Redington Q1 results: Net profit down 1% at Rs 246 cr as demands fall

Redington's operations from rest of the world (ROW) segment, which operates in 31 countries, including Rwanda, Oman and Turkey, and contributes nearly 50 per cent to its revenue has been in pressure

IT products distributor Redington reported a 1 per cent fall in its first-quarter profit on Wednesday, as consumers cut their spending, hurting demand for gadgets.

The Apple and Samsung gadgets distributor's consolidated net profit fell 1 per cent to Rs 246 cr ($29.8 million) for the first quarter ended June 30 from Rs 249 cr an year ago.

Redington's operations from rest of the world (ROW) segment, which operates in 31 countries, including Rwanda, Oman and Turkey, and contributes nearly 50 per cent to its revenue, have been under pressure as it recorded currency fluctuations and stresses that continues in African, Nigerian and Egyptian markets.

 

Its said revenue from operations saw muted growth at 0.5 per cent to Rs 21,282 cr, but was dragged by its ROW segment.

The company also operates via its Singapore, India and South Asia (SISA) segment.

Its technology solutions segment, which provides networking, security and software services, saw a 5 per cent and 4 per cent fall in its SISA and ROW segments, respectively.

Redington's earnings before interest, tax, depreciation and amortization (EBITDA) margin contracted to 12 per cent from 16 per cent an year ago.

Shares of Redington closed 1.1 per cent lower ahead of results, after results.