Redington (REDINGTON) Q3 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 26,764 crores and highest-ever quarterly profit of INR 400 crores, with revenue up 14% and profit up 17% year-over-year.

• Global revenue (excluding Arena) up 16% YoY; EBITDA up 17%, PAT up 19%.

• Profitable growth driven by strong execution across all business segments and geographies, notably UAE (26% growth) and India (18% growth).

• SISA segment revenue up 17% YoY, EBITDA up 19%, PAT up 36%.

• Cloud business unit led with 42% top-line growth; Technology Solutions Group grew 28%, Mobility Solutions Group 9%, and Endpoint Solutions Group 6%.

Financial highlights

• Operating expenses grew only 1%, significantly slower than revenue growth.

• Q3FY25 global revenue reached INR 26,764 Cr, up 14% YoY; EBITDA at INR 651 Cr, up 16%; PAT at INR 400 Cr, up 17%.

• Working capital days improved to 33 in Q3FY25 from 36 YoY.

• Free cash flow was negative due to working capital normalization, with Q3FY25 at negative INR 2,046 Cr and 9MFY25 at negative INR 221 Cr.

• Gross margin for the nine months was 5.2%, down from 5.7% YoY, mainly due to normalization, large deals, and increased competition.

Outlook and guidance

• Optimistic on Q4 due to fiscal year-end spending in India and backlog of deals, but cautious about potential demand slowness in Middle East and Turkey due to festive season.

• Confident in maintaining EBITDA margin between 2.3%-2.5% for the next year.

• Bullish on all business verticals for CY25, expecting continued growth in cloud, technology solutions, and mobility, with PC segment expected to pick up in the second half.

• Forward-looking statements highlight risks from macroeconomic trends, currency fluctuations, regulatory changes, and competitive pressures.