Redington Limited · NSE:REDINGTON
Redington — Q3 FY2024 Earnings Presentation
27 slides from Redington's earnings presentation, May 16, 2024
Slide 1: Earnings Presentation Q3FY24
EARNINGS PRESENTATION Q3FY24
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 Limited’s future business developments and economic performance. While these forward lo
Slide 3: Financial Highlights
Financial Highlights “Highest ever Revenue in any Quarter” ₹ 23,550 cr. 8% YoY 6% QoQ “Sequential growth in PAT as a % of Revenue” Q1FY24 Q2FY24 Q3FY24 1.17% 1.36% 1.45%
Slide 4: Financial Highlights
Financial Highlights “Highest ever Quarter Revenue” • Q3FY24 – On a Global basis, Revenue grew by 8%, GM grew by 7%, EBITDA degrew by 10% and PAT degrew by 10% • SISA – Revenue grew by 16%, GM grew by 10%, EBITDA grew by 13% and PAT grew by 8% • ROW – Revenue grew by 2%, GM grew by 5%, EBITDA degrew
Slide 5: Financial Highlights: SISA Business
Financial Highlights SISA BUSINESS ROCE was at 23% and ROE at 21% for 9mFY24 9mFY24 Revenue grew by 17%, GM grew by 14%, EBITDA grew by 14% and PAT grew by 2% WC days stood at 41 days India Distribution • Strong double digit Revenue growth trend continues • 9mFY24: Revenue grew by 22%, GM grew by 22
Slide 6: Financial Highlights: ROW Business
Financial Highlights ROW BUSINESS 9mFY24 Revenue grew by 16%, GM grew by 10%, EBITDA degrew by 19% and PAT degrew by 33% Arena Revenue grew by 16% YoY During the quarter, • Revenue grew by 2%, GM grew by 5%, EBITDA degrew by 25% and PAT degrew by 22% • Upside compared to Q2FY24 despite geo-political
Slide 7: Q3FY24 Performance
2] Redington Q3FY24 Performance
Slide 8: Q3FY24 Redington Global Performance
Q3FY24 Redington Global Performance REVENUE GM EBITDA PAT 8% 7% 10% 10% 23,550 1,366 622 21,715 1,278 562 380 341 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 ₹ in Cr
Slide 9: Q3FY24 Performance by Market
Q3FY24 Performance by Market REVENUE GM EBITDA PAT 16% 10% 13% 8% 11,417 286 9,833 567 254 515 SISA 146 158 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 2% 5% 25% 22% 12,132 ROW 11,882 799 368 234 763 276 183 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 ₹ in Cr
Slide 10: Q3FY24 Contribution by Market
Q3FY24 Contribution by Market REVENUE GM EBITDA PAT 52% 49% 54% 55% 60% 59% 59% 62% 45% 48% 51% 46% 40% 41% 41% 38% Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 SISA ROW SISA ROW SISA ROW SISA ROW
Slide 11: Q3FY24 Working Capital Days
Q3FY24 Working Capital Days SISA ROW GLOBAL 3 7 6 3 1 38 38 35 36 35 34 31 30 27 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24
Slide 12: Q3FY24 Top Vendors
Q3FY24 Top 5 Vendors REVENUE 39% 42% OTHERS SAMSUNG 5% LENOVO 6% 5% 6% DELL EMC 9% 6% HP Inc 11% 10% APPLE 30% 31% Q3FY23 Q3FY24
Slide 13: Q3FY24 Verticals Revenue
Q3FY24 Verticals Revenue SISA ROW GLOBAL Verticals Q3FY23 Q3FY24 YoY Q3FY23 Q3FY24 YoY Q3FY23 Q3FY24 YoY ESG 3,345 3,200 -4% 4,178 3,891 -7% 7,522 7,091 -6% TSG 3,432 3,424 0% 2,897 2,766 -5% 6,329 6,190 -2% MSG 2,653 4,207 59% 4,227 4,781 13% 6,880 8,988 31% CSG 257 367 43% 287 413 44% 544 780 43%
Slide 14: Q3FY24 Free Cash Flow Statement
Q3FY24 Free Cash Flow Statement Particulars (₹ in Cr) Q3FY23 Q4FY23 Q3FY24 Profit Before Taxation 494 455 434 Non-cash items 29 61 45 Finance Cost 73 70 53 Changes in Working Capital (1,576) (537) (610) Direct Tax Paid (64) (106) (105) Net Cash Flow from Operations (1,044) (57) (183) Capex (23) (86)
Slide 15: Q3FY24 Performance Factsheet
Q3FY24 Performance Factsheet SISA (₹ in Cr) Q3FY23 Q3FY24 GLOBAL (₹ in Cr) Q3FY23 Q3FY24 Revenue 9,833 11,417 Revenue 21,715 23,550 GM 515 567 GM 1,278 1,366 EBITDA 254 286 EBITDA 622 562 PAT 146 158 PAT 380 341 ROW (₹ in Cr) Q3FY23 Q3FY24 Working Capital Days Q3FY23 Q3FY24 Revenue 11,882 12,132 SIS
Slide 16: 9mFY24 Performance
2] Redington 9mFY24 Performance
Slide 17: 9mFY24 Redington Global Performance
9mFY24 Redington Global Performance REVENUE GM EBITDA PAT 16% 11% 4% 18% 67,097 57,624 3,985 1,671 1,602 3,575 1,082 893 9mFY23 9mFY24 9mFY23 9mFY24 9mFY23 9mFY24 9mFY23 9mFY24 ₹ in Cr
Slide 18: 9mFY24 Performance by Market
9mFY24 Performance by Market REVENUE GM EBITDA PAT 17% 14% 14% 2% 31,594 852 26,979 745 467 478 SISA 1,481 1,684 9mFY23 9mFY24 9mFY23 9mFY24 9mFY23 9mFY24 9mFY23 9mFY24 16% 10% 19% 33% 35,503 2,300 ROW 2,093 927 30,645 750 616 415 9mFY23 9mFY24 9mFY23 9mFY24 9mFY23 9mFY24 9mFY23 9mFY24 ₹ in Cr
Slide 19: 9mFY24 Contribution by Market
9mFY24 Contribution by Market REVENUE GM EBITDA PAT 47% 46% 53% 53% 59% 58% 55% 57% 53% 54% 47% 47% 41% 42% 45% 43% 9mFY23 9mFY24 9mFY23 9mFY24 9mFY23 9mFY24 9mFY23 9mFY24 SISA ROW SISA ROW SISA ROW SISA ROW
Slide 20: 9mFY24 Working Capital Days
9mFY24 Working Capital Days SISA ROW GLOBAL 2 4 3 3 1 2 39 41 38 35 37 33 34 34 30 9mFY23 H1FY24 9mFY24 9mFY23 H1FY24 9mFY24 9mFY23 H1FY24 9mFY24
Slide 21: Working capital trend
Working capital trend GLOBAL Pre-Covid Covid Post-Covid 41 44 37 36 37 31 14 14 FY17 FY18 FY19 FY20 FY21 FY22 FY23 9mFY24 WC levels were severely low during the Covid period as a result of demand supply situation during that time. However, WC has returned to normalized levels now. Also, We recommend
Slide 22: 9mFY24 Top Vendors
9mFY24 Top 5 Vendors REVENUE 38% 41% OTHERS SAMSUNG 6% LENOVO 5% 7% 6% DELL EMC 8% 7% HP Inc 12% 11% APPLE 29% 30% 9mFY23 9mFY24
Slide 23: 9mFY24 Verticals Revenue
9mFY24 Verticals Revenue SISA ROW GLOBAL Verticals 9mFY23 9mFY24 YoY 9mFY23 9mFY24 YoY 9mFY23 9mFY24 YoY ESG 10,885 10,072 -7% 10,991 12,066 10% 21,877 22,138 1% TSG 8,540 9,918 16% 6,640 7,749 17% 15,180 17,667 16% MSG 6,167 9,934 61% 11,396 13,828 21% 17,562 23,762 35% CSG 703 997 42% 818 1,086 33
Slide 24: 9mFY24 Free Cash Flow Statement
9mFY24 Free Cash Flow Statement Particulars (₹ in Cr) 9mFY23 FY23 9mFY24 Profit Before Taxation 1,379 1,833 1,194 Non-cash items 132 192 125 Finance Cost 144 215 200 Changes in Working Capital (4,615) (5,153) (1,340) Direct Tax Paid (229) (335) (331) Net Cash Flow from Operations (3,190) (3,247) (15
Slide 25: 9mFY24 Performance Factsheet
9mFY24 Performance Factsheet SISA (₹ in Cr) 9mFY23 9mFY24 GLOBAL (₹ in Cr) 9mFY23 9mFY24 Revenue 26,979 31,594 Revenue 57,624 67,097 GM 1,481 1,684 GM 3,575 3,985 EBITDA 745 852 EBITDA 1,671 1,602 PAT 467 478 PAT 1,082 893 ROW (₹ in Cr) 9mFY23 9mFY24 Working Capital Days 9mFY23 9mFY24 Revenue 30,645
Slide 26: Shareholding Pattern
Shareholding Pattern Others Others Synnex 27.4% Synnex 28.3% Technology Technology International International Corporation Corporation 24.1% 24.1% Insurance Insurance Companies Companies 3.7% 3.7% FPIs FPIs (Corporates) (Corporates) 32.1% 32.8% Mutual Funds Mutual Funds 11.8% 11.9% Sep-2023 Dec-2023
Slide 27: Investor Contacts
Investor Contacts Vijayshyam Acharya K Compliance Officer Registered office: Block 3, Plathin, Redington Tower, Inner Ring Road, Saraswathy Nagar West, 4th Street, Puzhuthivakkam, Chennai - 600 091 Connecting The Dots https://www.redingtongroup.com Transformation from ‘Product’ to ‘Utility of Produc