Redington Share Price Hits Fresh 52-Week High: Key Factors Behind the Surge

Redington Ltd, a leading distributor and provider of supply chain management solutions for IT and consumer products, saw its share price reach a fresh 52-week high of ₹246.80 on the National Stock Exchange (NSE) on February 13, 2025. At 1:46 PM, the stock was trading up by 4.09% at ₹238.41, marking a 15% gain in February so far.

Strong Financial Performance Fuels Rally

The surge in Redington’s share price follows the company’s highest-ever quarterly revenue and profit. For the latest quarter, Redington reported:

• Revenue: ₹26,764 crore (14% YoY growth)
• Net Profit: ₹400 crore (17% YoY growth)
• PAT Margin: 1.5%

This profit growth outpaced revenue expansion, demonstrating improved operational efficiency. The company’s performance was driven by strong execution across business segments and geographies.

Geographical and Business Segment Highlights

From a regional perspective, the company’s revenue growth was led by:

• UAE: 26% growth
• India: 18% growth
• Saudi Arabia: Showing signs of profitable growth recovery
• Africa: Continuing its growth momentum over multiple quarters

Among business verticals, Cloud services emerged as the top performer, achieving a remarkable 42% growth. This was fuelled by continued success in the Hyperscaler business and subscription-based software services.

Optimistic Outlook for Q4

Management remains optimistic about Q4, citing multiple factors that could drive further growth:

• Fiscal year-end budget spending by corporates and the government
• The backlog of deals carried over from Q3
• Continued momentum in Cloud and Technology Solutions Group
• Favourable growth trends in AI and digital transformation

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