Redington expects double-digit growth, to enter new markets
India’s Redington Ltd is targeting double-digit revenue growth for the next financial year and a foray into new markets, betting on a pandemic-led push for digitising corporate and government offices, its top boss told Reuters on Friday.
Redington, which distributes products for over 290 brands, including Apple and Samsung, is looking to enter about a dozen new countries like Indonesia, Myanmar and Azerbaijan in the next couple of quarters, Managing Director Rajiv Srivastava said.
Chennai-based Redington, which operates in 38 countries, is also increasing its 4,500-odd workforce by 5% globally in about a year.
The expansion comes at a time when global economies are contending with a slowdown, and the pandemic-led demand for consumer electronics is fading out as schools and offices reopened.
Still, the drive towards digitisation by governments and businesses is a “one-way street” as offices would have to continue to spend on servers, storage and software upgrades driving revenue growth for companies like Redington, Srivastava said in the interview.
Redington earlier this month recorded its highest-ever quarterly revenue for the three months ended Dec. 31 even as its profit slipped due to higher expenses.
Srivastava said Redington, which has reported a double-digit topline growth for the last three years, would continue to be on a similar trajectory for the year ending March 2024.
Analysts, on average, expect revenue for the period to climb nearly 11% to 862.74 billion rupees ($10.42 billion), according to IBES data from Refinitiv.
The Redington MD further said that new gadget launches would now reach Indian consumers faster, given the recent electronics manufacturing boom coming on the back of global businesses looking to limit their reliance on China.
The company’s shares, which climbed nearly 25% in 2022, closed marginally lower at 179.85 rupees on Friday. Reuters
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