Redington (REDINGTON) Q4 08/09 earnings summary

Executive summary

• FY09 consolidated revenue rose 16.54% YoY to ₹12,683.14 crore; profit after minority interest increased 17.34% to ₹159.66 crore despite global financial turmoil.

• Indian operations delivered 5% revenue growth and 20% PAT growth; MEA revenue increased 32% and PAT 7%.

• Growth was supported by higher-margin product mix, operational efficiencies, expansion into non-IT distribution and services, and the Investcorp investment in the overseas business.

Financial highlights

• Consolidated revenue ₹12,683.14 crore vs ₹10,883.21 crore; EBITDA ₹329.57 crore vs ₹259.04 crore; PBT ₹219.02 crore vs ₹177.06 crore.

• Consolidated PAT after minority interest was ₹159.66 crore vs ₹136.07 crore; basic EPS ₹20.50 vs ₹17.48.

• Standalone revenue was ₹6,071.64 crore vs ₹5,780.09 crore; EBITDA ₹173.87 crore vs ₹148.25 crore; PAT ₹80.69 crore vs ₹67.11 crore.

• Standalone basic and diluted EPS rose to ₹10.36 from ₹8.62; proposed dividend increased to ₹4 per share from ₹3.50.

Outlook and guidance

• FY10 expected to remain challenging; RBI credit-easing measures were expected to support demand and spending in H2 FY10.

• Growth focus includes government infrastructure, e-governance, development projects, public-sector banks and education; expansion plans target IT, non-IT and supply-chain services.

• Chennai automated distribution centre was scheduled to start in July 2009; Delhi and Dubai facilities were targeted for completion by March 2010.

• Indian domestic IT spending was projected to grow 11.4% in 2009, while industry association MAIT cautioned that conservative buying could hurt PC sales.