Redington India in focus; shares jump 18% post June quarter nos

At 10:08 AM, the stock was trading over 15 per cent higher at Rs 108.35 on the BSE as compared to 0.44 per cent rise in the s&P BSE Sensex.
Shares of Redington India climbed over 18 per cent to Rs 111.40 on the BSE on Friday, a day after the company declared its financial results for the quarter ended June 2020 (Q1FY21). 

The company's net profit declined 19.31 per cent to Rs 88.78 crore during the quarter as against Rs 110.03 crore profit logged during the corresponding quarter of the previous fiscal. Total revenue came in at Rs 10,722 crore, down 8.2 per cent as against Rs 11,686.6 crore in the year-ago period. CLICK HERE TO READ PRESS RELEASE

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at Rs 230.1 crore, down 6 per cent YoY. 

"Redington India (Redington) reported strong Q1FY21 numbers with the beat on revenue and profit after tax (PAT) as well as improvement in working capital. Lower-than-expected revenue dip (8.4 per cent versus Street’s 25.9 per cent estimate) was aided by IT demand due to work-from-home requirements as well as demand advancement due to the proposed tax hike in Saudi Arabia," said analysts with Edelweiss Securities in a result review note.

Adding, "the company managed to maintain flat QoQ margin (Street estimate 67 bps decline) due to cost control. Overall, revenue growth challenges are much lower-than-anticipated and the company has demonstrated exemplary cost control and working capital management, which instills confidence in Redington’s ability to tide over the lockdown crisis."

The brokerage has maintained a ‘BUY’ rating on the stock with the revised target price of Rs 150 (earlier Rs 142).

For the quarter ended March 2020 (Q4FY20), the company had posted revenue of Rs 4,403.10 crore as against Rs 4,691.93 crore in Q4FY19. Net Profit, however, was at Rs 177 crore against Rs 36.16 crore in Q4FY19. READ MORE

 
At 10:08 AM, the stock was trading over 15 per cent higher at Rs 108.35 on the BSE as compared to 0.44 per cent rise in the s&P BSE Sensex. 


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