Redington Limited · NSE:REDINGTON
Redington — Q1 FY25 Earnings Presentation
40 slides from Redington's earnings presentation, Jul 31, 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@redingtongroup.com CIN: L52599TN1961PLC028758 www. redingtongroup.com Ph: 044 42
Slide 2: Earnings Presentation Q1FY25
EARNINGS PRESENTATION Q1FY25
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 Q1 Revenue Double digit growth in PAT excl. Arena • Q1FY25 – YoY growth • Global excl. Arena - Revenue grew by 1%, GM de-grew by 4%, EBITDA grew by 7% and PAT grew by 13% • SISA – Revenue grew by 6%, GM grew by 0.1%, EBITDA grew by 8% and PAT grew by 10% • ROW excl.
Slide 5: Financial Highlights
Financial Highlights SISA BUSINESS YoY Revenue grew by 6%, GM grew by 0.1%, EBITDA grew by 8% and PAT grew by 10% ROCE was at 23% and ROE at 19%. WC days stood at 36 days, reduced by 4 days on YoY basis. INDIA DISTRIBUTION • YoY Revenue grew by 7%, GM de-grew by 1%, EBITDA grew by 4% and PAT grew by
Slide 6: Financial Highlights
Financial Highlights ROW BUSINESS (Excl. Arena) Excl. Arena YoY Revenue de-grew by 4%, GM de-grew by 9%, EBITDA grew by 5% and PAT grew by 17% WC days stood at 43 days, up by 3 days from Q1FY24 PROCONNECT • YoY - Revenue grew by 9%, EBITDA grew by 21% and PAT grew by 61% • EBITDA was at 10% and PAT
Slide 7: Q1FY25 Performance
2] Redington Q1FY25 Performance
Slide 8: Q1FY25 Redington Global Excl. Arena Performance
Q1FY25 Redington Global Excl. Arena Performance REVENUE GM EBITDA PAT 1% -4% 7% 13% 1,108 19,050 19,328 1,060 452 423 274 243 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 ₹ in Cr
Slide 9: Q1FY25 Redington Global Performance
Q1FY25 Redington Global Performance REVENUE GM EBITDA PAT 0.4% -3% 12% 1% 21,335 1,248 21,251 1,209 483 424 249 246 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 ₹ in Cr
Slide 10: Q1FY25 Performance by Market
Q1FY25 Performance by Market REVENUE GM EBITDA PAT 6% 0.1% 8% 10% 9,941 10,584 552 553 264 286 SISA 148 163 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 5% 6% 37% 18% ROW 11,310 10,752 696 656 219 138 101 83 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 ₹ in Cr
Slide 11: Q1FY25 Performance by Market (Excl. Arena)
Q1FY25 Performance by Market (Excl. Arena) REVENUE GM EBITDA PAT 6% 0.1% 8% 10% 9,941 10,584 552 553 264 286 SISA 148 163 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 ROW Excl. Arena 4% 9% 5% 17% 9,108 8,745 556 507 159 167 95 111 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 ₹
Slide 12: Q1FY25 Contribution by Market
Q1FY25 Contribution by Market REVENUE GM EBITDA PAT 33% 40% 34% 50% 45% 53% 56% 54% 67% 60% 66% 50% 55% 47% 44% 46% Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 SISA ROW SISA ROW SISA ROW SISA ROW
Slide 13: Q1FY25 Working Capital Days
Q1FY25 Working Capital Days SISA ROW GLOBAL 4 3 3 9 6 43 40 40 40 40 36 34 34 33 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY24
Slide 14: Q1FY25 Top Vendors
Q1FY25 Top 5 Vendors REVENUE 39% 43% OTHERS DELL EMC LENOVO 8% 5% 6% 6% SAMSUNG 4% 6% HP Inc 11% 10% APPLE 32% 30% Q1FY24 Q1FY25
Slide 15: Q1FY25 Verticals Revenue
Q1FY25 Verticals Revenue SISA ROW GLOBAL Verticals Q1FY24 Q1FY25 YoY Q1FY24 Q1FY25 YoY Q1FY24 Q1FY25 YoY ESG 3,345 3,806 14% 3,765 3,504 -7% 7,110 7,310 3% TSG 3,165 3,021 -5% 2,652 2,559 -4% 5,817 5,581 -4% MSG 2,922 3,158 8% 4,329 3,895 -10% 7,251 7,053 -3% CSG 315 444 41% 353 455 29% 668 899 35%
Slide 16: Q1FY25 Free Cash Flow Statement
Q1FY25 Free Cash Flow Statement Particulars (₹ in Cr) Q1FY24 Q4FY24 Q1FY25 Profit Before Taxation 352 381 292 Non-cash items 28 42 41 Finance Cost 65 74 60 Changes in Working Capital (1,545) 768 (641) Direct Tax Paid (117) (128) (116) Net Cash Flow from Operations 1,217 1,137 (363) Capex 3 44 (16) O
Slide 17: Shareholding Pattern
Shareholding Pattern Others Synnex Others 26.2% Synnex Technology 26.6% Technology International International Corporation Corporation 24.1% 24.1% Insurance Insurance Companies Companies 3.7% 3.6% FPIs (Corporates) FPIs (Corporates) 33.9% 33.7% Mutual Funds Mutual Funds 12.1% 12.0% Mar-2024 Jun-2024
Slide 18: 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 19: Corporate Presentation Q1FY25
CORPORATE PRESENTATION Q1FY25
Slide 20: Table Of Contents
Table Of Contents • About Redington • Shareholders, Board of Directors & Leadership team • Our Strategy and Growth Vectors • ESG & CSR • Financials • Recognitions
Slide 21: 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 22: 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 23: 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 24: Our Presence
Our 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 25: 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 26: Our Shareholders
Our Shareholders HDFC Mutual Fund Synnex Technology Fidelity Management & Research (FMR) International Others 26.6% Corporation 24.1% ICICIPru Life Insurance Franklin Templeton Investments Insurance Massachusetts Institute Of Technology Companies 3.6% Investment Management Company The Vanguard Group
Slide 27: 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 28: 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 29: Corporate Strategy
Corporate Strategy 1 2 3 4 Sustainable Accelerate Route to market Power of 1 Profitable Core Business Growth 1 Transformation “One Redington” Maintaining leadership Faster adoption of Segmented approach that Engaging our ecosystem by co- subscription and consumption Objectives position across geogra
Slide 30: 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 SUSTAINABILITY AI CYBER SECURITY TRENDS CLOUD TECH TECH GROWTH IND: 16% (2022-28) IND: 25-35% (2024-27) IND: 13.3% (2024-29) IND: 25-30% (2022-27) CAGR % ME: 19.7% (2024
Slide 31: Biz Model Trends
Biz Model Trends SUBSCRIPTION CIRCULAR BOP WORK LOCATION MODELS ECONOMY AFFORDABILITY BUSINESS MODEL Circulate Products Products for low Products to Services Hybrid work Model TRENDS and Materials Income earners • Focusing on life-cycle • Implementing reverse • Forging partnerships to • Offering tec
Slide 32: 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 33: 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 34: 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 35: 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 36: Shareholder Value Creation
Shareholder Value Creation EPS Book Value/Share Shareholder Payout* CAGR : 20% CAGR : 14% ~40% of profits earned In ₹ In ₹ 17.8 60% 16.4 15.6 95 88 73 40% 40% 40% 63 32% 9.7 50 50 25% 6.6 6.4 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 19* FY 20 FY 21 FY 22 FY23 FY24** FY 19 FY 20 FY 21 FY 22 FY 23 FY 24
Slide 37: Q1FY25 Performance Snapshot
Q1FY25 Performance Snapshot REVENUE EBITDA PAT 0.4% 12% 1% Q1FY25 : Rs. 2,13,353 Mn Q1FY25 : Rs. 4,241 Mn Q1FY25 : Rs. 2,460 Mn Q1FY24 : Rs. 2,12,507 Mn Q1FY24 : Rs. 4,827 Mn Q1FY24 : Rs. 2,488 Mn Net Debt Equity ROE ROCE^ 0.21x 13.0% 16.1% Q1FY24 : 0.33x Q1FY24 : 14.4% Q1FY24 : 19.4% WC Components
Slide 38: Redington Awards
Redington Awards FY25 Q1 MEA INDIA & SSA 11 AWARDS 12 AWARDS ▪ Middle East and CIS Top Distributor of 2023 – ▪ India's Top Companies 2024 by LinkedIn Redington Saudi Arabia by Veeam ▪ AMD Achievers Club- Best T1 distributors ▪ Best Distributor 2023 – Kuwait by Huawei ▪ HPE Aruba Distributor of the Y
Slide 39: Recognitions
GRedington Linked ff} BD TOP COMPANIES India TWO MORE FEATHERS \ IN OUR CAP! Mn z 2 Redington Gets Recognised in The AMD Achievers Club Bost TDistributors Lg Technology Oriented Value-added Distributor SCN COMPUTE HPC & Al ARUBA vistributor istribut tributor ; Distribut uheNiees UN 2023 Partner of t
Slide 40: Thank You
Thank You &Redington