Redington (REDINGTON) Q4 10/11 earnings summary

Executive summary

• FY11 consolidated revenue rose 26.85% YoY to ₹17,478.08 crore, EBITDA increased 28.96% to ₹471.65 crore, and net profit after minority interest grew 22.61% to ₹226 crore.

• Growth reflected stronger contributions from higher-margin products and operational efficiencies; the recommended dividend was ₹1.10 per ₹2 share, equal to 55% of face value.

Financial highlights

• Consolidated PBT increased 27.21% to ₹351 crore; PAT before minority interest was ₹264.77 crore, with minority interest of ₹38.77 crore.

• Standalone revenue grew 28.94% to ₹8,329.06 crore; PAT rose 29.14% to ₹128.44 crore and EBITDA increased 23.97% to ₹249.92 crore.

• Consolidated EPS was ₹5.72 vs ₹4.70; standalone EPS was ₹3.25 vs ₹2.54, following the share split from ₹10 to ₹2 face value.

Outlook and guidance

• FY12 priorities include tablets, smartphones across platforms, gaming content in India and the Middle East, and value business in the Middle East and Africa.

• Indian broadband growth and a forecast 10–11 million PC market in FY12 were identified as demand opportunities; expanding Tier 3/4 coverage is also a focus.

• Smartphone demand in India was projected to rise from 6 million units in FY11 to over 50 million by FY14; distribution and vendor tie-ups position the business to pursue the category.