Redington Ltd, a leading distributor and provider of supply chain management solutions for IT and consumer products, saw its share price reach a fresh 52-week high of ₹246.80 on the National Stock Exchange (NSE) on February 13, 2025. At 1:46 PM, the stock was trading up by 4.09% at ₹238.41, marking a 15% gain in February so far.
Strong Financial Performance Fuels Rally
The surge in Redington’s share price follows the company’s highest-ever quarterly revenue and profit. For the latest quarter, Redington reported:
- Revenue: ₹26,764 crore (14% YoY growth)
- Net Profit: ₹400 crore (17% YoY growth)
- PAT Margin: 1.5%
This profit growth outpaced revenue expansion, demonstrating improved operational efficiency. The company’s performance was driven by strong execution across business segments and geographies.
Geographical and Business Segment Highlights
From a regional perspective, the company’s revenue growth was led by:
- UAE: 26% growth
- India: 18% growth
- Saudi Arabia: Showing signs of profitable growth recovery
- Africa: Continuing its growth momentum over multiple quarters
Among business verticals, Cloud services emerged as the top performer, achieving a remarkable 42% growth. This was fuelled by continued success in the Hyperscaler business and subscription-based software services.
Optimistic Outlook for Q4
Management remains optimistic about Q4, citing multiple factors that could drive further growth:
- Fiscal year-end budget spending by corporates and the government
- The backlog of deals carried over from Q3
- Continued momentum in Cloud and Technology Solutions Group
- Favourable growth trends in AI and digital transformation
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.