Redington (REDINGTON) Q4 11/12 earnings summary

Executive summary

• FY12 consolidated revenue rose 26.9% to ₹21,222.0 Cr, EBITDA increased 34.3% to ₹633.4 Cr, and PAT grew 29.5% to ₹292.7 Cr.

• Growth was supported by overseas markets, higher-margin products and operating efficiencies; overseas subsidiaries contributed 53.1% of consolidated revenue.

Financial highlights

• Consolidated PBT reached ₹450.3 Cr vs ₹351.0 Cr; standalone revenue was ₹9,871.5 Cr, up 21.2%, and standalone PAT was ₹156.8 Cr, up 22.1%.

• Consolidated EPS rose to ₹7.35 from ₹5.72; standalone EPS increased to ₹3.94 from ₹3.25.

• Consolidated finance costs increased to ₹152.0 Cr from ₹96.1 Cr, mainly reflecting higher Indian interest rates.

Outlook and guidance

• FY13 outlook was cautious; slowing vendor growth and economies, demand softness and exchange volatility could weigh on results.

• Rupee instability made foreign-exchange management difficult; commitments were hedged, but sharp depreciation could affect demand.

• Virtualization, cloud, storage, smart communications, digital lifestyle and digital printing were identified as growth opportunities.