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Earnings Call

Redington Earnings Call: Key Takeaways

Redington delivered record Q4 revenue of ₹33,269 crore, but significant geopolitical disruptions in West Asia and a major Turkish impairment (₹75.2 cr) impacted the bottom line and dividend payout.

Highlights
Revenue growthRecord ₹33,269cr Q4 revenue, 25% YoY growth.
MarginsPAT margins at 1.4%; Turkish impairment and Opex premiums hurt margins.
Order bookLarge deals pipeline at ₹2,500cr for full year.
Demand visibilityStrong India PC/Mobility demand; Middle East demand hit by conflict.
Management confidenceCautiously optimistic; India strong, Middle East visibility remains low.

Growth

Revenue grew 25% YoY; India business up 50%, while Middle East faced a 12% Q4 de-growth.

Outlook

Management guides continued India momentum and cloud expansion, but warns of Q1/Q2 softness in Middle East.

Risks

Geopolitical conflict in West Asia, supply chain disruptions, and high interest rates (40%+) in Turkey.

Last quarter's promises, checked

Delivered

  • Guided SSG 40% growth → delivered 31% in Q4 (= BEAT)
  • Targeted ROCE 18-20% → delivered 22.1% in Q3 (= BEAT)
  • Guided India strong momentum → delivered 50% Q4 growth (= BEAT)

Partly delivered

  • Guided Opex control at 9% → delivered Opex growth slower than revenue but hit by freight spikes (= PARTIAL)

Missed

  • Guided Arena loss reduction → delivered ₹75.2cr Turkish impairment (= MISS)
  • Targeted Middle East growth → delivered 12% de-growth (= MISS)
  • Guided TSG segment recovery → delivered margin pressure and recognition delays (= MISS)
Source

Earnings Call filed with NSE, NSE: REDINGTON. Summary written with AI assistance from the document.

Read the document ↗

Redington Ltd: key numbers

Share price
₹407.25
Market cap
₹31,838 Cr
Revenue (annual)
₹1,19,162 Cr
Net profit (annual)
₹1,490 Cr
P/E (TTM)
18.7×Sector 41.4×
Promoter holding
0.00%+0.00% QoQ
FII holding
61.96%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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Key figure
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