India's Redington posts muted Q1 profit as international demand falls

Redington

31/07/2024 15:17

BENGALURU, July 31 (Reuters) - IT products distributor
Redington  REDI.NS  reported a 1% fall in its first-quarter
profit on Wednesday, as consumers cut their spending, hurting
demand for gadgets.
    The Apple  AAPL.O  and Samsung  005930.KS  gadgets
distributor's consolidated net profit fell 1% to 2.46 billion
rupees ($29.8 million) for the first quarter ended June 30 from
2.49 billion rupees 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% 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% to
212.82 billion rupees, 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% and 4% fall in its SISA
and ROW segments, respectively.  
    Redington's earnings before interest, tax, depreciation and
amortization (EBITDA) margin contracted to 12% from 16% an year
ago.
    Shares of Redington closed 1.1% lower ahead of results,
after results.


($1 = 83.6590 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru)
 ((AshnaTeresa.Britto@thomsonreuters.com;))