Q2 2025 Redington Ltd Earnings Call Transcript
Key Points
- Redington Ltd (BOM:532805) achieved its highest quarterly revenue at INR24,896 crores, with a 17% quarter-on-quarter and 12% year-on-year growth.
- The cloud business unit was a standout performer with a 54% year-on-year top-line growth, driven by success in hyper-scale and subscription software.
- India and UAE, which constitute over 60% of the business, showed stellar growth rates of 25% and 24% year-on-year, respectively.
- The company achieved a best-in-class working capital of 25 days, aided by lower interest rates in some geographies.
- Redington Ltd (BOM:532805) was recognized as the number one IT distributor in India for 2023-2024 by VARINDIA and ranked 31st among the top 250 companies in India for sustainability by Business World.
- Profit after tax grew only 10% quarter-on-quarter and 2% year-on-year, lagging behind revenue growth due to lower margins in the mobility business and large deals.
- Challenges in Turkey's Arena unit persisted due to high inflation and interest rates, leading to a market demand decline of 15% to 20% in the IT business.
- Gross margins have been under pressure due to a mix shift towards lower-margin mobility business and large deals with lower margins.
- Inventory provisions in Saudi Arabia and other regions impacted gross margins, with a notable provision of 12 basis points this quarter.
- The company's PAT margin excluding Arena was 1.34%, but overall margins were affected by the ongoing issues in Turkey and inventory provisions.
Ladies and gentlemen, good day and welcome to Redington Limited Q2 FY25 earnings conference call.
This conference call may contain overlooking statements about the company which are based on beliefs, opinions and expectations of the company. As on date of this call, these statements are not the guarantees of future performance and annual risk and earth eternities that are difficult to predict.
(Operator Instructions)
I now hand the conference over to Mr. Hariharan, Group CEO. Thank you and over to you, sir.
Good morning everyone. Seasons greetings, warm wishes and a happy Diwali to all of you.
I'm happy to share with you our Q2 '25 results.
This has been the highest quarter revenue recorded Redington at INR24,896 crores, and our revenues grew at 17% quarter on quarter and 12% year on year.
It has been a continuing story of profitable growth/ with growth coming back strongly. Similar to last quarter. I will first focus on our performance excluding arena the unit
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
