Redington Limited has informed the Exchange about Transcript
REDINGTON · price
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Redington posted its best-ever Q1 with revenue up 22% YoY (24% ex-Arena) and profit up 12% (15% ex-Arena), driven by strong showings in India (24%), UAE (35%), and KSA (32%). Mobility Solutions grew 44% and Cloud Solutions 41%, though gross margin dropped 60 bps YoY to 5.1% — about 20 bps from Arena/PayNet and 35-40 bps from large Technology Solutions Group (TSG) deals that carry lower margins. The Turkey subsidiary Arena took a one-time $8M provision for rising concordat (debt restructuring) cases, though management expects this to be non-recurring. Working capital improved to 37 days (down 2 days), and the company has a AA+ India credit rating with Net D/E of 0.23x.
The 60 bps gross margin compression and persistent Turkey/Arena concerns are short-term negatives, but management reaffirmed guidance of 2.3-2.5% operating profit margin and PAT above 1.3%, supported by opex discipline (up only 6% vs 22% revenue growth) and faster growth in higher-margin software and cloud businesses. Investors should watch for sustained margin recovery in TSG and the outcome of the Turkey strategic review.