BENGALURU (Reuters) – IT products distributor Redington reported a 1% fall in its first-quarter profit on Wednesday, as consumers cut their spending, hurting demand for gadgets.
The Apple and Samsung gadgets distributor’s consolidated net profit fell 1% to 2.46 billion rupees ($29.8 million) for the first quarter ended June 30 from 2.49 billion rupees an year ago.
Redington’s operations from rest of the world (ROW) segment, which operates in 31 countries, including Rwanda, Oman and Turkey, and contributes nearly 50% to its revenue, have been under pressure as it recorded currency fluctuations and stresses that continues in African, Nigerian and Egyptian markets.
Its said revenue from operations saw muted growth at 0.5% to 212.82 billion rupees, but was dragged by its ROW segment.
The company also operates via its Singapore, India and South Asia (SISA) segment.
Its technology solutions segment, which provides networking, security and software services, saw a 5% and 4% fall in its SISA and ROW segments, respectively.
Redington’s earnings before interest, tax, depreciation and amortization (EBITDA) margin contracted to 12% from 16% an year ago.
Shares of Redington closed 1.1% lower ahead of results, after results.
($1 = 83.6590 Indian rupees)
(Reporting by Ashna Teresa Britto in Bengaluru)
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