Redington Limited · NSE:REDINGTON
Redington — Q4 FY2021 Earnings Presentation
30 slides from Redington's earnings presentation, March 2021
Slide 1: Redington (India) Limited Q4FY21 Earnings Presentation
REDINGTON (INDIA) LIMITED Q4FY21 Earnings Presentation Mar 2021
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 Highest ever Highest ever Highest ever REVENUES EBITDA PAT Rs.8,454 mn^ Rs.5,70,416 mn Rs.14,390 mn Rs.7,564 mn Lowest ever Highest ever Highest ever WC DAYS ROCE# FCF 14 days 36.5% Rs.33,600 mn #ROCE is calculated net of cash and on average capital employed Note:^Excluding PAT
Slide 4: Financial Highlights
Financial Highlights • Q4FY21 – • Global – Revenue grew by 23%, EBITDA grew by 77%, PAT grew by 154% • India – Revenue grew by 45%, EBITDA grew by 142%, PAT grew by 935% • Overseas – Revenue grew by 10%, EBITDA grew by 51% and PAT grew by 70% • FY21 – • Global – Revenue grew by 11%, EBITDA grew by 3
Slide 5: Financial Highlights: India Business
Financial Highlights INDIA BUSINESS During the quarter, • India Distribution – Revenue grew by 46%, EBITDA grew by 71%, PAT grew by 135% • Strong growth across IT Consumer, IT Enterprise & Mobility segment • WC days stood at 15 days in Q4FY21 as against 33 days in Q4FY21 • Generated positive FCF of
Slide 6: Financial Highlights: Overseas Business
Financial Highlights OVERSEAS BUSINESS • During the quarter, • Earnings growth was faster than revenue growth • Impact to revenue growth in SSA on account of shift of few biz (at vendor end) to India • WC days stood at 10 days in Q4FY21 as against 29 days in Q4FY20 • Strong FCF generation at Rs. 4,9
Slide 7: Q4FY21 Highlights
Q4FY18 Highlights Q4FY21 Highlights Connecting The Dots Transformation from ‘Product’ to ‘Utility of Product’ 7
Slide 8: Q4FY21 Redington Global Performance
Q4FY21 Redington Global Performance ₹ in million REVENUE EBITDA PAT 23% 77% 154% 1,55,303 4,515 1,26,773 3,025 2,544 1,192 Q4FY20 Q4FY21 Q4FY20 Q4FY21 Q4FY20 Q4FY21 8
Slide 9: Q4FY21 Performance by Market
Q4FY21 Performance by Market ₹ in million REVENUE EBITDA PAT 45% 142% 935% 64,267 INDIA 1,779 1,197 44,238 734 116 Q4FY20 Q4FY21 Q4FY20 Q4FY21 Q4FY20 Q4FY21 OVERSEAS 10% 51% 70% 2,736 1,828 82,535 91,036 1,810 1,076 Q4FY20 Q4FY21 Q4FY20 Q4FY21 Q4FY20 Q4FY21 9
Slide 10: Q4FY21 Contribution by Market
Q4FY21 Contribution by Market ₹ in million REVENUE EBITDA PAT 65% 59% 61% 60% 71% 90% 35% 41% 39% 40% 29% 10% Q4FY20 Q4FY21 Q4FY20 Q4FY21 Q4FY20 Q4FY21 INDIA OVERSEAS INDIA OVERSEAS INDIA OVERSEAS 10
Slide 11: Q4FY21 India Performance
Q4FY21 India Performance ₹ in million REVENUE EBITDA PAT 46% 71% DISTRIBUTION 135% 62,979 1,631 1,128 42,997 956 481 Q4FY20 Q4FY21 Q4FY20 Q4FY21 Q4FY20 Q4FY21 4% -ve to +ve -ve to +ve SERVICES# 1,241 148 1,288 69 Q4FY20 Q4FY21 Q4FY20 Q4FY21 Q4FY20 Q4FY21 -222 -365 #Services contains Ensure India fig
Slide 12: Q4FY21 Overseas Performance
Q4FY21 Overseas Performance ₹ in million REVENUE EBITDA PAT 15% 65% 85% 86,232 74,822 2,487 1,642 META 1,505 889 Q4FY20 Q4FY21 Q4FY20 Q4FY21 Q4FY20 Q4FY21 38% 18% 1% SSA 7,713 305 249 4,804 187 186 Q4FY20 Q4FY21 Q4FY20 Q4FY21 Q4FY20 Q4FY21 Note: Overseas performance in c/c terms – Revenue 10%; EBITD
Slide 13: Q4FY21 Revenue Performance by Verticals
Q4FY21 Revenue Performance by Verticals INDIA OVERSEAS GLOBAL 3% 2% 1% 1% 1% 1% 24% 27% 31% 34% 41% 36% 73% 71% 65% 68% 63% 58% Q4FY20 Q4FY21 Q4FY20 Q4FY21 Q4FY20 Q4FY21 IT Mobility Services IT Mobility Services IT Mobility Services Note: Upon re-grouping, only smartphones are shown under Mobility N
Slide 14: Q4FY21 Working Capital Days
Q4FY21 Working Capital Days INDIA OVERSEAS GLOBAL 18 18 19 33 29 30 4 2 0 15 11 12 12 12 10 Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21 14 14
Slide 15: Q4FY21 Free Cash Flow Statement
Q4FY21 Free Cash Flow Statement ₹ in million Particulars Q4FY20 Q3FY21 Q4FY21 Profit Before Taxation 1,659 3,716 3,848 Non-cash items 721 573 522 Outflow of Finance Cost 469 173 220 Changes in Working Capital 12,385 (1,431) 2,803 Direct Tax Paid (502) (437) (1,265) Net Cash Flow from Operations 14,7
Slide 16: Q4FY21 Top Vendors
Q4FY21 Top 5 Vendors REVENUE 39% 32% OTHERS SAMSUNG 5% 5% 6% LENOVO 6% 9% DELL EMC 10% 12% HP Inc 14% APPLE 36% 26% Q4FY20 Q4FY21 16 16
Slide 17: Q4FY21 ProConnect India
Q4FY21 ProConnect India • PCS registered growth across all metrics with revenue growth of 36% YoY • PCS registered EBITDA margin of 11% for the quarter REVENUE EBITDA PAT 36% -ve to +ve -ve to +ve 1,288 69 148 Q4FY20 Q4FY21 947 Q4FY20 Q4FY21 Q4FY20 Q4FY21 -254 -373 ₹ in million ₹ in million ₹ in mil
Slide 18: FY21 Performance
Q3FY18 Highlights 9MFY18 Highlights FY21 Performance Connecting The Dots Transformation from ‘Product’ to ‘Utility of Product’ 18
Slide 19: FY21 Redington Global Performance
FY21 Redington Global Performance ₹ in million REVENUE EBITDA PAT 11% 34% 47% 64%* 5,70,416 5,15,138 14,390 7,564 10,714 5,152 FY20 FY21 FY20 FY21 FY20 FY21 *Growth excluding one-off VSV tax provision of Rs.890mn (Mainly Gift of shares case) 19 19
Slide 20: FY21 Performance by Market
FY21 Performance by Market ₹ in million REVENUE EBITDA PAT 22% 34% 77% 2,28,832 141%* INDIA 1,88,196 5,594 4,183 2,457 1,389 FY20 FY21 FY20 FY21 FY20 FY21 4% 35% 36% OVERSEAS 3,26,942 3,41,584 8,796 5,107 6,531 3,763 FY20 FY21 FY20 FY21 FY20 FY21 *Growth excluding one-off VSV tax provision of Rs.890
Slide 21: FY21 Contribution by Market
FY21 Contribution by Market ₹ in million REVENUE EBITDA PAT 63% 60% 61% 61% 68% 73% 40%* 37% 40% 39% 39% 32% 27% FY20 FY21 FY20 FY21 FY20 FY21 INDIA OVERSEAS INDIA OVERSEAS INDIA OVERSEAS *Contribution excluding one-off VSV tax provision of Rs.890mn (Mainly Gift of shares case) 21
Slide 22: FY21 India Performance
FY21 India Performance ₹ in million REVENUE EBITDA PAT 22% 26% 68%* DISTRIBUTION 21% 2,23,924 5,046 2,325 1,82,817 4,012 1,917 FY20 FY21 FY20 FY21 FY20 FY21 9% 221% -ve to +ve SERVICES 5,379 132 4,908 548 171 FY20 FY21 FY20 FY21 FY20 FY21 -528 *Growth excluding one-off VSV tax provision of Rs.890mn
Slide 23: FY21 Overseas Performance
FY21 Overseas Performance ₹ in million REVENUE EBITDA PAT 7% 39% 40% 3,15,734 META 2,95,090 8,026 5,778 4,558 3,246 FY20 FY21 FY20 FY21 FY20 FY21 19% 2% 6% 31,852 SSA 25,850 753 770 517 549 FY20 FY21 FY20 FY21 FY20 FY21 Note: Overseas performance in c/c terms – Revenue (0.2%); EBITDA 29% ; PAT 30% 2
Slide 24: FY21 Revenue Performance by Verticals
FY21 Revenue Performance by Verticals INDIA OVERSEAS GLOBAL 3% 2% 1% 1% 1% 1% 26% 30% 32% 35% 38% 35% 71% 68% 67% 64% 61% 64% FY20 FY21 FY20 FY21 FY20 FY21 IT Mobility Services IT Mobility Services IT Mobility Services Note: Upon Note: re-grouping, Services only smartphones represents ProConnectare
Slide 25: FY21 Working Capital Days
FY21 Working Capital Days INDIA OVERSEAS GLOBAL 14 18 17 31 30 31 1 2 0 16 17 14 14 14 12 FY20 9MFY21 FY21 FY20 9MFY21 FY21 FY20 9MFY21 FY21 25 25
Slide 26: FY21 Free Cash Flow Statement
FY21 Free Cash Flow Statement ₹ in million Particulars FY20 9MFY21 FY21 Profit Before Taxation 6,922 7,433 11,281 Non-cash items 2,613 1,463 1,986 Outflow of Finance Cost 1,954 768 988 Changes in Working Capital 5,756 20,535 23,338 Direct Tax Paid (1,845) (1,369) (2,634) Net Cash Flow from Operation
Slide 27: FY21 Balance Sheet
FY21 Balance Sheet ₹ in million Particulars 31-MAR-20 31-MAR-21 Source: Networth 43,089 49,337 Net Debt 1,603 (30,480) Minority Interest 3,813 3,730 Total 48,505 22,587 Application: Fixed Assets 4,773 4,182 Goodwill 183 183 Right to Use Assets 2,303 1,771 Net Assets 41,246 16,451 Total 48,505 22,587
Slide 28: FY21 Top Vendors
FY21 Top 5 Vendors REVENUE 38% 37% OTHERS SAMSUNG 5% LENOVO 6% 6% 6% DELL EMC 8% 8% HP Inc 11% 13% APPLE 29% 33% FY20 FY21 28 28
Slide 29: Shareholding Pattern
Shareholding Pattern Others Others 11.1% 11.7% Mutual Funds Mutual Funds 12.2% 10.8% Synnex Mauritius Limited Synnex Mauritius 24.2% Limited 24.2% Affirma Affirma Capital Capital 15.8% 15.8% Foreign Foreign Institutional Institutional Investors & FPIs Investors & FPIs 36.7% 37.5% Dec-2020 Mar-2021 2
Slide 30: 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