Redington Limited · NSE:REDINGTON
Redington — Q3 FY2023 Earnings Presentation
49 slides from Redington's earnings presentation, Feb 1, 2023
Slide 1: Cover letter to stock exchanges
Registered & Corporate Office Redington Limited (Formerly Redington (India) Limited) Block3, Plathin, Redington Tower, Inner Ring Road, Saraswathy Nagar West, 4th Street, Puzhuthivakkam, Chennai -600091 Email: investors@redingtongroup.com CIN: L52599TN1961PLC028758 Ph 044 42283700 www. redingtongrou
Slide 2: Q3FY23 Earnings Presentation
Q3FY23 Earnings Presentation
Slide 3: 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 4: Financial Highlights
Financial Highlights “Highest ever Quarter Revenue & EBITDA” • Q3FY23 – On a Global basis, Revenue# grew by 31% while EBITDA grew by 14% and PAT degrew by 2% • SISA – Revenue# grew by 29%, EBITDA grew by 18% and PAT degrew by 1% • ROW – Revenue# grew by 32%, EBITDA grew by 12% and PAT degrew by 3% •
Slide 5: Financial Highlights: SISA Business
Financial Highlights SISA BUSINESS ROCE was strong at 34% and ROE at 24% for 9MFY23 9MFY23 Revenue grew by 29%, EBITDA grew by 26% and PAT grew by 18% India Distribution • Strong double digit Revenue growth trend continues • Q3FY23: Revenue grew by 28%, EBITDA grew by 13% and PAT remained flat • WC
Slide 6: Financial Highlights: ROW Business
Financial Highlights ROW BUSINESS ROCE was strong at 42% and ROE at 23% for 9MFY23 9MFY23 Revenue grew by 25%, EBITDA grew by 19% and PAT grew by 15% During the quarter, • Revenue grew by 32%, EBITDA grew by 12% and PAT degrew by 3% • WC days stood at 27 days • ROCE was at 38% and ROE at 25% • Arena
Slide 7: Q3FY23 Performance
g Redington Q3FY23 Performance
Slide 8: Q3FY23 Redington Global Performance
Q3FY23 Redington Global Performance REVENUE# EBITDA PAT 31% 14% 2% 2,17,147 6,217 5,443 3,881 3,797 1,66,198 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 # Revenue growth as per Gross a/c : 28% ₹ in mn
Slide 9: Q3FY23 Performance by Market
Q3FY23 Performance by Market REVENUE# EBITDA PAT 29% 18% 1% 98,329 2,538 76,260 2,149 SISA 1,475 1,462 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 32% 12% 3% 1,18,818 ROW 3,679 89,939 3,294 2,406 2,336 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 # Revenue growth as per Gross a/c – SISA: 26% ; ROW: 29% ₹
Slide 10: Q3FY23 Contribution by Market
Q3FY23 Contribution by Market REVENUE EBITDA PAT 54% 55% 61% 59% 62% 62% 46% 45% 41% 39% 38% 38% Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 SISA ROW SISA ROW SISA ROW
Slide 11: Q3FY23 Revenue Performance by Verticals
Q3FY23 Revenue Performance by Verticals SISA ROW GLOBAL 1% 1% 1% 1% 1% 1% 26% 27% 30% 30% 28% 29% 73% 72% 69% 69% 71% 70% Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 IT Mobility Services IT Mobility Services IT Mobility Services
Slide 12: Q3FY23 Working Capital Days
Q3FY23 Working Capital Days SISA ROW GLOBAL 27 12 18 14 5 3 35 32 30 27 27 21 15 12 8 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23
Slide 13: Q3FY23 Top Vendors
Q3FY23 Top 5 Vendors REVENUE 33% 40% OTHERS SAMSUNG 5% 6% 5% LENOVO 9% 6% DELL EMC 8% HP Inc 12% 11% APPLE 35% 30% Q3FY22 Q3FY23
Slide 14: Q3FY23 Free Cash Flow Statement
Q3FY23 Free Cash Flow Statement Particulars (₹ in mn) Q3FY22 Q2FY23 Q3FY23 Profit Before Taxation 4,867 4,708 4,942 Non-cash items 594 532 287 Finance Cost 150 407 727 Changes in Working Capital (9,359) (3,087) (15,763) Direct Tax Paid (479) (1,217) (637) Net Cash Flow from Operations (4,226) 1,343
Slide 15: Q3FY23 Performance Factsheet
Q3FY23 Performance Factsheet Global (₹ in mn) Q3FY22 Q3FY23 Working Capital Days Q3FY22 Q3FY23 Consolidated Revenue 1,66,198 2,17,147 Global 12 30 IT 71% 70% SISA 8 35 Mobility 28% 29% ROW 15 27 Services 1% 1% Consolidated EBITDA 5,443 6,217 Consolidated PAT 3,881 3,797 SISA (₹ in mn) Q3FY22 Q3FY23
Slide 16: 9MFY23 Performance
g Redington OMFY23 Performance
Slide 17: 9MFY23 Redington Global Performance
9MFY23 Redington Global Performance REVENUE# EBITDA PAT 27% 22% 16% 5,76,238 16,712 10,825 13,660 9,320 4,54,071 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 # Revenue growth as per Gross a/c : 27% ₹ in mn
Slide 18: 9MFY23 Performance by Market
9MFY23 Performance by Market REVENUE# EBITDA PAT 29% 26% 18% 2,69,788 7,446 4,668 2,09,293 5,890 3,948 SISA 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 25% 19% 15% 3,06,449 9,266 6,157 ROW 2,44,778 7,770 5,372 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 # Revenue growth as per Gross a/c – SISA: 29% ; RO
Slide 19: 9MFY23 Contribution by Market
9MFY23 Contribution by Market REVENUE EBITDA PAT 54% 53% 57% 55% 58% 57% 46% 47% 43% 45% 42% 43% 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 SISA ROW SISA ROW SISA ROW
Slide 20: 9MFY23 Revenue Performance by Verticals
9MFY23 Revenue Performance by Verticals SISA ROW GLOBAL 1% 1% 1% 1% 1% 1% 20% 23% 25% 27% 29% 31% 79% 76% 74% 72% 70% 68% 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 IT Mobility Services IT Mobility Services IT Mobility Services
Slide 21: 9MFY23 Working Capital Days
9MFY23 Working Capital Days SISA ROW GLOBAL 31 13 21 17 5 5 39 35 34 30 29 22 17 13 8 9MFY22 H1FY23 9MFY23 9MFY22 H1FY23 9MFY23 9MFY22 H1FY23 9MFY23
Slide 22: 9MFY23 Top Vendors
9MFY23 Top 5 Vendors REVENUE 36% 37% OTHERS SAMSUNG 5% 6% LENOVO 7% 7% DELL EMC 9% 8% HP Inc 13% 13% APPLE 30% 29% 9MFY22 9MFY23
Slide 23: 9MFY23 Free Cash Flow Statement
9MFY23 Free Cash Flow Statement Particulars (₹ in mn) 9MFY22 H1FY23 9MFY23 Profit Before Taxation 11,788 8,845 13,788 Non-cash items 1,476 1,033 1,316 Finance Cost 550 710 1,441 Changes in Working Capital (2,696) (30,301) (46,153) Direct Tax Paid (2,003) (1,655) (2,293) Net Cash Flow from Operations
Slide 24: 9MFY23 Performance Factsheet
9MFY23 Performance Factsheet Global 9MFY22 9MFY23 Working Capital Days 9MFY22 9MFY23 Consolidated Revenue 4,54,071 5,76,238 Global 13 34 IT 74% 72% SISA 8 39 Mobility 25% 27% ROW 17 30 Services 1% 1% Consolidated EBITDA 13,660 16,712 Consolidated PAT 9,320 10,825 SISA 9MFY22 9MFY23 ROW 9MFY22 9MFY23
Slide 25: Shareholding Pattern
Shareholding Pattern Others Others 26.3% 22.5% Synnex Synnex Mauritius Mauritius Limited Limited 24.1% 24.1% Mutual FIIs & FPIs FIIs & FPIs Funds 36.7% Mutual 37.9% 16.7% Funds 11.7% Sep-2022 Dec-2022
Slide 26: Investor Contacts
Investor Contacts M. Muthukumarasamy 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 Product’
Slide 27: Corporate Presentation Q3FY23
CORPORATE PRESENTATION Q3FY23
Slide 28: Table Of Contents
Table Of Contents • About Redington • Board of Directors and Shareholders • Our Strategy and Growth Vectors • CSR • Financials • Recognitions
Slide 29: 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 30: About Redington
Products , Service & Solutions Company • An Emerging Markets Multinational with presence across 38 markets • Distributor → entire gamut of IT products, Smartphones, Solar, etc. • Service & Solutions → Managed, Cloud, Logistics, BPM, BPO, 3D Printing services Expansive Network & Strong Relationships
Slide 31: Our Portfolio
Our Portfolio PCs, desktops, laptops, Printers, consumables Smartphones Networking – switching, Software - productivity Server and Storage – Licensing & iPads and MacBooks and accessories routing to SDN’s and Application building optimal data Subscription services strategy Enterprise security Cloud
Slide 32: Our Presence
Our Our Presence Presence Enviable “In country” presence in 30 countries and serving 38 markets No.1 or No.2 position across all markets “High potential” markets Presence across product categories Portfolio of Marquee brands
Slide 33: Our Brands & Channel Partners
Our Brands & Channel Partners CHANNEL PARTNERS Sub Large Format Retailers Distributors Retailers Multi Brand Branded Resellers Retailers Stores Corporate Value Added System Resellers Resellers Integrators Independent E-Commerce Software Players Vendors (ISVs) Vendors Banks/ FIs Channel Partners Envi
Slide 34: Our Board of Directors
Our Board of Directors Independent Directors Prof. Ramachandran V. S. Hariharan Keith WF Bradley B Ramaratnam Anita P Belani Retd. Professor, Corporate Ex. Vice President, Ex. President, Professional Sr. Business & Policy & Strategy Hewlett-Packard, Ingram Micro, Director Human Capital IIM, Bengalur
Slide 35: Our Shareholders
Our Shareholders HDFC Mutual Fund Fidelity Management & Research (FMR) Others Synnex 22.5% Mauritius Limited ICICIPru Life Insurance 24.1% Franklin Templeton Investments Massachusetts Institute Of Technology Investment Management Company Mutual Funds 16.7% FIIs & FPIs 36.7% The Vanguard Group Tata M
Slide 36: Our Strategy
Bringing innovation faster to market Cloud, 3D printing, Metaverse, Quantum Computing, AR/VR, 5G, Borderless Network, Smart Analytics, Blockchain and cyber-security… Business Model Re-invention Our • From brick & mortar to Omni-channel • From Products to Services Strategy • • Moving towards XaaS rev
Slide 37: Technology Trends in the Future
9 8 Greater Importance 7 6 Technology 5 Weighted Score 4 Trends in the 3 Future 2 Lesser Importance 1 0 Security Cloud (SaaS, AI/Machine Big Internet of Data Center DevOps Collaboration Robotic Process Blockchain Solutions IaaS, PaaS) Learning Data/Analytics Things Solutions (Containers, Solutions A
Slide 38: Key Technology Trends
Key Technology Trends In 2022 : Global ICT spend growth at 5%, India $111Bn @ 6% and MENA $170Bn @ 3%. TECHNOLOGY HYBRID CYBER DIGITAL EMERGING 5G TRENDS CLOUD SECURITY ECONOMY TECH TECH GROWTH IND: 25.0% META: 10.4 M IND: 20.0% IND: 26.0% IND: 20.2% CAGR % META: 17.2% Subs (2021 Est.) META: 7.9% ME
Slide 39: Biz Model Trends
Biz Model Trends OMNI- WORK CONSUMPTION INVESTMENT DIVERSIFICATION CHANNEL LOCATION MODELS BUSINESS MODEL Products to Physical to Online Emerging Tech M&A, Product, Hybrid work Services Geo Model Trends •Build capability to •Develop a strong end- •Innovate, invest on •Strengthen presence in •Automat
Slide 40: Cloud Trends
Cloud Trends VERTICAL- HYBRID/MULTI- BACKUP & CLOUD & SERVERLESS EMERGING SPECIFIC CLOUD DISASTER ARCHITECTURE TECH SOLUTIONS SOLUTIONS RECOVERY CLOUD Infrastructure to Data Loss to Traditional to Standalone to Private to Hybrid Trends Industry Verticals Backup/Recovery Serverless Integrated •Build
Slide 41: Redington's Preparedness for Changing Distribution Needs
12 10 Greater Importance Redington’s Preparedness 8 6 4 Changing Weighted Score 2 Distribution 0 Needs & our Preparedness Lesser Importance Note: GTDC commissioned Vation Ventures who surveyed and interviewed key constituents from distributors and their OEM vendor partners. The majority of study par
Slide 42: Our Objectives
Our Objectives • Aggressive share gain across Products, Brands & Market Markets Brand Share Acquisitions Gains • Customer choice, Omni-Channel presence • Increase Digital adoption, provide everything “As a Service” New • Lead in ESG Market Business Expansions Opportunities • Be the most admired orga
Slide 43: Key CSR initiatives
Key CSR initiatives Through its CSR initiatives, Redington played a role of catalyst for social development in the areas of Education, Health, Skill development, Environment, Disaster Response Theme Initiative Outcome • Increased water inflow and ground water Renovated & constructed: table • 4 villa
Slide 44: Performance Since Listing
FY 07 86,672 FY 08 1,03,699 FY 09 1,19,186 FY 10 1,31,622 FY 11 1,63,734 FY 12 2,07,799 FY 13 2,34,462 FY 14 2,72,441 FY 15 3,07,361 FY 16 3,44,198 Revenue CAGR : 14% FY 17 3,97,362 FY 18 4,16,417 FY 19 4,65,994 FY 20 5,15,138 FY 21 5,70,416 ₹ in Mn FY 22 6,27,316 FY 07 1,985 FY 08 2,590 FY 09 3,296
Slide 45: Shareholder Value Creation
Shareholder Value Creation EPS Book Value/Share Shareholder Payout* CAGR : 23% CAGR : 13% ~38% of profits earned In ₹ In ₹ 16.4 73 60% 63 55 50 40% 37% 9.7 44 32% 39 53% 6.6 6.4 6.0 20% 5.8 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 17 FY 18 FY 19* FY 20 FY 21 FY 22 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 *
Slide 46: 9MFY23 Performance Snapshot
9MFY23 Performance Snapshot REVENUE EBITDA PAT 27% 22% 16% 9MFY23: Rs. 5,76,238 Mn 9MFY23 : Rs. 16,712 Mn 9MFY23 : Rs. 10,825 Mn 9MFY22: Rs. 4,54,071 Mn 9MFY22 : Rs. 13,660 Mn 9MFY22 : Rs. 9,320 Mn WC Days ROE ROCE^ 34 Days 23.4% 37.9% 9MFY22 : 13 days 9MFY22 : 24.1% 9MFY22 : 68.2% ^ROCE is calculat
Slide 47: Redington Industry Recognitions
Redington Industry Recognitions 2022 2021 • Palo Alto - Best Distributor in JAPAC for PA400 initiative • IBM- Distribution- IBM Partner • Oracle - Linux & Virtualization Distributor of the year EcoSystem Summit Awards • Veeam - Distributor of the year • PTC-Partner Network Award • Cisco - Scale dist
Slide 48: Several marquee awards across geos and functions
Several marquee awards across geos and functions Redington – Most Trusted Redington – Employee Company 2022 by VARINDIA Excellence 2022 by ET Redington Gulf – Best Security Distributor of the Year by CPI Cloud Aggregator of the Year DigiGlass – Security by GEC Platform of the Year by CPI Redington –
Slide 49: Thank You
Thank You &Redington