Redington Ltd
BSE:532805
Redington Ltd
Redington Ltd., originally established in 1993, has evolved into one of India’s premier end-to-end supply chain solutions providers in the technology space. Its journey begins with the simple yet profound objective of bridging the digital divide by facilitating technology access across diverse geographies. Operating in over 30 markets, Redington has woven a vast network that incorporates over 235 international brands. Through its intricate distribution channels, the company deftly intertwines logistics, financial services, and support services, crafting a robust infrastructure that ensures the seamless delivery of IT and mobility products. By embracing innovation and leveraging partnerships, Redington effectively dispatches technology products ranging from the most sophisticated software to essential hardware, catering to both businesses and consumer segments.
At the core of Redington's business model is its multifaceted revenue stream, which has been expertly cultivated over the years. Redington generates profits not just from the traditional distribution of IT and mobility products but also through its expansive suite of value-added services. These include reseller programs, managed services, and consumer support services that enable the company to capture numerous points within the tech supply chain. The firm’s adept navigation of emerging markets and tech ecosystems helps maintain its competitive edge, propelling its financial performance. Redington Ltd.'s success is a testament to its ability to adapt and anticipate market shifts, ensuring that it remains integral to the technology distribution landscape.
Redington Ltd., originally established in 1993, has evolved into one of India’s premier end-to-end supply chain solutions providers in the technology space. Its journey begins with the simple yet profound objective of bridging the digital divide by facilitating technology access across diverse geographies. Operating in over 30 markets, Redington has woven a vast network that incorporates over 235 international brands. Through its intricate distribution channels, the company deftly intertwines logistics, financial services, and support services, crafting a robust infrastructure that ensures the seamless delivery of IT and mobility products. By embracing innovation and leveraging partnerships, Redington effectively dispatches technology products ranging from the most sophisticated software to essential hardware, catering to both businesses and consumer segments.
At the core of Redington's business model is its multifaceted revenue stream, which has been expertly cultivated over the years. Redington generates profits not just from the traditional distribution of IT and mobility products but also through its expansive suite of value-added services. These include reseller programs, managed services, and consumer support services that enable the company to capture numerous points within the tech supply chain. The firm’s adept navigation of emerging markets and tech ecosystems helps maintain its competitive edge, propelling its financial performance. Redington Ltd.'s success is a testament to its ability to adapt and anticipate market shifts, ensuring that it remains integral to the technology distribution landscape.
Record Quarter: Redington reported its best-ever quarter with revenue of INR 30,959 crores and profit after tax of INR 436 crores.
Strong Growth: Revenue grew 16% year-on-year and profit after tax rose 9%, with broad-based contributions across geographies and business segments.
Segment Highlights: Software Solutions Group (SSG) led with 40% growth, End Point Solutions (PCs) up 21%, and Mobility grew 15%, though Technology Solutions Group (TSG) declined 7%.
Working Capital Improvement: Working capital days fell to 28, interest and factoring costs dropped, and operational efficiency increased.
Arena Subsidiary: Arena continued to post losses (INR 22 crores), but losses and working capital needs are declining as non-core businesses are exited.
Margin Pressure: Gross margin declined due to Arena and TSG, despite improvement in SSG; management expects some margin headwinds and stable but not expanding margins.
Strategic Focus: Investments continue in AI, cloud, and data center capabilities; management is optimistic on future opportunities, especially in SSG.
