Redington Limited Reports Best Q2 Performance with 17% Revenue Growth to INR 29,118 Crores

Redington Limited delivered its best quarterly performance with revenue of INR 29,118 crores, marking 17% growth year-on-year. The company achieved quarterly profit of INR 388 crores with PAT at 1.33% for the group and 1.57% excluding Arena. Growth was driven across all business segments with India growing 23%, UAE 23%, and Saudi Arabia 10%. The newly formed Software Solutions Group (SSG) showed strong performance with 48% growth, contributing 16% to topline. Mobility business grew 18% contributing 35% of revenue, while ESG business grew 11% contributing 32%. The company maintained efficient working capital management at 31 days and controlled opex growth at 9%. Arena subsidiary continued facing challenges with INR 37 crores loss, though the company divested Connect Vodafone contract to reduce Turkish lira exposure. Redington was awarded number 1 IT distributor in India by VAR India for the third consecutive year.

Redington Management Targets 30-50% Growth for Software Solutions Group

Redington management anticipates PC business growth may increase in the second half if current trends continue. The company plans 30-50% growth for its Software Solutions Group over the next 6-12 quarters, an increase from 20-23% growth last year. Management expects full benefits from the Vodafone Connect sale by Q4 and next fiscal year. The company remains optimistic about business growth in India, UAE, and KSA for the next 2-3 quarters, particularly in mobility.