Redington Limited · NSE:REDINGTON
Redington — Q3 FY24 Earnings Presentation
53 slides from Redington's earnings presentation, Feb 6, 2024
Slide 1: Filing 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 www. redingtongroup.com 044 4224 3
Slide 2: Earnings Presentation Q3FY24
EARNINGS PRESENTATION Q3FY24
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 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 5: 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 6: 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 7: 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 8: Q3FY24 Performance
2] Redington Q3FY24 Performance
Slide 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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 15: 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 16: 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 17: 9mFY24 Performance
2] Redington 9mFY24 Performance
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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
Slide 29: Corporate Presentation Q3FY24
CORPORATE PRESENTATION Q3FY24
Slide 30: Table Of Contents
Table Of Contents • About Redington • Shareholders, Board of Directors & Leadership team • Our Strategy and Growth Vectors • ESG & CSR • Financials • Recognitions
Slide 31: 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 32: 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 33: 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 34: 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 35: 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 36: Our Shareholders
Our Shareholders HDFC Mutual Fund Others Synnex Technology 27.4% International Corporation Fidelity Management & Research (FMR) 24.1% ICICIPru Life Insurance Franklin Templeton Investments Massachusetts Institute Of Technology Insurance Companies 3.7% Investment Management Company The Vanguard Group
Slide 37: Our Board of Directors
Our Board of Directors Independent Directors Prof. Ramachandran Keith WF Bradley B Ramaratnam Anita P Belani Retd. Professor, Corporate Ex. President, Professional Sr. Business & Human Capital Policy & Strategy Ingram Micro, Director Leader IIM, Bengaluru North America Non-Executive Directors Execut
Slide 38: Our Global Leadership Team
Our Global Leadership Team Ramesh Natarajan Viswanath Pallasena Serkan Celik Cem Borhan Deepak Puligadda Chief Executive Officer Chief Executive Officer - Chief Executive Officer - Chief Executive Officer - Chief Executive Officer - - Redington SISA Redington MEA Arena Redington Turkey Redserv Globa
Slide 39: 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 40: 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 41: 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 42: 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 43: 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 44: Changing Distribution Needs & Our Preparedness
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 45: 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 46: Our approach toward ESG
Our approach toward ESG ▪ Materiality assessment completed Our Purpose TARGETS ▪ Material topics identified Be the largest private sector catalyst in our industry to build & ▪ Targets being formalized operate sustainable supply chains ▪ Roadmap developed for progress against Our Strategic Pillars OP
Slide 47: Our approach toward CSR
Our approach toward CSR Won “Rural Development and Infrastructure Award” by Dalmia Bharat CSRBOX CSR aligned to business values & vision Project themes ➢ Logistics skills training provided to Inclusive Skills Development Focus on skill development in related 1 1500+ unemployed Youth ➢ Well rounded f
Slide 48: Performance Since Listing
FY 07 86,672 FY 08 103,699 FY 09 119,186 FY 10 131,622 FY 11 163,734 FY 12 207,799 FY 13 234,462 FY 14 272,441 FY 15 307,361 FY 16 344,198 Revenue FY 17 397,362 CAGR : 15% FY 18 416,417 FY 19 465,994 FY 20 515,138 FY 21 570,416 FY 22 627,316 ₹ in Mn FY 23 795,187 FY 07 1,985 FY 08 2,590 FY 09 3,296
Slide 49: Shareholder Value Creation
Shareholder Value Creation EPS Book Value/Share Shareholder Payout* CAGR : 24% CAGR : 15% ~36% of profits earned In ₹ In ₹ 17.8 60% 88 16.4 73 63 40% 40% 55 32% 9.7 50 44 25% 6.6 20% 6.4 6.0 FY 18 FY 19 FY 20 FY 21 FY 22 FY23 FY 18 FY 19* FY 20 FY 21 FY 22 FY23 FY 18 FY 19 FY 20 FY 21 FY 22 FY23 *In
Slide 50: 9mFY24 Performance Snapshot
9mFY24 Performance Snapshot REVENUE EBITDA PAT 16% 4% 18% 9mFY24 : Rs. 6,70,968 Mn 9mFY24 : Rs. 16,024 Mn 9mFY24 : Rs. 8,930 Mn 9mFY23 : Rs. 5,76,238 Mn 9mFY23 : Rs. 16,712 Mn 9mFY23 : Rs. 10,825 Mn WC Days ROE ROCE^ 37 Days 16.9% 21.7% FY23 : 36 days FY23 : 22.2% FY23 : 36.9% 9mFY23 : 34 days 9mFY2
Slide 51: Redington: Awards 2023
Redington : Awards 2023 MEA INDIA & SSA ▪ HP Computing Distributor of the 30 Awards 43 Awards ▪ ▪ ▪ Top Lenovo 360 Distributor Company of the Year by Outlook CXO Cloud Innovation Award f Year for UAE ▪ HPE Distributor of the Year by HPE ▪ Top Distributor Software by IBM ▪ APJ Partner of the Year by
Slide 52: MEA certifications and awards
Certified MEA COMPANY OF THE YEAR 2023 ORGANIZATION - ~ , FOR WOMEN MOST PREFERRED ‘WORKPLACE ‘CERTIFIED oY BRedington a)
Slide 53: Thank You
Thank You &Redington