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Redington's share price falls by more than 5% due to dismal Q1 results

Aug 2, 2023

By: BlinkX Research Team

On August 2, Redington Ltd. shares fell 5.95% to Rs 172.30 as the company's June quarter net profit fell YoY.

Redington Ltd, a supplier of technology solutions, reported a 21.2% YoY reduction in net profit for Q1FY24 at Rs 248.8 crore as compared to Rs 315.8 crore recorded in the same period the previous year.

The Chennai-based company's total revenue during the period under review was Rs 21,187.2 crore, an increase of 26.1 percent YoY. It sells technology products from multinational corporations including Apple and Dell Technologies. Redington reported total revenue of Rs 16,803.1 crore for a similar quarter last year, the company stated in a regulatory filing.

While it increased 29% from the previous year, revenue from its rest of the world unit—which accounts for more than half of its topline and includes the Middle East, Turkey, and Africa—fell around 5% from the previous quarter.

EBITDA, or profits before interest, tax, depreciation, and amortization, decreased 9.2% to Rs 419.2 crore in the first quarter of the current fiscal year compared to Rs 461.8 crore in the same time last year.

In the reporting quarter, the EBITDA margin is 2% as opposed to 3% at the same time last year.

Source: Media Reports