CHENNAI (Reuters) – Indian IT products distributor Redington Ltd reported a 26% increase in quarterly revenue on Tuesday, boosted by demand for laptops and mobile phones, and as government departments and businesses spent more on servers, storage and software upgrades.
A pandemic-led drive towards digitisation by governments and businesses is a “one-way street,” Redington had said earlier this year, as offices would have to continue to spend on technology, driving revenue growth for gadget and software providers.
Redington, which distributes products of global technology gaints like Apple Inc and Dell Technologies Inc, reported revenue from operations rose to a record 218.49 billion rupees ($2.67 billion) in the quarter ended March 31.
The company said revenue from Singapore, India and South Asia (SISA) increased 19% to 99.82 billion rupees, while that from the rest of the world, including Middle East, Turkey, Africa – its biggest segment – soared 33% to 118.76 billion rupees.
Consolidated profit attributable to shareholders, however, dropped about 11% to 3.10 billion rupees, as total expenses for the quarter jumped 27%.
Shares of Redington, which also recommended a dividend of 7.2 rupees per share on Tuesday, closed 0.6% lower before it reported results. The stock is down nearly 3% this year.
($1 = 81.7800 Indian rupees)
(Reporting by Praveen Paramasivam in Chennai)
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