Q3 2025 Redington Ltd Earnings Call Transcript
Key Points
- Redington Ltd (BOM:532805) reported its highest quarterly revenue and profit, with revenue at INR 26,764 crores and profit at INR 400 crores, marking a 14% revenue growth and 17% profit growth.
- The company achieved a significant improvement in working capital management, reducing it to 33 days, which contributed to lower interest costs.
- Strong geographical performance was noted, with UAE revenue growth at 26% and India at 18%, alongside a recovery in Saudi Arabia and continued momentum in Africa.
- The Cloud Business Unit was a standout performer with a 42% top-line growth, driven by success in the hyperscaler business and subscription software.
- Redington Ltd (BOM:532805) maintained a robust ROCE of 27%, indicating efficient capital utilization and profitability.
- The company faced challenges in Turkey due to high inflation and interest rates, impacting market demand and financial performance.
- Factoring costs increased significantly from INR 33 crores to INR 71 crores, primarily due to large deals with higher credit bases.
- Gross margins showed a decline, attributed to normalization and increased competition, with a drop from 5.7% to 5.2% over nine months.
- The renewable energy segment experienced a slowdown in growth due to regulatory changes and adjustments in business models.
- There is a potential for increased tax rates in the future due to the implementation of the Global Minimum Tax, which could impact profitability.
Ladies and gentlemen, good day, and welcome to Redington Limited Q3 and FY '25 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. (Operator Instructions). Please note that this conference is being recorded.
I now hand the conference over to Mr. V.S. Hariharan, Group CEO. Thank you, and over to you, Mr. Hariharan.
Thank you. Good morning, everyone. I'm really happy to share with you our Q3 '25 results. This has been the highest quarter revenue recorded at INR 26,764 crores and the highest quarterly profit ever at INR 400 crores. Our revenues grew at 14% with profit growing at 17% faster than the revenues. Overall, PAT percentage was at 1.5%. It has been a continuing story of profitable growth over the quarters with growth coming back
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