India's Redington posts 10% fall in Q3 profit as gadget demand wanes

Redington

06/02/2024 13:22

CHENNAI, Feb 6 (Reuters) - Indian technology products
distributor Redington  REDI.NS  reported a 10% decline in
third-quarter profit on Tuesday, amid waning demand for
electronic goods from individuals and businesses.
    Persistent inflation has eroded household and corporate
budgets globally, prompting consumers to cut back spending on
newer models of gadgets, including laptops and personal
computers.
    The Apple and Samsung gadgets distributor said consolidated
profit dropped to 3.41 billion rupees ($41.1 million) for the
third quarter ended Dec. 31, according to an exchange filing.
    Revenue from operations rose 8% to 235.05 billion rupees,
marking its slowest growth and the first single-digit increase
in two years. Total expenses climbed 9%, further eating into its
earnings.
    Redington, which has partnered with over 300 brands
including Dell and Microsoft, had earlier said that elevated
inflation and interest rates, as well as weaker currencies in
certain countries pose challenges. 
    Shares of the Chennai, Tamil Nadu-based company closed 2%
higher ahead of the results.


    ($1 = 83.0499 Indian rupees)
  

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