Embed Size (px)
Citation preview
Corporate Office
Redington [India] Limited # “ d 1 Redington House Centre Point, edington pee ee
Thiru.Vi.Ka Industrial Estate,
a Guindy, Chennai- 600032. INDIA Tel: +91 44 4224 3353 Fax : +91 44 2225 3799 CIN : L52599TN1961PLC028758 www.redingtongroup.com
August 13, 2020
The National Stock Exchange of India Limited Exchange Plaza,
Bandra-Kurla Complex,
Bandra (E), Mumbai-400 051.
Dear Sir/Madam,
Sub: Presentation to Investors/Analysts
This is further to our letter dated August 4 2020 on the Investor/Analyst call scheduled today.
Pursuant to Regulation 30(2) and 46(2)(0) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith a copy of Investor Presentation that will be shared with the Analysts/Investors.
The same shall be uploaded on our website www.redingtongroup.com
We request you to kindly take the above information on record.
Thanking you,
Very Truly Yaurs,
a“
4
M. Muthukumarasamy
Company Secretary
CC: BSE Limited
Floor 25, Phiroze Jeejeebhoy Towers
Dalal Street, Mumbai — 400 001 ,
All Correspondence to Corporate office only
Registered Office : SPL Guindy House, 95, Mount Road, Guindy, Chennai - 600 032. India. ie
REDINGTON (INDIA) LIMITEDQ1FY21 Earnings Presentation
June 2020
Disclaimer
This presentation contains “forward looking statements” including, but without limitation, statements relating to
the implementation of strategic initiatives, and other statements relating to Redington India Limited’s future
business developments and economic performance.
While these forward looking statements indicate our assessment and future expectations concerning the
development of our business, a number of risks, uncertainties and other unknown factors could cause actual
developments and results to differ materially from our expectations.
These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends,
movements in currency exchange and interest rates, competitive pressures, technological developments, changes in
the financial conditions of third parties dealing with us, legislative developments, and other key factors that could
affect our business and financial performance.
Redington India Limited undertakes no obligation to periodically revise any forward looking statements to reflect
future / likely events or circumstances.
2
Financial Highlights
3
• Q1FY21 – On a Global basis, Revenue degrew by 8% while EBITDA degrew by 6% and PAT degrew by 19%
• Global Distribution – Revenue degrew by 8%, EBITDA grew by 1% and PAT degrew by 5%
• India – Revenue degrew by 17%, EBITDA degrew by 32% and PAT degrew by 48%
• Overseas – Revenue degrew by 4%, EBITDA grew by 17% and PAT degrew by 3%
• Key Metrics
• On a Global basis, Operating expenses decline was in line with revenue decline at ~8%
• On a Global basis, Interest cost declined by ~8%
• On a Global basis, WC days for Q1FY21 is 17 days as against 44 days in Q1FY20
• On a Global basis, AR provision is at 0.07% and Inventory charge is at 0.05%
• Strong positive FCF generation of Rs. 23,324 mn for Q1FY21
• For the quarter, ROCE stood at 20.6%
• Gross Debt to Equity is at 0.44x and Net Debt to Equity is at (0.45x)
3
Financial Highlights
4
INDIA BUSINESS
• During the quarter,
• India Distribution – Revenue degrew by 16%, EBITDA degrew by 24% and PAT degrew by 25%
• While IT segment degrew by double digit, Mobility degrew by a mid single digit
• WC days stood at 12 days in Q1FY21 as against 57 days in Q1FY20
• Strong FCF generation at Rs. 11,323 mn
• Excellent cash flow generation with cash in books at Rs.14,043 mn
• ROCE is strong at 19.1%
ProConnect India (PCS)
• Though PCS degrew revenues by 30% YoY, it delivered EBITDA of Rs.47 mn but generated loss at PAT level
on account of high interest cost
Ensure India
• Ensure, the after sales support services subsidiary of Redington was divested on July 31st, 2020 to Accel
Limited
4
Financial Highlights
5
OVERSEAS BUSINESS
• During the quarter,
• Overseas Distribution – Revenue degrew by 4%, EBITDA grew by 22% and PAT grew by 5%
• IT segment registered growth of 1%
• WC days stood at 19 days in Q1FY21 as against 36 days in Q1FY20
• Strong FCF generation at Rs. 12,001 mn
• Excellent cash flow generation with cash in books in Overseas at Rs.28,756 mn
• ROCE is strong at 21.4%
Turkey Update
• During the quarter, Arena biz had registered strong double digit growth on Revenues and triple digit
growth on EBITDA, driven by Opex control
5
Connecting The Dots
Transformation from ‘Product’ to ‘Utility of Product’
6
Q4FY18 HighlightsQ1FY21 Highlights
Q1FY21 Redington Global Performance
7
₹ in million
1,101
888
Q1FY20 Q1FY21
REVENUE EBITDA PAT
1,16,866
1,07,220
Q1FY20 Q1FY21
8% 6% 19%
2,451 2,301
Q1FY20 Q1FY21
7
Q1FY21 Performance by Market
8REVENUE EBITDA
₹ in million
41,421 34,515
75,445 72,705
Q1FY20 Q1FY21
INDIA OVERSEAS
17%
4%
1,16,866
1,07,220
8%
1,147 782
1,304
1,519
Q1FY20 Q1FY21
INDIA OVERSEAS
17%
2,3012,451
6%
32% 404 211
697
677
Q1FY20 Q1FY21
INDIA OVERSEAS
PAT
1,101
8883%
48%
8
19%
Q1FY21 Contribution by Market
REVENUE EBITDA
₹ in million
35% 32%
65% 68%
Q1FY20 Q1FY21
INDIA OVERSEAS
47%34%
53%66%
Q1FY20 Q1FY21
INDIA OVERSEAS
37%24%
63%76%
Q1FY20 Q1FY21
INDIA OVERSEAS
PAT
9
Q1FY21 India Performance
EBITDA
₹ in million
1,382 996
40,039 33,519
Q1FY20 Q1FY21
SERVICES DISTRIBUTION
28%
16%
41,421
34,515
17%
212 74
935
708
Q1FY20 Q1FY21
SERVICES DISTRIBUTION
24%
782
1,147
32%
65%
68
-40
336
251
Q1FY20 Q1FY21
SERVICES DISTRIBUTION
PAT
404
21125%
-ve
10
48%
Note: Services represents ProConnect & Ensure
REVENUE
Q1FY21 Overseas Performance
EBITDA
₹ in million
7,666 7,246
67,779 65,459
Q1FY20 Q1FY21
SSA META
5%
3%
75,44572,705
146 126
1,158 1,393
Q1FY20 Q1FY21
SSA META
20%
1,519
1,304
17%
13%
104 82
593 595
Q1FY20 Q1FY21
SSA META
PAT
697 677
0.3%
21%
11
4% 3%
Note: Overseas performance in c/c terms – Revenue (11%); EBITDA 7% ; PAT (11%)
REVENUE
Q1FY21 Revenue Performance by Verticals
12
INDIA OVERSEAS
77% 75%
20% 22%
3% 3%
Q1FY20 Q1FY21
IT Mobility Services
CONSOLIDATED
Note: Upon re-grouping, only smartphones are shown under Mobility
60% 63%
38% 35%
2% 2%
Q1FY20 Q1FY21
IT Mobility Services
66% 67%
32% 31%
2% 2%
Q1FY20 Q1FY21
IT Mobility Services
12
Note: Services represents ProConnect & Ensure
Q1FY21 Working Capital Days
13
INDIA OVERSEAS GLOBAL
13
36
29
19
Q1FY20 Q4FY20 Q1FY21
10
44
30
17
Q1FY20 Q4FY20 Q1FY21
1757
33
12
Q1FY20 Q4FY20 Q1FY21
45
21
27
13
Q1FY21 Free Cash Flow Statement
14
₹ in million
Particulars Q1 FY20 Q1 FY21
Profit Before Taxation 1,469 1,305
Non-cash items 346 426
Outflow of Finance Cost 577 424
Changes in Working Capital (10,713) 22,058
Direct Taxes Paid (155) (288)
Net Cash Flow from Operations (8,476) 23,925
Capex (328) (138)
Dividend paid including DDT - -
Outflow of Finance Cost (541) (463)
Free Cashflow (9,345) 23,324
14
Q1FY21 Top 5 Vendors
15
REVENUE
29% 26%
12%11%
8%8%
5%7%
6% 5%
40% 43%
Q1FY20 Q1FY21
OTHERS
SAMSUNG
LENOVO
DELL EMC
HP Inc
APPLE
15
Q1FY21 ProConnect India
16
₹ in million
30%
61
-45
Q1FY20 Q1FY21
75%
REVENUE EBITDA PAT
• Though PCS degrew revenues by 30% YoY, it delivered EBITDA of Rs.47 mn
but generated loss at PAT level on account of high interest cost
Above figures include Mission Critical Services
16
₹ in million ₹ in million
+ve to -ve
1,150
803
Q1FY20 Q1FY21
186
47
Q1FY20 Q1FY21
Shareholding Pattern
Jun-2020
1717
Others11.9%
Synnex Mauritius Limited24.2%
Foreign Institutional
Investors & FPIs36.6%
Affirma Capital15.8%
Mutual Funds11.5%
Mar-2020
Others10.8%
Synnex Mauritius Limited24.2%
Foreign Institutional
Investors & FPIs37.6%
Affirma Capital15.8%
Mutual Funds11.6%
Connecting The Dots
Transformation from ‘Product’ to ‘Utility of Product’
18
Investor Contacts
M. Muthukumarasamy
Compliance Officer
Redington (India) Limited
SPL Guindy House, 95 Mount Road,
Guindy, Chennai 600 032
https://www.redingtongroup.com
Sowmiya M
Senior Manager – Investor Relations
CIN - L52599TN1961PLC028758
June 2020
Corporate Presentation
No.1 Technology distributor in MEA and No.2 in India
An ‘Emerging Markets Multinational’ with a multi-faceted approach of
Expanding the reach & coverage for over
210+ brands through 37,370+ partners
DISTRIBUTION SERVICES
Support Services through Ensure
Distribution of IT Consumer, IT Enterprise,
& Mobility products
An Emerging Markets player with in-
country presence
Third Party Logistics Services through
ProConnect
$7.3bn+ company with strong double digit 13 year CAGR (Revenue, EBITDA & PAT)
2
Our Mission and Values
ADAPTABILITY COLLABORATION KNOW-HOW
TRUST TRANSPARENCYOBJECTIVITY9
SIMPLICITY
“Our mission is to offer a robust technology-powered platform to
enable a seamless flow of products and services”
3
IT CONSUMER IT CONSUMER + IT ENTERPRISE + MOBILITY
Our Transformation
1993-2002 : The Emergence 2003-2011 : The Proliferation 2012-2020 : The Expansion
From a “Broadline Distributor” to a “Value Added Distributor” to a “Services & Solutions Company”
IT + MOBILITY + LOGISTICS
4
Our Presence
5
Enviable “In country” presence in
37 markets
No.1 or No.2 position across all markets
“High potential” markets
Presence across product categories
Portfolio of Marquee brands
SSA5 markets
TURKEY1 market
MIDDLE EAST8 markets
AFRICA22 markets
INDIA1 market
Our Expansion
210+ 37,370+ 4,047* 37 80+ 225+*
1 25 5 1 3 1
Present
1993
BRANDS CHANNELPARTNERS
EMPLOYEES MARKETSSALES
OFFICESWAREHOUSES
12
6*Figures does not contain the details of Ensure India which has been divested in Jul’20
Our Board Of Directors
Independent Directors
Executive Directors
Prof. RamachandranProfessor, Corporate
Policy & StrategyIIM, Bengaluru
Keith WF BradleyEx.President,
Ingram Micro, North America
V. S. HariharanEx. Vice President,Hewlett-Packard,
Singapore
Raj ShankarManaging Director
S V KrishnanWhole time Director
Non-Executive Directors
Chen, Yi-JuSenior Manager –
Finance Planning & MgmtSynnex Tech, Taiwan
Tu, Shu-ChyuanGeneral Manager
Business Development Synnex Tech, Taiwan
B RamaratnamProfessional
Director
Udai DhawanFounding Partner &
Head of India,Affirma Capital
CHAIRMAN
Anita P BelaniSr Business & Human
Capital Leader, Operating Partner (Gaja Capital)
7
Our Experienced Executive Team
Raj ShankarManaging Director
Serkan Celik, CEO, Arena,
Turkey
Jim MathewPresident,Mobility,
Africa
Ramesh NatarajanCEO, India
Distribution
J K Senapati,COO, India
Distribution
Gautam Hukku,President, Apple & Mobility Group
R VenkateshPresident, Enterprise
Business Group
Dilip SharmaCOO, ProConnect
Logistics, India
P S NeogiChief of Staff
Sriram GaneshanDirector & Chief Financial Officer,
MEA
S V KrishnanCFO & Whole Time Director
S ChidambaramSr. Vice President,
ProConnect Logistics, MEA
Jeetendra Berry,President,IT Volume, Middle East
Rawad Ayash,President,Mobility,
Middle East
Sayantan DevPresident,IT Value
Distribution
14
Aloysius FernandesPresident,
IT Volume, Africa
E H Kasturi RanganMD, ProConnect Logistics, India
8
Our Shareholders
HDFC Mutual Fund
Fidelity Management & Research (FMR)
Fidelity International
Franklin Templeton Investments
ICICIPru Life Insurance
Acacia Partners (Ruane Cunniff & Goldfarb)
Dimensional Fund Advisors
The Vanguard Group
33
9
Synnex
Mauritius
Ltd, 24.2%
Affirma
Capital, 15.8%Foreign
Institutional
Investors &
FPIs, 36.6%
Mutual
Funds, 11.5%
Others,
11.9%
Business Overview
Distribution Business
Distribution Business Model
Market Knowledge & Access
Demand Generation
Partner Recruitment & Enablement
Sales & Marketing Expertise
Supply Fulfilment
Pre & Post Sales Consulting
Nimble on Variable Cost
One stop shop
Inventory Management
Bulk breaking
Credit financing
Logistics
Order consolidation
Technical Support & Training
BRANDS CHANNEL PARTNERS
5
BRANDS DISTRIBUTOR
RETAILERS*
RESELLERS
E-COMMERCE PLAYERS
SYSTEM INTEGRATORS
SUB DISTRIBUTORS
VALUE ADDED RESELLERS
CUSTOMERS
CHANNEL PARTNERS
12*Retailers include Retailers, Large Format Retailers (LFR), Multi Brand Retail, Brand Stores
Distribution Business
BUSINESS INDIA MIDDLE EAST AFRICA TURKEY SINGAPORE SOUTH ASIA
DISTRIBUTION
Networking
Servers & Storage Security
Software
Smartphones
IT ENTERPRISE MOBILITY
13
Cloud
Licensing & Subscription
Digital Print Solutions
PCsLaptops Printers
Print Supplies
Consumer Lifestyle products
IT CONSUMER
IT Consumer Business
Digital Print Solutions
PCsLaptops Printers
Print Supplies
Consumer Lifestyle products
14
33%
39%
INDIA
OVERSEAS
*Figures as on Q1FY21#Illustrative List
IT CONSUMER’S CONTRIBUTION TO
REVENUES*
PRODUCT CATEGORIES BRANDS#
IT Enterprise Business
15
IT ENTERPRISE’S CONTRIBUTION TO REVENUES*
*Figures as on Q1FY21
BRANDS#
#Illustrative List
Networking
Servers & Storage Security
Software
PRODUCT CATEGORIES
Cloud
Licensing & Subscription 42%
25%
INDIA
OVERSEAS
Redington Cloud Business
Our Major Competencies
Unified Digital Cloud Platform
Investments in Manpower
RedingtonManaged
Cloud Solutions
Enabling channel partners to auto provision, consume, view consumption reports, subscription management and monthly billing of Cloud services
Team Strength : 84Cloud Solution Architects, Cloud Consultants, Cloud Engineers, Advanced Pre-sales, Field Sales, Digital
Marketing
End to end solutions including 24*7 support services, cloud monitoring, cloud management,
reactive & proactive services
RedingtonCloud
Academy
Offering partner training and enablement services to help partners improve their value chain
16
Our business
Redington team provides Managed Services, focussing
on SME/Mid Market clientele
Distribution
Element Services
Element
21
Down-selling of Cloud products
6000+ 2500+ 350+ 100+ Enterprise
workloads
Registered
PartnersCustomers
Cloud
Migrations
Redington Cloud Managed Solutions (RCMS)
Cloud Service Provider
24*7 Support
Assess
Solution
Provision
Migrate
Secure
Manage
Monitor
Optimize
Assessment workshopRedington and Partner works with Customer IT team to do assessment workshop and validate customer readiness for cloud
ArchitectFindings from application/Infra details via assessment, cloud solution is proposed to customers considering security and optimized cost
MigrateStep-by-Step processes of Migration in order of criticality and testing outcomes on Cloud
ManageContinuous processes with proactive monitoring to ensure the infra is ALWAYS managed & optimized with respect to utilization and new needs
FEATURES OF REDINGTON CLOUD MANAGED SOLUTIONS
17
Mobility Business
18
MOBILITY CONTRIBUTION TO REVENUES*
*Figures as on Q1FY21
BRANDS#
#Illustrative List
Smartphones
PRODUCTS
22%
INDIA
35%
OVERSEAS
Services Business
Services Business
INDIA MIDDLE EAST AFRICA
Logistics
Support Services
Divestedin Jul’20
20
• Subsidiaries of Redington India Limited
• Third Party Logistics player offering Warehousing; Transportation; Value added services
SERVICES CONTRIBUTION TO REVENUES*
3%
INDIA 25%
2%
OVERSEAS
*Figures as on Q1FY21
ProConnect India
53%
32%
15%Warehousing
Transportation
Others
25%
16%
11%11%7%
31%
Consumer Durables
IT
E-commerce
Telecom & Infra
Apparels
Others
Wholly Owned Subsidiary of Redington
Integrated Third Party Logistics partner
PAN India presence
170+ Warehouses
6.2 mn Sq.ft. in operation
225+ Customers across 12+ Industries
20,200+ Pincodes
FY20 figures
21
Revenue Contribution from Industries
Revenue Mix: Captive vs External
Revenue Contribution from Services
71% 51% 35% 21%16% 13%
29% 49% 65% 79% 84% 87%
FY15 FY16 FY17 FY18 FY19 FY20
Redington Outside Biz
FY20 figures
Risk Management
Existing Incremental New
Exis
tin
gA
dja
cen
tN
ew
India
MEA
SSA
Turkey
PRODUCTS
MA
RK
ETS
De-risking Strategy By Diversification
Our rich product portfolio consists of diversifiedBrands and diversified product categories under thesame brand
Presence in multiple markets ensures diversification of risk as well as ensuring Kaizen’s continuous improvement
Our strong and seamless partnerships and dynamicbusiness model ensure that we stay relevant in theeverchanging technological environment
Foraying into new lines of businesses, leading toincremental growth as well as diversification of risk
23
1 Brand 210+ Brands
37
Mar
kets
1 M
arke
t
Risk Measures Effect of Mitigated Risk
Inventory Risk • Stock Rotation• Price protection• Marketing Support• Prudent Provisioning
Inventory provisioning at 0.04% of Revenue
since 10 years
Receivables Risk • Collection of post dated Cheques• Performance linked pay-out only on collection• Strict internal parameters for overdues and bad debts
AR Provisioning at 0.10% of Revenue
Since 10 years
Currency Risk • Hedging all exposures• India – ~84% of purchases in rupee dominated
invoices, forward cover for the rest with premiumbecoming a part of COGS
• MEA – Currencies pegged in USD and USDdenominated transactions. Effective forward controlsand local currency borrowings
Consistent business performance despite fluctuating currencies
Inherent Risks & Mitigation Measures
Ensuring risk adjusted returns
VENDOR DISTRIBUTOR
CHANNEL PARTNER 1
CHANNEL PARTNER 2
CHANNEL PARTNER 3
CUSTOMERS
Purchases products;Inventory risk
Sells products on Credit;Receivables risk
Invoices in foreign currency;Currency risk
24
Financial Performance
Performance track record
REVENUE EBITDA PAT
*Post acquisition of Easyaccess Financial Services in FY 08 and Arena in FY 11. ^ Post sale of Easyaccess Financial Services
₹ in million
86
,67
2
1,0
3,6
99
1,1
9,1
86
1,3
1,6
22
1,6
3,7
34
2,0
7,7
99
2,3
4,4
62
2,7
2,4
41
3,0
7,3
61
3,4
4,1
98
3,9
7,3
62
4,1
6,4
17
4,6
5,9
94
5,1
5,1
38
FY
07
FY
08
*
FY
09
FY
10
FY
11
*
FY 1
2
FY
13
FY
14
^
FY
15
FY
16
FY
17
FY
18
FY
19
FY
20
1,9
85
2,5
90
3,2
96
3,6
57
4,7
17
6,3
34
6,8
42
7,1
96
7,6
19
8,1
76
8,6
62
8,5
55
9,7
06
10
,71
8
FY
07
FY 0
8*
FY
09
FY
10
FY
11
*
FY
12
FY
13
FY
14
^
FY
15
FY
16
FY
17
FY
18
FY
19
FY
20
1,0
17
1,3
61
1,5
97
1,8
43
2,2
60 2,9
27
3,2
31
3,3
66
3,8
65
4,2
35
4,6
42
4,8
16
5,0
78
5,1
52
FY
07
FY
08
*
FY
09
FY
10
FY
11
*
FY
12
FY 1
3
FY
14
^
FY
15
FY
16
FY
17
FY
18
FY
19
FY
20
CAGR 13%CAGR 14%CAGR 15%
27
Performance Since Listing
27
Achieved Rs.500 bn milestone mark in Revenues
5,15,138
FY15 FY16 FY17 FY18 FY19 FY20
Revenue
31
FY15 FY16 FY17 FY18 FY19 FY20
WC days
10,718
FY15 FY16 FY17 FY18 FY19 FY20
EBITDA
12.6%
FY15 FY16 FY17 FY18 FY19 FY20
ROE
5,152
FY15 FY16 FY17 FY18 FY19 FY20
PAT
18.1%
FY15 FY16 FY17 FY18 FY19 FY20
ROCE
0.10%
0.06%
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20
Provisions
Provision for AR-% of Sales
Inventory charge-% of Sales
15,400
FY15 FY16 FY17 FY18 FY19 FY20
Cash Flow from Operations
Performance Snapshot
9,671
FY15 FY16 FY17 FY18 FY19 FY20
Free Cash Flow
28#ROCE is calculated net of cash and on average capital employed
Annual performance track record
Particulars Q1FY21 FY20 FY19 FY18 FY17 FY16
Total Revenue 1,07,220 5,15,138 4,65,994 4,16,417 3,97,362 3,44,198
Growth YoY -8.3% 10.5% 11.9% 5.8% 15.4% 12.0%
EBITDA 2,301 1,0718 9,706 8,555 8,662 8,176
Growth YoY -6.1% 10.4% 13.5% -1.2% 5.9% 7.3%
PAT 888 5,152 5,078 4,816 4,642 4,235
Growth YoY -19.3% 1.5% 5.4% 3.7% 9.6% 9.6%
Networth 43,904 43,089 39,060 35,306 31,479 29,494
Capital Employed* 26,138 48,505 53,118 54,759 49,741 57,353
EBITDA Margins 2.1% 2.1% 2.1% 2.1% 2.2% 2.4%
PAT Margins 0.8% 1.0% 1.1% 1.2% 1.2% 1.2%
ROCE# 20.6% 18.1% 16.9% 16.1% 15.4% 15.4%
ROE 8.2% 12.6% 13.7% 14.5% 15.3% 15.6%
EPS (₹) 2.3 13.2 12.8 12.0 11.6 10.6
Book Value per share (₹)
112.4 110.3 99.8 87.7 78.2 73.2
29*Closing Capital Employed
#ROCE is calculated net of cash and on average capital employed
Consistent Focus on Capital efficiency
Value Creation 11.3% Value Creation 17.4%
ROCE vs Cost of Debt Capital
30*ROCE is calculated net of cash and on average capital employed
INDIAReturn on Rupee capital
OVERSEASReturn on Dollar Capital
15.5% 15.5% 15.8%
19.1%
6.6% 7.4% 6.9% 7.8%
FY18 FY19 FY20 Q1FY21
ROCE Cost of Debt Capital
14.5%
18.1%19.8%
21.4%
4.9% 5.5% 5.4%4.0%
FY18 FY19 FY20 Q1FY21
ROCE Cost of Debt Capital
Quarterly performance track record
31
31
Particulars Q1FY21 Q4FY20 Q3FY20 Q2FY20 Q1FY20
Total Revenue 1,07,220 1,26,773 1,47,956 1,23,543 1,16,866
Growth QoQ -15.4% -14.3% 19.8% 5.7% -7.3%
EBITDA 2,301 2,545 3,094 2,627 2,451
Growth QoQ -9.5% -17.7% 17.8% 7.2% -13.2%
PAT 888 1,192 1,559 1,301 1,101
Growth QoQ -25.5% -23.5% 19.9% 18.2% -34.9%
Networth 43,904 43,089 41,514 40,542 40,028
Capital Employed* 26,138 48,505 59,140 48,145 62,679
EBITDA Margins 2.1% 2.0% 2.1% 2.1% 2.1%
PAT Margins 0.8% 0.9% 1.1% 1.1% 0.9%
ROCE# 20.6% 16.3% 20.3% 15.5% 14.8%
ROE 8.2% 11.4% 15.2% 12.9% 11.3%
EPS (₹) 2.3 3.1 4.0 3.3 2.8
Book Value per share (₹) 112.4 110.3 106.1 103.6 102.3
*Closing Capital Employed
#ROCE is calculated net of cash and on average capital employed
Top 5 Vendors
15%22% 27% 27% 29% 26%
17%15%
16% 15% 13%11%
4%6%
8% 8% 8%8%8%
7%
4% 5% 6%7%5%
4%4% 6% 6%
5%
51% 46%41% 39% 38% 43%
FY 16 FY 17 FY 18 FY 19 FY 20 Q1FY21
APPLE HP Inc DELL EMC LENOVO SAMSUNG OTHERS
Note: Effect of Dell EMC merger is shown partly in FY17 figures and fully in FY18 figures
29
32
EPS BOOK VALUE/SHARE DIVIDEND PAYOUT
3.1
3.5
4.1
4.7
5.7
7.4
8.1
8.4
9.7
10
.6
11
.6
12
.0
12
.8
13
.2
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
16
19
26
27
32
33
40
49
58
67
79
88
10
0 1
10
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
19
%
20
%
20
% 21
%
19
%
5%
5%
11
%
20
%
20
%
37
%
20
%
25
%
32
%
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
In ₹In ₹
Note: Special dividend declared in FY17, to commemorate 10 years of listingNote: Two interim dividends totalling to Rs.4.3 declared in FY20
Value Creation for our Shareholders
33
CAGR 12% CAGR 16%Avg DPO @ ~21% of profits earned
Current year performance
Performance By Market
1,147 782
1,304
1,519
Q1FY20 Q1FY21
India Overseas
2,4512,301
17%
6%
32%
REVENUE
₹ in million
EBITDA
404 211
697
677
Q1FY20 Q1FY21
India Overseas
1,101
888
3%
19%
48%
PAT
35
41,421 34,515
75,44572,705
Q1FY20 Q1FY21
India Overseas
1,16,8661,07,220
4%
8%
17%
India Performance
212 74
935
708
Q1FY20 Q1FY21
SERVICES DISTRIBUTION
1,147
782
24%
32%
65%
REVENUE
₹ in million
EBITDA PAT
35
68
(40)
336
251
Q1FY20 Q1FY21
SERVICES DISTRIBUTION
404
211
25%
48%
-ve
Note: Services represents ProConnect & Ensure
1,382 996
40,03933,519
Q1FY20 Q1FY21
SERVICES DISTRIBUTION
41,421
34,515
16%
17%
28%
Overseas Performance
REVENUE
₹ in million
EBITDA PAT
37Note: Overseas performance in c/c terms – Revenue (11%); EBITDA 7% ; PAT (11%)
104 82
593 595
Q1FY20 Q1FY21
SSA META
697 677
0.3%
3%
21%7,666 7,246
67,779 65,459
Q1FY20 Q1FY21
SSA META
75,445 72,705
3%
4%
5%146 126
1,158 1,393
Q1FY20 Q1FY21
SSA META
1,304
1,519
20%
17%
13%
Performance By Vertical
INDIA OVERSEAS
60% 63%
38% 35%
2% 2%
Q1FY20 Q1FY21
IT Mobility Services
77% 75%
20% 22%
3% 3%
Q1FY20 Q1FY21
IT Mobility Services
GLOBAL
66% 67%
32% 31%
2% 2%
Q1FY20 Q1FY21
IT Mobility Services
27
39Note: Services represents ProConnect & Ensure
Redington Global Comp 1 Global Comp 2 Global Comp 3
5 yr Rev CAGR
5 yr Gross Profit CAGR
5 yr PAT CAGR
5 yr Avg WC days
5 yr Avg ROCE
Net Debt to Equity
1
Redington Vis-à-vis Global Peers
2
1
3
1
1
1
1
2
2
2
2
34
34
3
4
3 4
2 34
5 yr Avg ROE 1 2 34
40
4
Our Opportunities
India’s digital economy could contribute 18–23% of overall economic activity by 2025,
with more than half the potential coming from scaling up new and emerging digital
ecosystems
Source: MEITY-McKinsey report
India to attain a trillion dollar of economic value of digital economy
by 2025
India: Govt spending opportunities
42
India Opportunities
• Covid 19 impact - CIOs to invest more in Security, Collaboration, Mobility & Cloud
• Smartphone market in India is expected to expand at a CAGR of ~14.6% between FY 2018-23
• Enterprise Networking to become a $3.6 billion market by 2024
• India's public cloud market could reach $8.0 billion by 2023
• India’s overall software market is estimated to grow at a CAGR of 14.1% between 2018-2023
• IT Services market will grow at a CAGR of 8.6% between 2019-2023 to reach $14.0 billion by the end of 2023
• The Cyber security market is expected at a CAGR of 15.6% to $3.1 billion by 2022
• SMB spending on IT hardware, software, and services, including business services, is expected to reach $684.0
billion in 2021.
• India will be one of the fastest growing markets for IT spending in SMBs, growing at 7.0% CAGR from 2016-2021
• The India digital transformation market, in 2018, generated a revenue of $24.5 billion, and it is projected to
advance at a CAGR of 74.7% during the forecast period (2019–2024)
Source: Gartner, IDC, Global market Insights, PwC-Nasscom, BCG, CIO India, Qurate 43
META Opportunities
• Government ICT spending in MEA to reach $15 billion by 2023
• Consumer IT spending in META will total $43 billion in 2021, with
mobile phones contributing 80% of the value
• Enterprise spending on AI in Middle East and Africa is expected to grow
at a CAGR of 22.0% to reach $530 million in 2022
• IoT spending in the MEA region will grow 15.9% year on year in 2019
and reach $18 billion by 2023
• The Middle East and Africa cybersecurity market is predicted to expand
at a CAGR of 11.9%, and is expected to be valued at $23 billion by 2023
• Digital transformation spending in META set to top $38 billion by 2021
• The Cloud market in Middle East and Africa regions are projected to
grow 24.0% a year on average, reaching $5 billion in 2022
Source: Gartner, IDC, Research & Markets
Artificial Intelligence
USD 56.3 billion Technology opportunity by 2022
New Dates in Oct 2021 44
Redington Foundation
Foundation for CSR @ Redington (Redington Foundation), a trust formed by Redington (India)
Limited to implement various CSR activities towards the betterment of the society
44
45
45
Compliance OfficerM. MuthukumarasamyRedington (India) LimitedSPL Guindy House, 95 Mount Road,Guindy, Chennai 600 032https://www.redingtongroup.com
CIN - L52599TN1961PLC028758
Investor Contact
Sowmiya MSenior Manager – Investor [email protected]
IR Materials - https://redingtongroup.com/india/financials-and-reports/
CONTACT US
46
THANK YOU
