Redington India : Strong Performance history, re-rating candidate

Q1FY23 Result - Highlights

1. To integrate all logistics entities as One ProConnect, the Automated Distribution
   Centres in Chennai and Kolkata will be transferred to ProConnect Supply Chain
   Solutions Limited for 90 Crs. This business unit generated 4.25 Crs in income during FY22.
2. Even though on a standalone basis, the finance costs went up substantially, on a consolidated basis it has only increased slightly. Similar to the standalone entity, the group’s employee benefit expenses have gone up but other expenses have come down.
3. SISA segment is more efficient (better ROA, ROCE -50% and ROE - 24%) than ROW (ROCE - 36% and ROE -19%).
4. During the quarter, Redserv Global Solutions Limited (“RGS”) acquired Redserv Business Solutions Private Limited (“RBS”). Prior to this transaction, RBS was a wholly owned subsidiary of Redington Gulf FZE (“RGF”).
5. Due to high WC utilisation, FCF for Q1FY23 stood at -2316.7 Crs (-13.79 % FCF margin)
6. Mobility segment’s share in the revenue pie grew YoY.
7. WC days (YoY), SISA - from 19 to 20, ROW - from 18 to 36 and Global - from 18 to 28.
8. Apple’s share in revenues grew from 28% in Q1FY22 to 31% in Q2FY23

Disclosure - Invested