India's Redington's quarterly profit falls as expenses mount

Redington

01/08/2023 13:38

CHENNAI, Aug 1 (Reuters) - India's Redington  REDI.NS 
reported a 21% fall in quarterly profit on Tuesday, as the
technology devices distributor wrestled with higher expenses at
a time when demand for work-from-home equipment also slowed. 
    The Chennai-based company, which distributes IT products of
global giants like Apple  AAPL.O  and Dell Technologies
 DELL.N , said net profit dropped to 2.49 billion rupees ($30.3
million) for the quarter ended June 30, compared with 3.16
billion rupees a year earlier. 
    Corporations globally are reeling from the impact of higher
expenses, partly due to higher interest rates, while several
firms including Redington are also investing heavily to digitize
their businesses more.
    The company reported expenses climbing 27%, which ate into
its bottomline.
    A pandemic-led demand for consumer electronics, including
smartphones and personal computers, is fading as people are
spending more time in physical schools and offices, denting
demand for work- and learn-from-home equipment.
    Revenue from operations rose 26% to 211.87 billion rupees
but dropped 3% sequentially. 
    Revenue from its rest of the world unit, which makes up more
than half of its topline and includes the Middle East, Turkey
and Africa, dropped around 5% from the previous quarter even as
it jumped 29% from a year earlier.
    Shares of Redington closed 1.6% higher ahead of its results,
with the stock up just over 1% this year.


($1 = 82.2250 Indian rupees)

 (Reporting by Praveen Paramasivam in Chennai; Editing by Sonia
Cheema)
 ((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))