The company’s net profit jumped 76.7% year-on-year to ₹486 crore, marking ithighest-ever quarterly profit.
It reported a 34.6% year-on-year increase in revenue from operations to ₹34,922 crore, while Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 76.9% to ₹708 crore. EBITDA margin expanded to 2.03% from 1.54% a year earlier.
What’s driving the rally
Growth was led by the Singapore, India and South Asia (SISA) business, where revenue rose 63% year-on-year. Within the segment, the Mobility Solutions Group grew 88%, Technology Solutions Group expanded 57%, Software Solutions Group increased 42%, while End Point Solutions Group grew 49%.The company also reported improved capital efficiency, with global working capital days declining to 32 days from 37 days a year ago.
Its higher-margin Software Solutions Group business continued to gain traction, posting 52% global growth, while the Rest of the World (excluding Arena) business reported 16% revenue growth and an 81% increase in profit after tax, supported by cost controls and a favourable base.
Reddington’s logistics arm, ProConnect, posted its highest-ever quarterly revenue, up 38% year-on-year.
The company also said its vendor mix continued to diversify, with Apple’s contribution to revenue declining to 31% from 34% a year earlier.
Despite the strong earnings, free cash flow remained negative at ₹995 crore, compared with ₹940 crore a year ago, primarily due to higher working capital investments to support growth.
Shares of the company rose as much as 17.8% on Thursday morning, reacting to the results announced on Wednesday night, to an intraday high of ₹338.50. The stock has pared some of its gains and was trading 10.4% higher at ₹317.30 apiece as of 10:45 am. It has advanced about 20% over the last 12 months.
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