{"id":155843,"date":"2023-11-07T06:00:23","date_gmt":"2023-11-07T11:00:23","guid":{"rendered":"https:\/\/44.250.171.167\/?p=155843"},"modified":"2023-11-07T06:09:30","modified_gmt":"2023-11-07T11:09:30","slug":"redington-india-limited-q2-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/redington-india-limited-q2-fy24-earnings-conference-call-insights\/","title":{"rendered":"Redington Limited Q2 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Redington Limited (REDINGTON) Q2 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Business Outlook<\/strong>\n<ul>\n<li>Most regions continue to show growth opportunities.<\/li>\n<li>Cloud and technical solutions offer good growth potential.<\/li>\n<li>Mobility momentum remains strong with new product launches.<\/li>\n<li>Fine-tuning investments for best ROI.<\/li>\n<li>Digitalization, B2B platform and emerging solutions are key focus areas.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Q2 Financial Performance<\/strong>\n<ul>\n<li>Record high revenue and gross margin for a quarter.<\/li>\n<li>Q-o-Q revenue up 5%, gross margin up 10%, PAT up 22%.<\/li>\n<li>ROE at 17.4%, ROCE at 21.6%.<\/li>\n<li>Y-o-Y revenue up 17%, gross margin up 12%.<\/li>\n<li>Y-o-Y PAT declined 22% due to investments.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Working Capital Management<\/strong>\n<ul>\n<li>Focusing on driving profitable growth and efficient capital management.<\/li>\n<li>Prudently managed its working capital in 2Q, reducing days to 35-40, although this may not be a consistent trend due to seasonal influences.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Demand Environment &amp; Outlook<\/strong>\n<ul>\n<li>Demand continues to be strong in India, UAE, Saudi Arabia across categories like technical solutions, cloud, and mobility.<\/li>\n<li>Endpoint solutions seeing muted demand due to lower enterprise PC purchases globally.<\/li>\n<li>New mobility products seeing good acceptance and demand, fulfilling whatever limited supply received.<\/li>\n<li>Does not expect significant demand slowdown despite potential over ordering during COVID.<\/li>\n<li>Enterprise demand continues to be strong driven by cloud transformation.<\/li>\n<li>Consumer demand expected to rebound with reach of computing to rural areas.<\/li>\n<li>New growth areas like wearables, gaming to drive consumer demand.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Margins and Costs<\/strong>\n<ul>\n<li>Expect EBITDA margins of 2.4-2.5% range through focus on profitable growth and mix management.<\/li>\n<li>Factoring costs at 86 crores this quarter, predominantly in Turkey due to limited financing options.<\/li>\n<li>Aim to maintain opex as a percent of revenues through cost control measures.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Business Strategy<\/strong>\n<ul>\n<li>Key focus areas are cloud, technical solutions, emerging solutions like gaming and wearables.<\/li>\n<li>Digitalization investments will continue but will be fine-tuned.<\/li>\n<li>Android mobility solutions seen as a growth avenue.<\/li>\n<li>Initially focusing on getting best returns from current businesses and investments.<\/li>\n<li>Priority on stabilizing stressed geographies like Africa, overseas<\/li>\n<li>After stabilizing core, will look at driving new growth adjacencies leveraging distribution capabilities.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Impact of Market Changes<\/strong>\n<ul>\n<li>Some evolution happening like direct to retail but no major structural impact.<\/li>\n<li>Overall pie for distributors not seen shrinking despite consolidation.<\/li>\n<li>No direct impact yet from geopolitical risks, but monitoring Israel-Gaza situation for indirect effects.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Turkey Business<\/strong>\n<ul>\n<li>Seeing good growth similar to other regions operationally.<\/li>\n<li>Profitability percentages lower than other regions due to economic challenges.<\/li>\n<li>Continues to be a worry; risk management critical.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Investment Streamlining<\/strong>\n<ul>\n<li>Slowing investment pace in some areas like digital platforms to ensure adequate returns.<\/li>\n<li>Categorizing investments into fundamental &#8220;need to have&#8221; vs discretionary &#8220;nice to have&#8221;.<\/li>\n<li>Investments mainly focused on India business and some global functions.<\/li>\n<\/ul>\n<\/li>\n<li><strong>ProConnect Business Performance<\/strong>\n<ul>\n<li>Performance was mediocre this quarter with flat growth and neutral profitability.<\/li>\n<li>Outlook for next 2 quarters looks positive.<\/li>\n<li>Expected to return to high growth and profitability model.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Africa and RoW Business Performance<\/strong>\n<ul>\n<li>Africa business is around $1 billion revenue on an annualized basis.<\/li>\n<li>Key countries are Nigeria, Kenya, and South Africa in that order.<\/li>\n<li>Gross margins improved but EBITDA declined in RoW regions.<\/li>\n<li>Decline mainly due to high factoring costs, especially in Turkey where costs are 50-55% currently. Forex losses and increased provisions also contributed to the decline.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Redington Limited (REDINGTON) Q2 FY24 Earnings Concall Business Outlook Most regions continue to show growth opportunities. Cloud and technical solutions offer good growth potential. Mobility momentum remains strong with new product launches. Fine-tuning investments for best ROI. Digitalization, B2B platform and emerging solutions are key focus areas. Q2 Financial Performance Record high [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,8],"tags":[10169,8205,8532],"class_list":["post-155843","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-technology-stocks","tag-earnings","tag-hardware","tag-technology"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":172179,"url":"https:\/\/alphastreet.com\/india\/redington-q2-fy26-earnings-results\/","url_meta":{"origin":155843,"position":0},"title":"Redington Q2 FY26 Earnings Results","author":"Chirag Gupta","date":"November 6, 2025","format":false,"excerpt":"Established in the year 1993, Redington Limited is a leading distributor of IT and mobility products and a provider of supply chain management solutions and support services in India, the Middle East, Turkey and Africa. \u00a0 Q2 FY26 Earnings Results: Consolidated Revenue from Operations: \u20b929,076 crore, up 16.8% YoY and\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Redington Q2 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Redington-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Redington-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Redington-Q2-FY26-Earnings-Results.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Redington-Q2-FY26-Earnings-Results.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Redington-Q2-FY26-Earnings-Results.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Redington-Q2-FY26-Earnings-Results.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":127247,"url":"https:\/\/alphastreet.com\/india\/redington-india-limited-q3-fy22-earnings-conference-call-insights\/","url_meta":{"origin":155843,"position":1},"title":"Redington (India) Limited Q3 FY22 Earnings Conference Call Insights","author":"Praveen","date":"February 10, 2022","format":false,"excerpt":"https:\/\/www.youtube.com\/watch?v=PLgAOaISr7E Key highlights from Redington (India) Limited (REDINGTON) Q3 FY22 Earnings Concall Management Update: REDINGTON reported a PAT of INR388 crores, a 103% growth YonY, which is an all-time high PAT the company has ever had. 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Presenting below are its Q1 FY26 earnings results. \u00a0 Q1 FY26 Earnings Results Total Income:\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Redington Q1 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/1-8.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/1-8.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/1-8.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/1-8.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/1-8.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/1-8.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":179660,"url":"https:\/\/alphastreet.com\/india\/redington-reports-record-quarterly-revenue-and-profit-amid-strong-sisa-growth\/","url_meta":{"origin":155843,"position":3},"title":"Redington Reports Record Quarterly Revenue and Profit Amid Strong SISA Growth","author":"Staff Correspondent","date":"February 5, 2026","format":false,"excerpt":"Redington Limited achieved its highest-ever quarterly financial results in Q3FY26, supported by 24% revenue growth in the SISA region. 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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. 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