Redington drops 6% on decline in Q4 net profit, weak margin

Shares of Redington plunged over 6 percent in early trade on May 17 as investors shun the stock, a day after the company reported a decline in its fourth quarter net profit.

Net profit for the January-March period declined 10.9 percent year-on year to Rs 310.1 crore from Rs 348 crore in the same quarter last year. The net profit was largely dragged down by weakness in the Rest of the World market.

EBITDA margin also contracted to 2.5 percent in Q4 from 2.8 percent in the year ago period. The topline, however, rose 26.3 percent year-on-year to Rs 21,848.6 crore.

At 10.08 am, shares of Redington were trading 2,40 percent at Rs 171.10 on the National Stock Exchange. The stock had slumped to an intraday low of Rs 164.30 in the first half an hour of trade on May 17.

Around 29 lakh shares changed hands on the exchanges so far, nearly double the one-month daily traded average of 15 lakh shares.

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At a stark contrast to the quarterly earnings, the company registered its highest ever full year revenue and net profit during FY23.

For the full year FY23, the firm reported a revenue of Rs 79,519 crore reflecting growth of 27 percent on year while net profit increased 9 percent to Rs 1,393 crore.

The stock has also been a multibagger, rewarding investors with returns close to 300 percent in the past three-year period.

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