Redington share price slips over 5% on weak Q1 earnings

Shares of Redington Ltd slipped 5.95 percent to Rs 172.30 at 9:50 am on August 2, after company’s June quarter net profit declined year-on-year.

Technology solutions provider Redington Ltd reported a 21.2 percent year-on-year (YoY) decline in net profit at Rs 248.8 crore for Q1FY24 as against Rs 315.8 crore reported in corresponding period last year.

The Chennai-based company, which distributes IT products of global giants like Apple and Dell Technologies’ total revenue stood at Rs 21,187.2 crore during the period under review, up 26.1 percent YoY. In the corresponding quarter last year, Redington posted total revenue of Rs 16,803.1 crore, the company said in a regulatory filing.

Revenue from its rest of the world unit, which makes up more than half of its topline and includes the Middle East, Turkey and Africa, dropped around 5 percent from the previous quarter even as it jumped 29 percent from a year earlier.

The earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 9.2 percent to Rs 419.2 crore in the first quarter of this fiscal over Rs 461.8 crore in the corresponding period in the previous fiscal.

EBITDA margin came in at 2 percent in the reporting quarter as compared to 3 percent in the corresponding period in the previous year.

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