© Simply 3 Capital
© Simply 3 Capital
Redington Limited, an integrated technology solutions provider and a Fortune 500 company, enables businesses in their digital transformation journeys by addressing technology friction – the gap between innovation and adoption. With presence across 38 markets through 60 subsidiary offices, over 300+ brand associations, and 43,000 channel partners, Redington enables seamless and end-to-end distribution for all categories of IT/ITeS, Telecom, Lifestyle, and Solar products in India, Singapore, South
About Redington-
Redington Limited, an integrated technology solutions provider and a Fortune 500 company, enables businesses in their digital transformation journeys by addressing technology friction – the gap between innovation and adoption. With presence across 38 markets through 60 subsidiary offices, over 300+ brand associations, and 43,000 channel partners, Redington enables seamless and end-to-end distribution for all categories of IT/ITeS, Telecom, Lifestyle, and Solar products in India, Singapore, South Asia, Middle-East, Africa and Turkey.
Recently Declared Results-
Redington (India) Ltd, the distribution and supply chain solutions provider, has reported a 10 per cent decline in consolidated net profit for the fourth quarter ended March 31, 2023 to ₹310 crore against ₹348 crore for the same quarter last year as other expenses increased to ₹420 crore (₹332 crore). Revenue for the quarter increased 26 per cent to ₹21,848 crore (₹17,302 crore).
Net profit for the full year rose 9 per cent to ₹1,439 crore (₹1,315 crore) on a 27 per cent increase in revenue to ₹79,376 crore (₹62,544 crore).
Revenue for the fiscal from Singapore, India and South Asia (SISA) increased by 26 per cent to ₹36,932 crore (₹29,281 crore) and from Rest of World increased by 27 per cent to ₹42,453 crore (₹33,363 crore).
Redington has fixed 07 July 2023 as record date for dividend of Rs 7.2 per share for FY 22-23.
Making sense of Ramesh Natarajan, chief executive officer of Redington Comments on recently concluded results-
We have become a technology aggregator in the last many years but the journey moving forward is being the technology solutions provider,” Natarajan said, adding that the firm is creating a factory of proof of concept and centre of excellence so that partners can test, pilot their applications and technologies before they go ahead and start selling them out.
He is expecting Redington to grow at 15-17% in FY24, less than 27% revenue growth in FY23. The reasons which Natarajan attributed to slow growth are consumers going cautious in terms of buying devices, weak global economic scenario, and limited funding with the startups.
“In all my understanding, the growth can be compromised. You might probably see a growth that would probably come down but it is imminent, this year as well as the next. And by the time we expect the global economy to get far better, that will put us back on track,” Natarajan said.
With regard to working capital days, Redington is trying to control it between 35 and 30 days. For Redington, the working capital day cycle is a key metric as it shows the number of days it takes for the company to convert its working capital into revenue. For FY23, the company’s working capital days stood at 36 days, whereas for January-March it was at 32 days.
“There are challenges on collections, on inventories getting extended just because we are coming out of a period where you had demand chasing the supply and suddenly in about four or five months time we’ve got supply chasing the demand,” Natarajan said.
“Our growth in FY23, has been driven by reinventing ourselves across many dimensions. We made significant investments in improving our digital capabilities, building platforms and creating processes to enable faster time to market and providing choice to customers to engage with us in ways they prefer. While technology distribution has been our core value proposition, we are focused on building competencies and capabilities to provide managed services for private and public Cloud, Security and audits. Technology industry globally has been going through a phase of reduced demand and our initiatives ensure we provide more value to serve our customers better thereby gaining share and accelerate our growth momentum. Our partners play a most crucial role and we remain committed to empower them and help them in their business growth.” said Mr. Rajiv Srivastava, Managing Director, Redington Ltd.
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