REDINGTON (INDIA) LIMITED Research Tear Sheet Q3 FY22

Redington (India) Limited is a supply chain solution provider. It deals with information technology (IT) products, mobile handsets and accessories. The company was incorporated on 2 May 1961. The company is headquartered in Tamil Nadu. It is operating in more than 37 markets encompassing India, Middle East, Turkey, Africa and South Asian regions including Singapore. It has partnered 245+ international companies to bring their products to consumers. Redington has 34000+ channel partners. The values of this company include adaptability, collaboration, know-how, objectivity, simplicity, trust and transparency.

Key Financial Highlights

₹. In Crores	Q3-2021	Q3-2020
Total income	7,098.23	7,722.58
Total expenses	6,912.31	7,610.90
Profit for the Quarter	137.45	33.38
Diluted Share	1.76	0.43

Revenue# degrew by 2% while EBITDA grew by 22% and PAT grew by 103% on a Global basis.

Revenue# degrew by 7%, EBITDA grew by 10% and PAT grew by 261% in India.

Revenue# grew by 2%, EBITDA grew by 30% and PAT grew by 62% in the overseas region.

Revenue# grew by 9%, while EBITDA grew by 38% and PAT grew by 104% for 9M FY22.

Working Capital days On a Global basis is 12 days in Q3 2022.

On Global basis Return on Capital Employed is 93.6% and Return on Equity is 29.7% for Q3 2022.

Cashflow

Cash flow is negative for the quarterat Rs. 445 crs due to 7 days of working capital in the previous quarter. For 9MFY22, the cash flow from operation was Rs. 909 crores. Free cash flow from operations, after considering Rs. 460 crores of dividend payout is a positive Rs. 296 crores.

Return on Equity

The company earned consolidated Return on Equity of 29.7%. India contributes 31.2% and overseas at 28.9%. Redington has achieved debt to equity ratio of 0.1x, the net debt equity of -0.5x.

Conference Call Highlights:

Management Updates:

EBITDA at Rs 544 crs for this quarter irrespective of change in accounting standard.

India revenues decreased by 7% to Rs. 7157 crs.

The consolidated Working capital, for the quarter closed at 12 days. In India it has come down from 11 days to 8 days and for overseas it has increased from 12 days to 15 days.

Business Updates:                        

Redington India Limited subsidiary Arena has completed acquisition of 100% shares of Brightstar.