Q4 FY25 - Earnings Call Transcript
Awaiting price reaction for this filing.
Redington Limited posted its best-ever Q4 with revenue of Rs. 26,510 crores (up 18% YoY) and profit of Rs. 400 crores (up 23% YoY), excluding one-off Paynet divestment gains. For full year FY25, revenue touched Rs. 99,562 crores (up 11%) with profit of Rs. 1,340 crores (up 10%); ROCE was 21% for the year and working capital held steady at 34 days. Cloud Solutions Group led with 41% growth, followed by Technology Solutions at 28%, Mobility at 18%, and Endpoint Solutions at 11%, with India (26%), UAE (24%), Saudi (7%) and Africa (11%) all contributing positively. The Board declared a final dividend of Rs. 6.8 per share (~40% of profits), while management guided operating margin to stay at 2.3-2.5% with only slow improvement possible from software/cloud mix shift.
Paynet divestment proceeds of Rs. 626 crores will sharply cut Arena debt (from ~$170M to ~$100M), lowering interest and factoring costs and supporting better subsidiary performance. Software/cloud is the key growth lever (15% of mix, targeted to exceed 20% over time), though margin upside will be gradual and FY26 tax rates will rise to 25-27% due to global minimum tax norms.