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REDINGTON (INDIA) is slightly downgraded to Slightly Positive due to a...
The independent financial analyst theScreener just slightly lowered the general evaluation of REDINGTON (INDIA) (IN), active in the Computer Services industry. As regards its fundamental valuation, the title confirms its rating of 4 out of 4 stars while its market behaviour remains unchanged and can be qualified as defensive. However, a marginally less favourable environment forces theScreener to downgrade slightly the title, which now shows an overall rating of Slightly Positive. As of the anal...
- Rohit Dokania
Redington India's Q3FY20 results (Outperformer) - Mobility powered gro...
Q3FY20 results highlights Cons. rev. grew ~17.1% yoy to ~Rs148bn (5% beat) – India/Overseas businesses grew ~20.7%/~15.1% yoy respectively, powered by Mobility. Gross margin fell ~80 bps yoy to 5.2% (IDFCe: 5.6%) due to higher Mobility sales as well as high base. As a result, gross profit growth came in at ~1.8% yoy to Rs.7.7bn (3% miss). However, one-time provision taken in ProConnect (~Rs203m) led to EBITDA (post Ind-AS 116) coming in at ~Rs3bn (+7.8% yoy; 9% miss; Margin 2.02%). Adjusting...
- Rohit Dokania
Redington India's Q2FY20 results (Outperformer) - Mobility powers reve...
Q2FY20 results highlights Cons. revenue grew ~11.1% yoy at ~Rs123bn (1% miss) – India/Overseas businesses grew ~15.3%/~8.5% yoy respectively. Gross margin fell ~13 bps yoy to 5.54% (IDFCe: 5.65%) due to REDI’s focus on lower margin/lower WC businesses (esp. Mobility). As a result, gross profit grew ~8.5% yoy to ~Rs6.8bn (3% miss). However, EBITDA at ~Rs2.47bn (+32.2% yoy) was in-line due to inventory provision write-backs taken in Q2. PBT at ~Rs1.5bn (+2.6% yoy; 8% miss) was weaker than exp...
- Rohit Dokania
Redington India's Q1FY20 results (Outperformer) - FY20E opens on a str...
Q1FY20 results highlights Cons. revenue grew ~14.3% yoy at ~Rs117bn (5% beat) – India/Overseas businesses grew ~14.5%/~14.2% yoy respectively. Gross margin fell ~40 bps yoy to 5.56% (IDFCe: 5.8%) on account of mix issue (higher mobility rev.). As a result, gross profit grew ~6.3% yoy to ~Rs6.5bn (in-line). Reported EBITDA grew ~39.5% yoy to ~Rs2.3bn, adjusted for Ind-AS 116 +ve impact, EBITDA grew ~25% yoy to ~Rs2.1bn (16% beat). The healthy beat was on account of zero receivable provisions ...
- Rohit Dokania
Management Speak: Redington India (Outperformer) - Bidding to transfor...
We attended Redington India’s (REDI) analyst meet where the company outlined its future roadmap. For the first time, REDI exposed investors to its entire senior management team. Alongside Mr. Raj Shankar (MD) and Mr. SV Krishnan (CFO), REDI was also represented by Mr. Ramesh Natarajan (Joint COO – India), Mr. E.H. Kasturi Rangan (MD – ProConnect), Mr. Rawad Ayash (SVP – Mobility/Middle East) and Mr. Serkan Celik (CEO, Arena Turkey). Following are the key takeaways: CY22E Targets: Through high...
- Rohit Dokania
Redington India's Q4FY19 results (Outperformer) - Strong end to the ye...
Q4FY19 results highlights (base adjusted for Ind-AS 115) Cons. revenue posted strong growth of 15.6% yoy at ~Rs125.8bn (4% beat) – India business grew 24% yoy to ~Rs47.4bn (9% beat), while Overseas business grew 11.1% yoy to ~Rs78.5bn (in-line). Gross margin fell ~20 bps yoy to 5.8% (IDFCe: 6.0%) on account of product mix issues. Consequently, gross profit grew ~12.0% yoy (in-line). EBITDA margin came off ~10 bps yoy to 2.03% (IDFCe: 2.13%) impacted by stock appreciation rights (SAR) related...
- Rohit Dokania
Redington India's Q3FY19 results (Outperformer) - Overseas drives Q3 p...
Q3FY19 results highlights (base adjusted for Ind-AS 115) Cons. revenue was up 11.7% yoy at ~Rs126.3bn. However, higher enterprise contribution in the India IT business (along with weak base effect) led gross margin expansion of ~70 bps yoy to 6.0% (IDFCe: 5.4%). As a result, gross profit grew 26.8% yoy to ~Rs7.5bn (9% beat) while EBITDA grew 32.1% yoy to ~Rs2.8bn (13% beat). EBITDA was supported by inventory provision write-back of ~Rs102m (0.08% of rev.). Credit loss provisions stood at 0.1...
- Rohit Dokania
Redington India's Q2FY19 results (Outperformer) - Bottomed out; earnin...
Q2FY19 results highlights (base adjusted for Ind-AS 115) Q2 was marred with certain one-offs and Turkish Lira depreciation. Cons. revenue was up 11% yoy (in-line), but gross profit grew only 5.4% yoy (in-line) due to liquidating aging inventory below cost leading to around ~20bps one-off impact on gross margins at cons. level (~55bps impact in India gross margin). Gross margin fell by 29bp yoy to 5.67% (in-line). Cons. EBITDA fell by 5.4% yoy, due to issue at gross margin level and accelerate...
- Rohit Dokania
Event update: Redington India (Outperformer) - Lira depreciation to we...
Redington India Ltd. (REDI) conducted a conference call to address the possible issues on Arena – its Turkey business after the recent sharp correction in the Turkish Lira (TRY - ~83% YTD depreciation vs USD; ~40% in August 2018). Following are the key takeaways from the call: TRY depreciation more prominent on the PAT level: REDI explained that since the tax rate imposed in Turkey (22%) is at the transaction value on the local currency level, the effective tax rate looks far higher at the US...
- Rohit Dokania
Redington India's Q1FY19 results (Outperformer) - Higher provisioning ...
Q1FY19 results highlights (base adjusted for Ind-AS) Cons. revenue came in at ~Rs102bn (+9.0% yoy; in-line when base adj. for Ind-AS 115). Gross profit grew 9.4% yoy to ~Rs6.1bn (2% beat) while margins stayed steady yoy at 6.0% (IDFCe: 5.5%). Cons. EBITDA fell by 4.7% yoy to ~Rs1.7bn (10% miss) due to higher receivable/inventory provisioning; due to adoption of Ind-AS 109 standards and incorporating ECL (estimated credit loss) methodology. REDI highlighted that as a prudent measure it has pr...
- Rohit Dokania
Redington India's Q4FY18 results (Outperformer) - India dull, Overseas...
Q4FY18 results highlights Cons. revenue came in at ~Rs113.1bn (+4.8% yoy; 4.6% miss led by rev. miss in India segment). Better traction in Enterprise revenue and weak Mobility revenue in India had a positive impact on cons. gross margins at 5.7% (+60 bps qoq; 30 bps fall yoy on a very high base; IDFCe: 5.4%). Gross Profit (true revenue for REDI) was flat yoy at ~Rs6.5bn (in-line). Cons. EBITDA declined ~0.8% yoy to ~Rs2.3bn (5% beat led by lower other expenses). EBITDA margin came in at 2.05...
- Rohit Dokania
Management Speak: Redington India (Outperformer) - India IT Enterprise...
Key takeaways of our interaction with the senior management of Redington India Ltd. (REDI): India IT enterprise business could pick up pace: India Enterprise business (high margin) slowed down during GST implementation, as clients needed time to migrate to the new compliance systems as well as due to lack of clarity on taxation issues in the new regime. Management believes India IT enterprise spending has bottomed out and a strong pick up led by private capex and government focus on initiatives...
- Rohit Dokania
Redington India's Q3FY18 results (Outperformer) - Weak India business ...
Q3FY18 results highlights Revenue came in at ~Rs117.3bn (+7.0% yoy; 3.5% miss). India business underperformed (-4.3% yoy; 12.2% miss) due to weakness in Mobility segment (down 24.6% yoy, base quarter saw strong iPhone sales, but the same was tepid this quarter) as well as sluggish IT sales (+3.2% yoy, esp on the Enterprise side). The overseas business performed marginally better than expected (+14.0% yoy; 1.8% beat). Although Turkey continues to remain weak, other geographies performed bett...
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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