Q1 2025 Redington Ltd Earnings Call Transcript
Key Points
- Redington Ltd (BOM:532805) reported a 13% year-on-year growth in profit after tax, achieving a PAT percentage of 1.42.
- The company recorded its highest Q1 revenue at INR19,032 crores, with revenues growing 1% year-on-year excluding its Turkey subsidiary, Arena.
- The cloud business unit showed stellar performance with a 35% top-line growth, driven by success in the hyperscaler business and subscription software.
- The Endpoint Solutions Group contributed to growth with an 11% revenue increase, driven by commercial and consumer PCs.
- The company has rebuilt its corporate strategy around four pillars, focusing on sustainable profitable core, accelerating business growth, route-to-market transformation, and leveraging the power of One Redington.
- Redington Ltd (BOM:532805) faced challenges in its Turkey subsidiary, Arena, due to high inflation and interest rates, resulting in a loss for the quarter.
- The notebook PC market in Turkey declined by almost 30%, significantly impacting the company's performance in that region.
- Gross margins saw a drop across businesses, partly due to higher inventory provisions and market softness in key regions like KSA.
- There were delays in India due to elections and capital decision delays, affecting the Technology Solutions Group's growth in the region.
- The company experienced headwinds in the Middle East and Africa due to longer festive holidays and government project delays in Saudi Arabia.
Ladies and gentlemen, good day and welcome to the Redington Limited Q1 FY25 earnings conference call.
This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to V.S. Hariharan, Chief Executive Officer of Redington Limited. Thank you and over to you, sir.
A very good morning, everyone. This is Hariharan. I'm really happy to share with you our Q1 '25 results. I will first focus on our performance, excluding Turkey, our subsidiary in Turkey -- Arena subsidiary in Turkey, to provide enough color on our performance in India, South Asia and Middle East, Africa. I will talk separately regarding Arena as well.
It has been a
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