NewsEarningsRedington Limited Reports Record Q2 Performance with 17% Revenue Growth to INR 29,118 CroresRedington Limited Reports Record Q2 Performance with 17% Revenue Growth to INR 29,118 Crores
Redington Limited achieved its best-ever quarterly performance in Q2, with revenue reaching INR 29,118 crores, a 17% year-on-year increase. The company reported a quarterly profit of INR 388 crores, with Group PAT at 1.33%. Strong growth was observed across multiple business segments and geographies, with India and UAE leading at 23% growth each. The Software Solutions Group showed impressive 48% growth, contributing 16% to the top line. Despite challenges in the Arena subsidiary, the company maintained efficient working capital management and controlled opex growth.
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Redington Limited , a leading IT and mobility products distributor, has reported its best-ever quarterly performance for Q2, showcasing robust growth across multiple business segments and geographies.
Financial Highlights
- Revenue reached INR 29,118 crores, marking a 17% year-on-year growth
- Quarterly profit stood at INR 388 crores
- Group PAT (Profit After Tax) at 1.33%, excluding Arena subsidiary at 1.57%
- EBITDA and PAT grew faster than revenues
Geographic Performance
| Region | Growth |
|---|---|
| India | 23% |
| UAE | 23% |
| Saudi Arabia | 10% |
| GCCL | 22% |
| Africa | 8% |
Business Segment Performance
| Segment | Growth | Revenue Contribution |
|---|---|---|
| Mobility | 18% | 35% |
| ESG (Enterprise & Services Group) | 11% | 32% |
| Technology Solutions | 9% | 16% |
| Software Solutions Group (SSG) | 48% | 16% |
Key Operational Highlights
- Strong execution in the direct-to-retail segment in India
- PC business growth observed in both India and Middle East markets
- Signs of PC refresh cycle and increased AI PC penetration, especially in the commercial space
- Higher enterprise demand driving Technology Solutions growth
- Efficient working capital management, with overall working capital days reduced to 31
- Controlled opex growth at 9%, lower than revenue growth
Software Solutions Group (SSG) Performance
The newly formed SSG, consisting of cloud hyperscaler business, cybersecurity, application software, and professional services, showed impressive growth:
- 48% year-on-year growth
- Contributing 16% to the top line
- Delivered higher-than-average PAT compared to the group
Arena Subsidiary Update
- Arena subsidiary faced challenges, reporting a loss of INR 37 crores
- Company divested Connect Vodafone contract to reduce Turkish lira exposure
Industry Recognition
Redington was awarded the title of number 1 IT distributor in India by VAR India for the third consecutive year, with an increased lead over competitors.
Management Commentary
V.S. Hariharan, Managing Director and Group Chief Executive Officer, stated, "This has been our best quarter so far from a revenue perspective. With a quarterly profit of INR 388 crores, the profitability was the best Q2 ever. It is a continuing story of profitable growth with growth coming back strongly across all business segments and many geographies."
Future Outlook
The company remains optimistic about its growth prospects, particularly in the Software Solutions Group. Management indicated plans to invest in technical presales teams, Redington Academy for training certified professionals, and ecosystem development to bring managed print service providers and ISVs together with products for complete customer solutions.
Redington's strong performance and strategic focus on high-growth areas like cloud, cybersecurity, and AI-driven solutions position it well for continued success in the evolving IT distribution landscape.
Historical Stock Returns for Redington
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.58% | +3.10% | +10.23% | +5.79% | +55.00% | +357.20% |
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