Redington (REDINGTON) Q4 13/14 earnings summary

Executive summary

• FY14 consolidated revenue rose 15.7% YoY to ₹27,999.2 crore; net profit attributable to shareholders increased 4% to ₹336.7 crore, or 7% excluding the exceptional disposal loss.

• Revenue and profits grew across India, Middle East, Turkey, Africa and South Asia; positive operating cash flow continued for a third consecutive year.

• Strategic focus shifted toward value-added distribution, smartphones and tablets, enterprise solutions, logistics and support services.

Financial highlights

• Consolidated revenue ₹27,999.2 crore vs ₹24,210.4 crore; EBITDA ₹719.6 crore, up 5% YoY; PAT ₹336.7 crore vs ₹323.1 crore.

• Consolidated PBT ₹485.1 crore vs ₹462.4 crore; exceptional loss on sale of long-term investment was ₹9.1 crore.

• Standalone revenue ₹11,304.7 crore, up 8.1%; EBITDA ₹337.2 crore, down 1.6%; PAT ₹239.8 crore vs ₹171.4 crore, including a ₹65.8 crore exceptional gain on Easyaccess disposal.

• Consumer and Lifestyle distribution revenue grew 22%; software revenue grew significantly, while service income and IT distribution income rose 15% and 8%, respectively.

Outlook and guidance

• FY15 priorities include further investment in wireless, security and cloud value-added distribution, and development of cloud strategies as Indian demand matures.

• Continued growth expected from ProConnect as logistics demand expands with potential GST rollout and retail FDI relaxation; Kolkata ADC expected to ramp toward full capacity.

• Positive cash generation and lower gearing were seen as supporting pursuit of additional business opportunities without difficulty.