Q4 2025 Redington Ltd Earnings Call Transcript
Key Points
- Redington Ltd (BOM:532805) reported its best Q4 to date with a record quarterly revenue of INR26,510 crores and a profit of INR400 crores, marking an 18% revenue growth and 23% profit growth year-on-year.
- The company achieved strong geographical revenue growth, with India growing at 26%, UAE at 24%, and Africa maintaining an 11% growth rate.
- All business units registered good growth, with the Cloud Solutions Group leading with a 41% top-line growth, and the Technology Solutions Group growing at 28%.
- The company managed its working capital efficiently, maintaining a 34-day closing working capital, which helped in lowering interest costs.
- The divestment of Paynet resulted in proceeds of INR626 crores, which were used to repay Arena's debt, significantly reducing interest and finance costs.
- The company faces challenges with margin erosion post-COVID, with current operating profit margins expected to remain between 2.3% to 2.5%.
- The Rest of the World segment, including Arena, showed almost 0% gross margin growth, indicating challenges in reviving this unit.
- There is uncertainty due to geopolitical tensions and potential tariff changes, which could impact supply chains and pricing.
- The Arena business experienced a significant environment loss of $2.9 million in the current quarter, impacting its EBITDA margin.
- The company anticipates an increase in tax rates due to global minimum tax changes, particularly affecting operations in the UAE.
Ladies and gentlemen, good day, and welcome to Redington Limited Q4 FY25 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. Hariharan, Managing Director and Group CEO. Thank you, and over to you, Mr. Hariharan.
Thank you. Good morning, everyone. This is Hariharan. I'm really happy to share with you our Q4 '25 results. All figures and numbers that I'm going to mention are exclusive of Paynet divestment gains.
This has been our best Q4 so far with a quarterly revenue record of INR26,510 crores at a quarterly profit of INR400 crores. Our revenues for the quarter grew at 18% and profits at 23% year
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