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Dixon Technologies (India) reported an 86% growth in third-quarter profit on Wednesday, benefiting from growing demand for technology gadgets and rapid expansion of electronics manufacturing in the country.

The $155-billion Indian electronics industry has gained from technology giants diversifying their supply chain from China, while the local government's production-linked incentives have further boosted production.

Dixon's consolidated profit climbed to 964.4 million rupees ($11.62 million) for the three months ended Dec. 31 from 519.1 million rupees a year earlier, according to an exchange filing.

Revenue from operations doubled to 48.18 billion rupees as higher demand for smartphones in the world's fastest-growing major economy boosted its mobile and electronic manufacturing services business.

Driven by its mobile business, revenue for the financial year ending March 2024 would jump nearly 50% to roughly 180 billion rupees, Dixon's Managing Director Atul Lall told Reuters in an interview earlier this month.

Dixon, which started making colour televisions in India in 1994, now has roughly two dozen manufacturing plants in the country and serves customers, ranging from South Korea's Samsung to German washing machine brand Bosch.

Shares of Dixon, which soared 68% in 2023, closed more than 2% higher on Wednesday ahead of its results.

($1 = 83.0190 Indian rupees)