Indian IT products distributor Redington's profit falls on subdued demand in some markets

Redington

29/10/2024 14:36

BENGALURU, Oct 29 (Reuters) - Indian IT products
distributor Redington  REDI.NS  reported a 3.5% fall in
second-quarter profit on Tuesday, hurt by slowdown in demand for
personal computers and phones in some of its international
markets.  
    Over the last few quarters, markets like Turkey and Africa
have been sore spots for Redington, which distributes gadgets
produced by Apple  AAPL.O  and Samsung  005930.KS , as high
inflation has squeezed consumer spending.
    The company's consolidated net profit stood at 2.93 billion
rupees ($34.9 million) for the three months ending Sept. 30,
compared to 3.03 billion rupees a year earlier.
    Revenue from its biggest verticals - personal computers and
print supplies, and mobile phones - dropped 3% and 4%,
respectively in the rest of the world segment which includes
countries such as Turkey.  
    "Challenges in the Turkey business continued due to
softening demand caused by tough market conditions," V.S.
Hariharan, group chief executive officer, said in a statement. 
    Redington has also been expanding its reach globally,
driving its total expenses up by around 12% in the quarter.
    Its revenue from operations also rose 12% to 248.96 billion
rupees, aided by steady demand in the Indian and south Asian
markets.       
    
($1 = 84.0350 Indian rupees)

 (Reporting by Praveen Paramasivam in Chennai and Nishit Navin
in Bengaluru; Editing by Mrigank Dhaniwala)
 ((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))