Redington India aims for double-digit revenue growth next year
CEO Ramesh Natarajan is hopeful that the various initiatives including improvement in product mix will help the tech solutions provider to improve margins soon.
Chennai-based technology solutions provider Redington is targeting double-digit revenue growth for the next financial year (FY25). Ramesh Natarajan, CEO of the company said the company is also undertaking multiple initiatives to drive the margin higher.
"Our efforts are always to try and bring in new initiatives that will drive the margins up. If you look at our mix of products...there's been a good growth of margins on the enterprise. Mobility has been a good turnaround...there are professional services on the cloud, some part of managed services that we're slowly building up, which will help us expand the gross margins that would hopefully drive the margins up," he noted.
The distributor of Apple and Samsung gadgets in India, reported 8% year-on-year (YoY) increase in revenue for the third quarter of the current financial year (Q3FY24) at ₹23,505 crore from ₹21,674.3 crore. The revenue was up nearly 6% on a quarter-on-quarter (QoQ) basis. The revenue growth was primarily driven by SISA (Singapore, India & South Asia).
For the first nine-months of the year (9MFY24), the revenue growth was around 16%.
Natarajan highlighted that the company has been delivering 15% growth in revenue, 16% growth in its operating profits, and 18% growth in its profits after tax (PAT) over the last few years. With the various initiatives underway, he expects Redington to return to these growth rates in the future.
According to Nuvama, Redington reported a weak Q3FY24 performance. Revenue came in below its estimate of ₹25,280 crore. However, EBITDA margin was flat QoQ, at 2.2%, in line with Nuvama’s estimate.
Market capitalisation of the company is ₹15,0002.25 crore.
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