IT products seller Redington reported a 1% drop in first-quarter profit on Wednesday as consumers cut back on spending, hurting demand for appliances.
The Apple and Samsung device seller’s net profit fell 1 percent to 2.46 billion rupees ($29.8 million) for the first quarter ended June 30, from 2.49 billion rupees a year ago.
The rest of Redington’s global business, which operates in 31 countries including Rwanda, Oman and Turkey, and contributes almost 50% of its revenue, is being under pressure due to currency fluctuations and ongoing tensions in the African, Nigerian and Egyptian markets.
Income from operations saw a moderate growth of 0.5% to Rs 212.82 billion, but was led by the ROW segment.
The company also operates through the Singapore, India and South Asia (SISA) division.
Its technology solutions division, which provides networking, security and software services, saw declines of 5% and 4% in its SISA and ROW segments, respectively.
Redington’s earnings before interest, taxes, depreciation and amortization (EBITDA) fell to 12% from 16% the previous year.
Redington shares closed down 1.1% pre-results, after results. ($1 = 83.6590 Indian rupees) (Reporting by Ashna Teresa Britto in Bengaluru)
2024-07-31 15:11:30
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