NOIDA, U.P., INDIA -- Dixon Technologies reported sales in the December quarter fell 0.7% year-over-year, primarily on lower demand for mobile phones from OEM customers.

Sales at the EMS/ODM were Rs6.78 billion ($105.2 million) for the period ended Dec. 31.

Operating margin was down 40 basis points to 3.8%. The net income was 12.4 ($19.3 million)

The EMS/ODM showed strength in lighting, with production increasing on LED bulbs, offset by a decline in ODM work in that sector. Home appliance sales were up and management expects margin to increase by at least 200 basis points in fiscal 2019. Mobile phone sales were down 28% from a year ago but remains Dixon's largest segment.

A new factory at Tirupati for building CCTVs and digital video recorders should contribute to 5 to 7% of revenue in fiscal 2019, the company said.