Redington Limited · NSE:REDINGTON
Redington — Q4 FY24 Earnings Presentation
52 slides from Redington's earnings presentation, May 15, 2024
Slide 1: Exchange filing cover letter
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@redington.co.in CIN: L52599TN1961PLC028758 www. redingtongroup.com Ph: 044 28460
Slide 2: Earnings Presentation Q4FY24
EARNINGS PRESENTATION Q4FY24
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 Redington History FY24 Revenue more than > $10bn ₹ 89,610 cr. 13% YoY Revenue PAT H1 FY24 49% H1 FY24 H2 FY24 H2 FY24 45% 51% 55%
Slide 5: Financial Highlights
Financial Highlights YoY growth in absolute PAT and PAT as a % of Revenue 1.42% 1.36% 1.45% 1.45% Q4FY23 ↑ 5% Q4FY24 INR 310 cr. INR 326 cr. Sequential improvement in PAT% Q1FY24 Q2FY24 Q3FY24 Q4FY24 1.17% 1.36% 1.45% 1.45%
Slide 6: Financial Highlights
Financial Highlights “Highest ever Quarter Revenue” • Q4FY24 – On a Global basis, Revenue grew by 3%, GM grew by 3%, EBITDA degrew by 9% and PAT grew by 5% • SISA – Revenue grew by 8%, GM degrew by 0.2%, EBITDA grew by 25% and PAT grew by 28% • ROW – Revenue degrew by 2%, GM grew by 4%, EBITDA degre
Slide 7: Financial Highlights: SISA Business
Financial Highlights SISA BUSINESS FY24 Revenue grew by 15%, GM grew by 10%, EBITDA grew by 17% and PAT grew by 8% ROCE was at 25% and ROE at 20% for FY24 FY24 WC days stood at 34 days, reduction seen both on yoy and sequential basis. India Distribution • Strong double digit Revenue growth trend con
Slide 8: Financial Highlights: ROW Business
Financial Highlights ROW BUSINESS FY24 Revenue grew by 11%, GM grew by 8%, EBITDA degrew by 23% and PAT degrew by 28% ROCE was at 20% and ROE at 14% for FY24 FY24 WC days stood at 34 days, reduction by 3 days on a yoy basis and remained flat on sequentially Arena Revenue in FY24 grew by 13% YoY
Slide 9: Q4FY24 Performance
2] Redington Q4FY24 Performance
Slide 10: Q4FY24 Redington Global Performance
Q4FY24 Redington Global Performance REVENUE GM EBITDA PAT 3% 3% 9% 5% 22,513 1,344 590 21,895 1,311 539 310 326 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 ₹ in Cr
Slide 11: Q4FY24 Performance by Market
Q4FY24 Performance by Market REVENUE GM EBITDA PAT 8% 0.2% 25% 28% 9,981 10,810 540 539 307 246 171 SISA 134 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 2% 4% 33% 12% 11,703 ROW 11,914 772 806 344 176 155 231 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 ₹ in Cr
Slide 12: Q4FY24 Contribution by Market
Q4FY24 Contribution by Market REVENUE GM EBITDA PAT 43% 48% 54% 52% 59% 60% 58% 57% 57% 52% 46% 48% 41% 40% 42% 43% Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 SISA ROW SISA ROW SISA ROW SISA ROW
Slide 13: Q4FY24 Working Capital Days
Q4FY24 Working Capital Days SISA ROW GLOBAL 1 2 5 3 38 36 33 33 33 34 34 32 34 Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24
Slide 14: Q4FY24 Top Vendors
Q4FY24 Top 5 Vendors REVENUE 39% 40% OTHERS SAMSUNG 5% 5% LENOVO 5% 5% DELL EMC 7% 6% HP Inc 12% 12% APPLE 32% 32% Q4FY23 Q4FY24
Slide 15: Q4FY24 Verticals Revenue
Q4FY24 Verticals Revenue SISA ROW GLOBAL Verticals Q4FY23 Q4FY24 YoY Q4FY23 Q4FY24 YoY Q4FY23 Q4FY24 YoY ESG 3,056 3,371 10% 3,647 3,874 6% 6,703 7,244 8% TSG 3,297 3,489 6% 2,710 2,372 -12% 6,008 5,861 -2% MSG 3,061 3,245 6% 4,867 4,644 -5% 7,928 7,889 0% CSG 285 378 33% 401 506 26% 686 884 29% Ren
Slide 16: Q4FY24 Free Cash Flow Statement
Q4FY24 Free Cash Flow Statement Particulars (₹ in Cr) Q4FY23 Q3FY24 Q4FY24 Profit Before Taxation 455 434 381 Non-cash items 57 45 42 Finance Cost 70 53 74 Changes in Working Capital (447) (610) 768 Direct Tax Paid (106) (105) (128) Net Cash Flow from Operations 30 (183) 1,137 Capex (86) (56) 44 Out
Slide 17: FY24 Performance
2] Redington FY24 Performance
Slide 18: FY24 Redington Global Performance
FY24 Redington Global Performance REVENUE GM EBITDA PAT 13% 9% 5% 12% 89,610 5,329 79,519 2,261 1,393 4,886 2,141 1,219 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 ₹ in Cr
Slide 19: FY24 Performance by Market
FY24 Performance by Market REVENUE GM EBITDA PAT 15% 10% 17% 8% 42,404 2,223 36,960 2,021 1,159 SISA 990 600 649 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 11% 8% 23% 28% 47,206 3,106 ROW 42,559 2,865 1,270 982 792 570 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 ₹ in Cr
Slide 20: FY24 Contribution by Market
FY24 Contribution by Market REVENUE GM EBITDA PAT 46% 47% 54% 53% 59% 58% 56% 57% 54% 53% 46% 47% 41% 42% 44% 43% FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 SISA ROW SISA ROW SISA ROW SISA ROW
Slide 21: FY24 Working Capital Days
FY24 Working Capital Days SISA ROW GLOBAL 2 3 2 7 3 41 36 37 36 37 34 34 34 34 FY23 9mFY24 FY24 FY23 9mFY24 FY24 FY23 9mFY24 FY24
Slide 22: Working capital trend
Working capital trend GLOBAL Pre-Covid Covid Post-Covid 41 44 37 36 34 31 14 14 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 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.
Slide 23: FY24 Top Vendors
FY24 Top 5 Vendors REVENUE 37% 41% OTHERS SAMSUNG 6% LENOVO 5% 7% 6% DELL EMC 8% 7% HP Inc 12% 11% APPLE 29% 30% FY23 FY24
Slide 24: FY24 Verticals Revenue
FY24 Verticals Revenue SISA ROW GLOBAL Verticals FY23 FY24 YoY FY23 FY24 YoY FY23 FY24 YoY ESG 13,936 13,443 -4% 14,658 16,346 12% 28,594 29,788 4% TSG 11,861 13,408 13% 9,359 10,117 8% 21,220 23,525 11% MSG 9,225 13,179 43% 16,255 18,079 11% 25,480 31,258 23% CSG 980 1,374 40% 1,202 1,589 32% 2,182
Slide 25: FY24 Free Cash Flow Statement
FY24 Free Cash Flow Statement Particulars (₹ in Cr) FY23 9mFY24 FY24 Profit Before Taxation 1,833 1,194 1,575 Non-cash items 189 125 167 Finance Cost 215 200 274 Changes in Working Capital (5,153) (1,340) (572) Direct Tax Paid (335) (331) (459) Net Cash Flow from Operations (3,251) (152) 985 Capex (
Slide 26: Shareholding Pattern
Shareholding Pattern Others Others 27.4% Synnex 26.2% Synnex Technology Technology International International Corporation Corporation 24.1% 24.1% Insurance Insurance Companies Companies 3.7% 3.7% FPIs FPIs (Corporates) (Corporates) 32.8% Mutual Funds 33.9% Mutual Funds 12.1% 11.9% Dec-2023 Mar-2024
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
Slide 28: Corporate Presentation Q4FY24
CORPORATE PRESENTATION Q4FY24
Slide 29: Table Of Contents
Table Of Contents • About Redington • Shareholders, Board of Directors & Leadership team • Our Strategy and Growth Vectors • ESG & CSR • Financials • Recognitions
Slide 30: 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 31: About Redington
Products , Service & Solutions Company • An Emerging Markets Multinational with presence across 40 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 32: 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 33: Our Presence
Our Our Presence Presence Enviable “In country” presence in 31 countries and serving 40 markets No.1 or No.2 position across all markets “High potential” markets Presence across product categories Portfolio of Marquee brands
Slide 34: 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 35: Our Shareholders
Our Shareholders HDFC Mutual Fund Others Synnex Fidelity Management & Research (FMR) 26.2% Technology International Corporation ICICIPru Life Insurance 24.1% Franklin Templeton Investments Insurance Massachusetts Institute Of Technology Companies 3.7% Investment Management Company FPIs The Vanguard
Slide 36: Our Board of Directors
Our Board of Directors Non-Executive Directors Executive Director Chairperson Prof. Ramachandran Tu, Shu-Chyuan Chen, Yi-Ju Retd. Professor, Corporate VP, Group Business Vice Director, Finance Policy & Strategy Strategy & Planning & Mgmt IIM, Bengaluru Development Synnex Tech, Taiwan Synnex Tech, Ta
Slide 37: 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 38: 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 39: 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 40: Key Technology Trends
Key Technology Trends In 2024: Global IT spend growth at 6.8%, India $138.6Bn at 11.1% and MENA $183.4Bn at 6.4% 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.) MET
Slide 41: 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 42: 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 43: Redington's 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 44: 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 45: 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 46: 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 47: 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 FY 17 3,97,362 Revenue FY 18 4,16,417 CAGR : 15% FY 19 4,65,994 FY 20 5,15,138 FY 21 5,70,416 FY 22 6,27,316 FY 23 7,95,187 ₹ in Mn FY 24 8,96,095 FY 07
Slide 48: Shareholder Value Creation
Shareholder Value Creation EPS Book Value/Share Shareholder Payout* CAGR : 20% CAGR : 14% ~36% of profits earned In ₹ In ₹ 17.8 60% 16.4 15.6 95 88 73 40% 40% 63 32% 9.7 50 50 25% 6.6 20% 6.4 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 18 FY 19* FY 20 FY 21 FY 22 FY23 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24
Slide 49: FY24 Performance Snapshot
FY24 Performance Snapshot REVENUE EBITDA PAT 13% 5% 12% FY24 : Rs. 896,095 Mn FY24 : Rs. 21,410 Mn FY24 : Rs. 12,186 Mn FY23 : Rs. 795,187 Mn FY23 : Rs. 22,607 Mn FY23 : Rs. 13,926 Mn WC Days ROE ROCE^ 34 Days 17.0% 18.7% FY23 : 36 days FY23 : 22.1% FY23 : 24.7% WC Components Inventory Charge % of S
Slide 50: Redington: FY24 Awards
Redington: FY24 Awards MEA 34 Awards 51 Awards INDIA & SSA ▪ Top Lenovo 360 Distributor ▪ Best Distributor – Broadline Award ▪ LinkedIn India's Top 25 Companies ▪ Company of the Year by Outlook (Channel Summit MENA) ▪ AMD Achievers Club- Best T1 ▪ CXO Cloud Innovation Award f ▪ Broadline Distributor
Slide 51: Awards and recognitions
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Slide 52: Thank You
Thank You &Redington