolio, which is a part of consumer electronics, while revenue numbers are shared, how does the profitability of the rest business look as in today and now when do we expect it will turn profitable? Because on a blended basis, margins of rev should have been much better than the our television portfolio. So just trying to compare the margin mix and its impact of the business turning profitably.
Saurabh Gupta
The margins are profitable. We are already profitable in the first-six months or nine months, sorry, we have done a volume of almost 0.6 million on the total capacity of 1.2 million. And because of the order book, you’re further expanding our capacity, it’s 100% OEM business where we have 100-odd models across 190 to 235 liters. We are getting into new categories also. So we did a turnover in nine months of almost INR500 odd crores and it delivers to us a margin of around anywhere between 9% to 9.5 odd percent. So it’s delivering very good numbers and the working capital is also pretty much in control. And yeah, the gross blocks are higher, but the margin profile looks very promising and we are now looking to get into other categories as well. So this — within a short period of time, I think so eight months, I think so we have been able to take — acquire some large marquee brands and take a large market-share in the Indian market.
Renu Baid Pugalia
Okay. Got it. Thanks much and best wishes team. Thank you.
Atul Lall
Thank you.
Saurabh Gupta
Thank you.
Renu Baid Pugalia
Thank you.
Operator
Thank you. Thank you. The next question is from the line of Pumika Nair from DAM Capital. Please go-ahead.
Bhoomika Nair
Yeah. Just one couple of questions. One is on the TV segment. If I look at it, the volume decline has been quite severe. So if you can talk about what has been the reason for this volume decline? Is it just purely demand or market-share loss? And if I net of the profitability that just spoke about in terms of refrigerators and the margins also seem to have fallen. So if you can just clarify firstly on that.
Atul Lall
So undoubtedly, this particular category Bumika, the demand has been subdued. And also this year, Diwali was at a different time zone. So that has also had an impact. So it’s a combination of both these things, which has had a significant impact on this business. So when the volumes fall, obviously, there is a loss on the operating leverage side and the margin is impacted. So that’s the state of this business.
Bhoomika Nair
Okay. Okay. So what kind of volumes can we look at for the full-year?
Atul Lall
So we have done
Saurabh Gupta
— around 9 — we have done around a volume of 19 lakhs and I think so we should close at somewhere around 2.4 or 3.4 million or something in.
Bhoomika Nair
Okay. Okay. Fair point. Sir, second is on a clarification on the PLI that you spoke about where INR200 crores kind of a PLI across all our schemes have been accounted. Now is this for the nine months or for the full-year?
Saurabh Gupta
This is for nine months moving on.
Bhoomika Nair
And in this, how much would be only mobile?
Saurabh Gupta
So mobile will be a large part almost to the extent of INR150-odd crores, yeah.
Bhoomika Nair
Okay. Okay. And we said till December ’24, our dues have been figured for this.
Saurabh Gupta
But I think the disbursement is about to happen and the January to March 2024 should hopefully also get concluded in the next one month or so, hopefully in this quarter here.
Bhoomika Nair
Sorry, in December ’23, it has been cleared. So the 4th-quarter of ’24 is yet to be cleared. Is that understanding correct?
Saurabh Gupta
That’s right. That’s right.
Bhoomika Nair
Okay. Okay, understood. Understood. And when you are accounting for the INR200 crores or the INR150 crores of the mobile PLI, that is for the current year volumes that you’re doing, correct? So next year, once we complete the year, then we will give in for the processing and everything and next year we will actually get the money for the same.
Saurabh Gupta
Yeah, that’s the way it works.
Atul Lall
Yeah. Thank you, it works.
Bhoomika Nair
I mean this, as mentioned earlier, there is no Xiaomi related PLI that we have booked.
Saurabh Gupta
Yeah. In October, December, we have not.
Atul Lall
We have taken a view to not give it — not to
Saurabh Gupta
Book it as of now.
Bhoomika Nair
Okay. Understood. Sir, the other thing was on the display fab that you spoke about. Can you give some color on what kind of asset turns, margins and return ratios that our business could have possibly
Atul Lall
So is still in works what we are looking at 8.6 generation technology we are looking at 60,000 substrates a month kind of capacity. And this will be churning out products for the whole range of televisions, mobiles, laptops, tablets, automotive displays. It entails a capex of almost $2.7 billion to $3 billion. It can generate a revenue of almost $1.7 billion to $2 billion. It has a very decent operating margin. Yeah. So I’m not in a position to share more details. Yeah, let it.
Saurabh Gupta
But it will be double-digit. Yeah, it will — it will be double-digit margins, yeah. So
Bhoomika Nair
And similar profile of return ratios that we have in our core business as.
Saurabh Gupta
Absolutely
Atul Lall
That’s that.
Bhoomika Nair
Okay. Great, great. Thanks so much. I’ll come back-in the queue. Thank you so much, sir.
Atul Lall
Thank you.
Operator
The next question is from the line of Ankar from Shiri Investments. Please go-ahead.
Onkar Ghurgardare
So if you look at the FY ’25, it was all about a mobile and mobile and EMS division. So can we safely assume that for ’26 and ’27, this will be the biggest driver for growth for the next two financial year at least.
Saurabh Gupta
So mobile undoubtedly is going to be the largest piece. Please appreciate it has the largest addressable market. Apart from that, we are also focusing a lot on IT product. As we shared with you, we are pursuing a potential JV with one of the largest ODMs. Also, telecom devices is a very high-growth business. Please appreciate this is our JV with Airtel. This is a business and we generated a revenue of INR700 odd crores in ’23, ’24. We want to close at almost INR3,000 crores in the current fiscal and we hope to double it in the next fiscal. Our new capacities have already been created for that. Similarly, refrigerator is already at INR600 odd crores. We are going to generate almost INR800 odd crores in the current fiscal, we are adding our capacity in two phases in the first phase, we’re going to take it up from 1.2 million to 1.5 million and then we finally want to take it up to 2.2 million, adding new products in this particular business. So these are all drivers of growth. And then of course, we are looking at the component area very deeply. The first project of display module is already in works. The factory construction is happening. We hope to start production by Q2 of the next fiscal. And in that we are planning and looking very seriously at expanding that product portfolio. These are all drivers of growth for Dixon. And. So — but obviously mobile is the largest piece
Atul Lall
Okay with so much with the plate being so full, I mean what kind of funds you will require to support that kind of growth? I mean looking for any fund requirement. I guess you had a proposal to raise, but I guess you haven’t applied for it. So just wait, please. Okay.
Operator
Yes, on good. Does that answer?
Onkar Ghurgardare
Thank you. Thanks.
Operator
Thank you. The next question is from the line of Pakat from Ministry of Finance of Oman. Please go-ahead.
Amarnath Bhagat
Yeah, hi. Am I audible?
Atul Lall
Yeah, please.
Amarnath Bhagat
Hello. Yeah. I just wanted to have two questions. Yeah,, from the investment fund. Just two small questions. One, you can see this revenue is growing, but on quarter-on-quarter also on a nine-month basis, why our margin profile is slowly going down and operating margin is also nine months versus came down from 4% to 3.5%, 3.7% of the EBITDA margin also slowly coming down. Anywhere our margin profile is very keen. Any particular reason why this profile is slowly deteriorating?
Saurabh Gupta
Yeah. So basically, it’s on account of the mix. So if you look at large part of our growth is coming from mobiles as a vertical, which is relatively a lower gross margin, lower EBITDA margin business and almost 70% of the revenues are now being contributed by mobile. So that is and that is the reason why the — because of the mix change, the margins at a company-level look lower. But if you look at all the other parameters apart from the margins and absolute growth of revenues and profitability, the ROC expansion, the current assets management, all of them have been very, very positive. That’s true. I’m just trying to understand the strain because basically all — most of your revenue comes from mobile and it seems that the same trends continue. So how we look in that going-forward with this margin trajectory, how it will look like? It will be slowly going down in the way it is happening, overall, the absolute numbers may be growing, but this margin profile will go down. Is it — is it the trend we will look for or you have a plan to change the product mix so that at least to maintain this 4% of margin. Yes. So we are — as we mentioned, we are investing in backward integration. So displays already — we have narrowed down on a partner and we are also looking for investment in other backward integration projects of precision components, mechanicals,, camera modules. So all these backward integration projects are generally are double-digit are margin-accretive. They are mostly double-digit margins. So once we have a — once these are reflecting in the numbers, you will see the margin expansion. So we feel confident that in the next 24 to 36 months, our margins in mobile segment, which is the largest play for us can expand by almost 100 bps on account of this backward integration and the display project will further be margin-accretive. So you should see that margin expansion happening, see that margin expansion happening every year starting H2 of next financial year.
Amarnath Bhagat
Okay. The second part of the question is little bit in queue now.
Operator
We are focusing on Mr Amanat, can you please come back-in the question queue. Yes. Thank you. The next question is from the line of Pandia from ICIC. Please go-ahead.
Keyur Pandya
Thanks for the opportunity and congratulations on consistent performance. A couple of questions. First on the mobile segment, so FY ’26 being the last year of PLI incentives. Post that in that segment, what kind of profitability that you expect in terms of margin? And I agree probably the absolute EBITDA would grow based on the increased volume. But so how do you see a say financial metrics changing in the mobile segment? That is first question.
Saurabh Gupta
Yeah. So, as I mentioned, our investment in backward integration, even after netting of that PLI income that we are booking, we feel confident that margins will expand in the next 24 months in this business, it will — it will start reflecting in the numbers from H2 of next financial year as we get into the display car business as well. So please be rest assured that margins in this category will expand because of this backward integration projects. So I’ve already mentioned that there is a possibility that margin can expand by 100, 120 bps over the next 24 to 36 months in mobile business. So a lot of work being done on the — on the manufacturing excellence side on automation robotics, operating leverage is kicking-in this business on account of higher volumes and also the backward integration. So combination of all these factors, the margin should expand in this category.
Keyur Pandya
Okay. Just one follow-up to this. You have mentioned Q2 FY ’26 as the period for commissioning of this project. Now this being, I mean, critical component and are we being new entrant and which approval cycle, when should we assume say real ramp-up in the volumes, revenue profitability from this segment, display model?
Saurabh Gupta
So we feel that this should come in by ’26, ’27. See, this is a complex product. It requires approval from the customer side, it has to be aligned at the POC stage for every model, every SKU, essentially. So ’26, ’27 should start kicking-in.
Keyur Pandya
And you see any period in-between before sunset of the PLI and say increased contribution from display module that may be a short-term period but with just impacts up profitability or you are factoring that in and saying that there won’t be such a drop
Saurabh Gupta
No, it’s not fair to look at it from that quarter-to-quarter angle, please.
Keyur Pandya
Fair enough. Fair enough. Just second and last question on the laptop side, so with — I mean government support or I would say some resistance from the brands on the import restrictions. You mentioned Five-Year timeline more or less remains same, but over next two years, what kind of ramp-up you see the number we have quoted in earlier con-calls or TV interviews, any change from those numbers, so FY ’26 or ’27, what should we expect from laptop segment?
Atul Lall
So we still.
Saurabh Gupta
So we maintain those numbers pure and hopefully this potential JV that we are targeting with a large global ODM, the numbers has the potential to increase from there. But yeah, one has to wait-and-watch, but yeah, we at least stick with those numbers that we had added earlier.
Keyur Pandya
So that would be just to — I mean there is lot of conclusion to just the next year or next to next year any ballpark number.
Saurabh Gupta
Yeah, so next year, I think so, which is 25 26 financial year, I think so we should be somewhere, if not more, we should be somewhere at least around INR2.5 crores to INR3,000 odd crores. T
Operator
Hank you. The next question is from the line of Achal Lohade from Nuvama Institutional Equities. Please go-ahead.
Achal Lohade
Good evening, sir. Thank you for the opportunity. Sir, first question is just on the PLI, just a clarification. There was some media article about, you know, companies which have exited the target are also entitled for the unclaimed or unutilized PLI quota. If you could help us giving some clarity there, you know, what kind of quantum if it was to be approved, what additional PLI we could be entitled for
Atul Lall
There is a provision in the mobile PLI of overflow and that’s what we are pursuing in-line with. And yeah, so we are pursuing with the government for that particular reimbursement. So that is it.
Achal Lohade
Any quantum you could indicate or
Atul Lall
Quantum and all you will definitely discuss this all?
Achal Lohade
Sure, sure. The second question I had, you know, with respect to, if you could help us with the revenue and EBITDA PAT for the quarter because we see the minority interest has jumped quite a bit during the quarter. I presume that is partly driven by this particular entity
Atul Lall
Sure.
Saurabh Gupta
So we have mentioned that in our investor update as well. So in the quarter, we did a revenues of almost INR1,900 odd crores for. Out of that INR8,900 crore mobile revenues, yeah 8,20, yeah. So the revenues from was around INR1,800 odd crores.
Operator
Thank you. The next question is from the line of Niransh Jain from VNP Paribas. Please go-ahead.
Nirransh Jain
Yeah, hi, sir. Thank you for the opportunity. Sir, first question is on the Vivo JV. I mean, I wanted to check how much is the current outsourcing percentage right now for the Vivo India considering they have their own manufacturing facility and the press release mentioned that only part of the outsourced orders would be translated to this JV. So any ballpark figure that you can share as in what is the current outsourcing percentage? And what can Dixon expect of in this JV like the volumes for next two years?
Atul Lall
As per the term sheet signed with, 67% of Vivo sales in India would be manufactured in this JV. Does that answer your question, please?
Nirransh Jain
Yeah, yeah, great. Thank you, sir. That was very helpful. And so this JV is expected to ramp-up from 2H FY ’26, is that right?
Saurabh Gupta
Yeah, hopefully. So basically, this JV would require an approval under the Press Node 3 as a new JV entity with the shareholding in which of it also hold 49%. So as and when that approval comes in, the JV would get operationalized and then the manufacturing should start. Yeah. So broadly you can take around six to seven months from here onwards?
Nirransh Jain
Sure, sir. And sir, just some bookkeeping question on the volume. So is it also possible to share the Samsung own volume for this quarter and the home appliances, how much were the volumes were the semi-automatic and fully automatic machines?
Saurabh Gupta
And the Samsung volume for this quarter was around 17 lakhs 1.7 million and the semi-automatic washing machine volume for the quarter was around 3.6 lakhs and fully automatic was 0.8 lakhs
Operator
Thank you. The next question is from the line of Natasha Jain from PhillipCapital. Please go-ahead.
Natasha Jain
Thank you for the opportunity. Sir, firstly, congratulations on the brilliant scale-up of your portfolio of brands and within the stated timeline. I have two questions. One is, until Diwali, there was slight share in the market, but post that we’ve seen slowdown in all the white good categories, barring room air-conditioner, now you’re not there in RAC definitely. But on the other side of the white good category, sir, what are you hearing from your customers in terms of the near to medium-term demand? How is the market shaping up?
Atul Lall
And so that’s market is still slightly subdued. There has been some positivity in the current month as compared to the last quarter because last quarter was post-Diwali but still the buyncy that will excite us, is it still awaited?
Natasha Jain
Understood, sir. And sir, my second question is a couple of weeks rather a month ago, we dread on the secondary sources that Apple is now looking into diversifying its supplier base for component assembly, especially on the non-iphone portfolio. So Dixon has always maintained the stance that we want to become leaders in the non-Apple category or the non-Apple ecosystem. Firstly, are we still maintaining that stance? If not, are we in talks with Apple or any of their partners for airports or all the other non-iphone categories?
Atul Lall
No,, I’m sorry, we have never said that we are going to be leaders in the non the cate that you are talking about, what we had said was that we have pursued and we have been fortunate to build a large portfolio in the Android category. So that’s all what I can say. Any other thing it will not be prudent for me to comment on, please. Please appreciate
Natasha Jain
Yeah. All right. Thank you so much, sir, and all the best.
Saurabh Gupta
Thank you.
Atul Lall
Thank you. Thank you,. Thank you.
Operator
The next question is from the line of Deepak Krishnan from Kotak Institutional Equities. Please go-ahead.
Deepak Krishnan
Hi, sir, am I audible?
Atul Lall
Yeah,
Deepak Krishnan
Just wanted to check on follow-up from Pulkit’s question. You indicated close to INR1,000 crores of receivables while you’ve indicate for PLI, but you’ve indicated that you’ve got money till December of last year. Just wanted to double-check if this number correct, the INR1,000 crore number that you’ve indicated?
Saurabh Gupta
That’s right. So that number is correct.
Atul Lall
But this INR1,000 crore is also to be passed on to the customer and the cash is the customer only when we receive the money.
Saurabh Gupta
So there is no working cash. Employment coming from that.
Deepak Krishnan
Okay. Okay. So the net impact would be just say, 33%, 40% for us.
Atul Lall
INR200 odd crores.
Saurabh Gupta
That INR200 odd crores that you mentioned is our share basically.
Atul Lall
That’s the number.
Deepak Krishnan
Sure, sir. Maybe just wanted to sort of understand, I think you’ve sort of given good insight into the display, the cost, the asset turns, all of it. But when you’re sort of looking at doing this, how are we looking at outside the PLI period? Assume we get 70%, 75% PLI incentives, you set it up for the first five, seven years that works. But how do you look at this business because the real risk is essentially generating ROCE even after the incentives go out. So just wanted to sort of understand your viewpoint over there.
Saurabh Gupta
No. So this is not an operational PLI. This is a capex subsidiary.
Deepak Krishnan
Yeah, so yes, yes, it’s similar to the facility, all of that, we get that 70% CapEx subsidy comes through. That’s for the first whatever 60,000 substrates that you indicated. But what happens after that? How do you look at incremental investments beyond the PLI period and all this year?
Atul Lall
No, no, it’s not a PLI period or anything. Cost of comprises significantly and your payback is amazingly fast. And in any case, you’re producing a product, you’re producing at a cost which is produced anyway, anywhere globally. So that’s the math. So it’s not dependent on PLI, right. It is dependent on the government’s capex support.
Deepak Krishnan
Yes, sir. Sorry. I’ll probably take it offline with Saurab, because I understand the 3 billion, you will get 70% subsidiary. But say you go for next round of capex, how do you sort of touch that? That was my question, but if not, I’ll take it offline with all of us. Yeah.
Operator
Thank you. The next question is from the line of Srinadi Karlekar from HSBC. Please go-ahead.
Shrinidhi Karlekar
Yeah, hi. Thank you for the opportunity. Sir, would it be possible to comment on the telecom business profitability for the current year and how is it likely to improve as you aim to double that business? And
Saurabh Gupta
Broadly the margins are similarly or slightly better than what we do in the mobile business, which around 3.5% to 4% kind of an EBITDA margin business. And the revenues we mentioned that we did almost INR1,000 odd crores. We have a strong order book. So that INR1,000 crore run-rate should continue. In fact, it should get better in the upcoming quarter. So you can broadly assume a 3%, 3.5% to 4% kind of EBITDA margin business
Shrinidhi Karlekar
Second, sir, you alluded to the APO volume being around INR7 million to 8 million next year. These are just APO volume or these include plus.
Atul Lall
So this is basically realmin.
Shrinidhi Karlekar
Right. Okay. And sir, last one, if I may. So would it be possible to tell us the broad range of investment that you would be making to acquire 51% stake in the Vivo manufacturing JV.
Atul Lall
If you don’t mind, slightly —
Saurabh Gupta
As of confidential at an appropriate point of time, we will — we will definitely disclose that.
Shrinidhi Karlekar
Fair enough. Thank you for answering my question and all the very best
Operator
Thank you. Thank you. Ladies and gentlemen, that was the last question for today’s conference call. I now hand the conference over to Ms Bhoomika Nayer for the closing comments.
Bhoomika Nair
Yeah. I would just like to thank the management for giving us an opportunity to host the call and all the participants. And thank you very much, sir, for answering all the queries. Thank you very much, sir.
Atul Lall
Thank you. Thank you, Mika, and thanks all the participants. Really appreciate it for your support. Thank you so much.
Saurabh Gupta
Thank you, everybody. Thank you.
Operator
On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you