Redington Limited · NSE:REDINGTON
Redington — Q3 FY2021 Earnings Presentation
29 slides from Redington's earnings presentation, December 2020
Slide 1: Redington (India) Limited Q3FY21 Earnings Presentation
REDINGTON (INDIA) LIMITED Q3FY21 Earnings Presentation Dec 2020
Slide 2: Disclaimer
Disclaimer This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Redington India Limited’s future business developments and economic performance. While these forw
Slide 3: Financial Highlights
Financial Highlights “Record quarter in the history of Redington – Highest revenue & PAT ever” • Q3FY21 – Global Revenue grew by 15%, EBITDA grew by 44%, PAT grew by 21%, Adjusted PAT grew by 78% • India – Revenue grew by 44%, EBITDA grew by 79%, PAT degrew by 1% and Adjusted PAT grew by 240% • Over
Slide 4: Financial Highlights: India Business
Financial Highlights INDIA BUSINESS • During the quarter, • India Distribution – Revenue grew by 45%, EBITDA grew by 48%, PAT degrew by 48%, Adjusted PAT grew by 91% • Strong growth in both IT & Mobility segment with IT registering 31% YoY growth and Mobility registering 69% YoY growth • WC days sto
Slide 5: Financial Highlights: Overseas Business
Financial Highlights OVERSEAS BUSINESS • During the quarter, • Inspite of revenue decline, Overseas registered strong growth in margins • Revenue decline was mainly led by degrowth in SSA on account of shift of few biz (at vendor end) to India • WC days stood at 12 days in Q3FY21 as against 30 days
Slide 6: Q3FY21 Highlights
Q4FY18 Highlights Q3FY21 Highlights Connecting The Dots Transformation from ‘Product’ to ‘Utility of Product’ 6
Slide 7: Q3FY21 Redington Global Performance
Q3FY21 Redington Global Performance ₹ in million REVENUE EBITDA PAT 15% 44% 21% 78%* 1,70,032 4,465 1,47,956 3,094 1,893 1,559 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 *Growth excluding one-off VSV tax provision of Rs.890mn (Mainly Gift of shares case) 7
Slide 8: Q3FY21 Performance by Market
Q3FY21 Performance by Market ₹ in million REVENUE EBITDA PAT 44% 79% 1% 77,295 240%* INDIA 53,770 1,854 1,038 369 364 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 2% 28% OVERSEAS 27% 94,186 92,737 2,611 1,529 2,056 1,190 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 *Growth excluding one-off VSV tax provis
Slide 9: Q3FY21 Contribution by Market
Q3FY21 Contribution by Market ₹ in million REVENUE EBITDA PAT 64% 55% 66% 58% 76% 81% 45%* 36% 45% 42% 34% 24% 19% Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 INDIA OVERSEAS INDIA OVERSEAS INDIA OVERSEAS *Contribution excluding one-off VSV tax provision of Rs.890mn (Mainly Gift of shares case) 9
Slide 10: Q3FY21 India Performance
Q3FY21 India Performance ₹ in million REVENUE EBITDA PAT 45% 48% DISTRIBUTION 48% 75,926 91%* 52,459 1,719 1,159 641 336 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 4% -ve to +ve -ve to +ve SERVICES# 135 1,311 1,369 28 Q3FY20 Q3FY21 Q3FY20 Q3FY21 -121 Q3FY20 Q3FY21 -272 *Growth excluding one-off VSV t
Slide 11: Q3FY21 Overseas Performance
Q3FY21 Overseas Performance ₹ in million REVENUE EBITDA PAT 1% 27% 30% 85,172 86,338 2,423 META 1,401 1,906 1,080 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 29% 25% 16% 9,014 SSA 6,399 188 150 110 128 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Note: Overseas performance in c/c terms – Revenue (5%); EB
Slide 12: Q3FY21 Revenue Performance by Verticals
Q3FY21 Revenue Performance by Verticals INDIA OVERSEAS GLOBAL 2% 2% 1% 1% 1% 1% 35% 41% 38% 40% 37% 41% 63% 57% 61% 59% 62% 58% Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 IT Mobility Services IT Mobility Services IT Mobility Services Note: Upon re-grouping, only smartphones are shown under Mobility N
Slide 13: Q3FY21 Working Capital Days
Q3FY21 Working Capital Days INDIA OVERSEAS GLOBAL 28 22 18 39 34 2 30 2 3 14 14 14 11 12 12 Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21 13 13
Slide 14: Q3FY21 Free Cash Flow Statement
Q3FY21 Free Cash Flow Statement ₹ in million Particulars Q3FY20 Q2FY21 Q3FY21 Profit Before Taxation 2,281 2,412 3,716 Non-cash items 915 465 573 Outflow of Finance Cost 383 171 173 Changes in Working Capital (11,771) (224) (1,431) Direct Tax Paid (561) (645) (437) Net Cash Flow from Operations (8,7
Slide 15: Q3FY21 Top Vendors
Q3FY21 Top 5 Vendors REVENUE 34% OTHERS 39% SAMSUNG 4% 5% 5% LENOVO 5% 7% DELL EMC 7% 9% HP Inc 12% APPLE 41% 32% Q3FY20 Q3FY21 15 15
Slide 16: Q3FY21 ProConnect India
Q3FY21 ProConnect India • PCS registered growth across all metrics with revenue growth of 32% YoY • PCS registered EBITDA margin of 10% for the quarter REVENUE EBITDA PAT 32% -ve to +ve -ve to +ve 1,369 135 28 1,037 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 -153 -280 ₹ in million ₹ in million ₹ in m
Slide 17: 9MFY21 Performance
Q3FY18 Highlights 9MFY18 Highlights 9MFY21 Performance Connecting The Dots Transformation from ‘Product’ to ‘Utility of Product’ 17
Slide 18: 9MFY21 Redington Global Performance
9MFY21 Redington Global Performance ₹ in million REVENUE EBITDA PAT 7% 21% 15% 37%* 4,15,112 3,88,365 9,876 8,170 4,539 3,960 9MFY20 9MFY21 9MFY20 9MFY21 9MFY20 9MFY21 *Growth excluding one-off VSV tax provision of Rs.890mn (Mainly Gift of shares case) 18 18
Slide 19: 9MFY21 Performance by Market
9MFY21 Performance by Market ₹ in million REVENUE EBITDA PAT 14% 11% 1% 1,64,564 69%* 1,43,958 INDIA 3,448 3,815 1,274 1,260 9MFY20 9MFY21 9MFY20 9MFY21 9MFY20 9MFY21 3% 28% 22% OVERSEAS 2,44,407 2,50,548 6,061 4,722 3,279 2,686 9MFY20 9MFY21 9MFY20 9MFY21 9MFY20 9MFY21 *Growth excluding one-off VSV
Slide 20: 9MFY21 Contribution by Market
9MFY21 Contribution by Market ₹ in million REVENUE EBITDA PAT 63% 60% 58% 61% 68% 72% 40%* 37% 40% 42% 39% 32% 28% 9MFY20 9MFY21 9MFY20 9MFY21 9MFY20 9MFY21 INDIA OVERSEAS INDIA OVERSEAS INDIA OVERSEAS *Contribution excluding one-off VSV tax provision of Rs.890mn (Mainly Gift of shares case) 20
Slide 21: 9MFY21 India Performance
9MFY21 India Performance ₹ in million REVENUE EBITDA PAT 15% 12% DISTRIBUTION 17% 1,60,945 45%* 1,39,820 3,415 3,056 1,436 1,197 9MFY20 9MFY21 9MFY20 9MFY21 9MFY20 9MFY21 13% 2% -ve to +ve SERVICES 4,138 3,619 392 400 63 9MFY20 9MFY21 9MFY20 9MFY21 -162 9MFY20 9MFY21 *Growth excluding one-off VSV ta
Slide 22: 9MFY21 Overseas Performance
9MFY21 Overseas Performance ₹ in million REVENUE EBITDA PAT 4% 30% 24% 2,29,503 META 2,20,269 5,539 4,274 2,917 2,358 9MFY20 9MFY21 9MFY20 9MFY21 9MFY20 9MFY21 13% 16% 10% 24,138 SSA 21,045 522 448 362 328 9MFY20 9MFY21 9MFY20 9MFY21 9MFY20 9MFY21 Note: Overseas performance in c/c terms – Revenue (3
Slide 23: 9MFY21 Revenue Performance by Verticals
9MFY21 Revenue Performance by Verticals INDIA OVERSEAS GLOBAL 3% 2% 1% 1% 1% 1% 27% 31% 33% 35% 36% 37% 70% 67% 66% 63% 62% 64% 9MFY20 9MFY21 9MFY20 9MFY21 9MFY20 9MFY21 IT Mobility Services IT Mobility Services IT Mobility Services Note: Upon Note: re-grouping, Services only smartphones represents
Slide 24: 9MFY21 Working Capital Days
9MFY21 Working Capital Days INDIA OVERSEAS GLOBAL 27 24 20 43 38 34 0 1 1 16 16 15 15 14 14 9MFY20 H1FY21 9MFY21 9MFY20 H1FY21 9MFY21 9MFY20 H1FY21 9MFY21 24 24
Slide 25: 9MFY21 Free Cash Flow Statement
9MFY21 Free Cash Flow Statement ₹ in million Particulars 9MFY20 H1 FY21 9MFY21 Profit Before Taxation 5,262 3,717 7,433 Non-cash items 1,892 891 1,463 Outflow of Finance Cost 1,486 595 768 Changes in Working Capital (6,630) 21,834 20,535 Direct Tax Paid (1,344) (932) (1,369) Net Cash Flow from Opera
Slide 26: 9MFY21 Balance Sheet
9MFY21 Balance Sheet ₹ in million Particulars 30-DEC-19 30-DEC-20 Source: Networth 41,514 46,432 Net Debt 13,960 (25,000) Minority Interest 3,666 3,891 Total 59,140 25,323 Application: Fixed Assets 4,486 4,348 Goodwill 218 183 Right to Use Assets 2,616 1,810 Net Assets 51,820 18,982 Total 59,140 25,
Slide 27: 9MFY21 Top Vendors
9MFY21 Top 5 Vendors REVENUE 38% 38% OTHERS SAMSUNG 5% LENOVO 6% 6% 7% DELL EMC 8% 7% HP Inc 13% 11% APPLE 29% 32% 9MFY20 9MFY21 27 27
Slide 28: Shareholding Pattern
Shareholding Pattern Others Others 12.2% 11.1% Mutual Funds Mutual Funds 11.5% 12.2% Synnex Mauritius Synnex Mauritius Limited Limited 24.2% 24.2% Affirma Affirma Capital Capital 15.8% 15.8% Foreign Foreign Institutional Institutional Investors & FPIs Investors & FPIs 36.3% 36.7% Sep-2020 Dec-2020 2
Slide 29: Investor Contacts
Investor Contacts M. Muthukumarasamy Compliance Officer Redington (India) Limited Redington House, Centre Point, Plot No. 11 (SP), Thiru. Vi. Ka. Industrial Estate, Guindy, Chennai 600 032 https://www.redingtongroup.com Sowmiya M Senior Manager – Investor Relations Connecting The Dots sowmiya.manick