Redington Fuelled by growing demand for tech products

Redington has reached a significant milestone by surpassing Rs. 62,000 crores in revenue for the entire FY’22. PAT growth has been significant, increasing by 69% for the year, and the company has generated Rs 989 crores in cash flow from operations.

Revenue

Rs 627,315 mn

Since its founding in 1993, Redington has steadily climbed the value chain of distribution to become the second-largest distributor of technology and mobility in India, while solidifying its position as the top distributor in the Middle East and Africa for more than a decade. In 2022, it keeps up the focus on enhancing leadership team and resource capabilities and skill sets.

It is supporting the most effective distribution of technology and mobility products, solutions, and services from innovators around the world to all of its partners and clients.

Q3: Redington reported consolidated sales of Rs. 16,620 crores, a 2% decrease from the same quarter last year, but this can be attributed to the switch from the previous gross accounting standard to the current net accounting. India’s revenue has decreased by 7% to Rs. 7157 crores.

REDIL reported revenues of Rs 62,732 crores and a 69% increase in net profit for FY22.

According to consolidated numbers, which include India and outside, the company’s entire IT growth—which includes PCs, servers, storage, networks, and printers—is at 12%. If gross accounting was used, the overall growth rate should be 18%. These are the figures at a high level: services are up by +5%, but mobility is down by -22%.

Portfolio expansion

• Redington created an online store where its affiliates can sell their products.

• It operates a cloud platform for businesses wishing to upgrade their business processes to contemporary platforms.

• REDIL partnered with Vicarius, an Israel-based startup providing a full suite of vulnerability management tools, products. Redington adds Vicarius to its portfolio of over 245+ international brands in IT and Mobility spaces, serving 37 emerging markets.

• Druva expanded into India with REDIL to empowering channel partners and assisting companies in their digital transformation path.

• CloudQuarks, a versatile digital platform with self-service features that enables seamless onboarding of cloud products and services of choice for both partners and customers, has been introduced by Redington. The business is also making it easier to buy and use a variety of cutting-edge technology in the fields of sustainable solar energy and additive manufacturing (3D printing).

Key Wins

• Strong market position in the IT and mobility distribution sector: REDIL, along with Ingram Micro Pvt Ltd (another significant player in this sector), have a strong market position in the domestic IT distribution sector in India.

• REDIL continues to be a prominent distributor of cellphones in the mobility industry as well. It has partnerships with well-known companies including Apple, Google, and Samsung.

• The company’s capacity to quickly expand its vendor base, its diversified product profile, excellent distribution infrastructure, and firmly established connections with the channel partners all contribute to its market leadership in both of its business categories. Because of the strong demand for IT goods and services, it has been able to increase its revenues.

Ramesh Natarajan, CEO

By Aanchal Ghatak

aanchalg@cybermedia.co.in