Redington India

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Over the year, Redington India cashed in on op­por­tu­ni­ties in ver­ti­cals such as Tele­com and BFSI sec­tors, which went in for sig­nif­i­cant tech­nol­ogy up­grades and IT as­set re­fresh. These ver­ti­cals panned out well for the com­pany. Mean­while, Redington also saw good rev­enue gain in HPI and Acer port­fo­lios. Stor­age and Se­cu­rity con­tin­ued to of­fer growth op­por­tu­ni­ties.

There were some chal­lenges as well dur­ing the last year. The com­pany says that the in­vest­ments by en­ter­prise class cus­tomers over­all were muted and se­lec­tive. Slow mo­men­tum in SMB sec­tor also acted as a damp­ener. More­over, the PC and Print mar­ket growth re­mained a chal­lenge. Soft­ware sec­tor showed a lack of trac­tion. Liq­uid­ity and AR chal­lenges in the chan­nel eco-sys­tem were ex­tremely acute. Un­ac­cept­able level of de­faults and ex­ten­sion of credit pe­riod be­yond any rea­son­able lim­its re­sulted in sharp in­crease in work­ing cap­i­tal de­ploy­ment. The cost of do­ing busi­ness also in­creased sharply. As a re­sult, earn­ings came un­der in­creas­ing pres­sure as re­bates con­tin­ued to re­duce.

Given the chal­leng­ing mar­ket con­di­tions, how did the com­pany tided over the year? The com­pany says that it aimed at con­sol­i­dat­ing its core busi­ness to en­sure a sta­ble and firm base. And it also ac­cel­er­ated build­ing its Cloud port­fo­lio and Dig­i­tal Trans­ac­tion Plat­form in­fra­struc­ture and com­menced build­ing Cloud MSP team.

Mean­while, it also en­gaged with cus­tomers who are par­tic­i­pat­ing in the Dig­i­tal India/Smart City ini­tia­tives. More fo­cus also went on ini­ti­at­ing in­vest­ments in some new, busi­ness lines, dif­fer­ent from IT and Mo­bil­ity.

In terms of sig­nif­i­cant busi­ness high­lights for the com­pany over the last year, de­vel­op­ments like ex­e­cut­ing IT sup­plies part of a few of the ini­tial Dig­i­tal India/Smart City projects and new ini­tia­tives. For in­stance, its sta­teof-the-art Dig­i­tal trans­ac­tion plat­form was launched last year. This is cen­tral to its cloud busi­ness.

Mean­while, the Cloud MSP was put in place and ser­vice of­fer­ings through part­ners also com­menced. If one looks at SBU wise per­for­mance, the pos­i­tives are - Stor­age, Se­cu­rity, Cloud, parts of Con­sumer PC port­fo­lios, Ap­ple phones and Mac busi­ness and Dig­i­tal Print­ing So­lu­tions port­fo­lio. The per­for­mance was muted in Soft­ware & Com­mer­cial PC BUs.

New prod­ucts added on to the port­fo­lio are Aruba, ESRI, Para­met­ric, PTC, Sim­plic­ity & SAS, are amongst the vendors added to its port­fo­lio.

In terms of the out­look for FY 18, the com­pany says that one has to watch out for an im­pact of GST on rev­enue for first two-quar­ters of the fi­nan­cial year.

It is also crit­i­cal that credit hy­giene in the chan­nel is sig­nif­i­cantly im­proved as it has now started to se­ri­ously im­pact the abil­ity of all dis­trib­u­tors to invest in the busi­ness. This will ad­versely im­pact the support that it can ex­tend to its chan­nel part­ners. The com­pany is ex­pected to strongly ac­cel­er­ate the in­vest­ments and ca­pa­bil­i­ties in the cloud space to have a com­plete suite of ‘Man­aged Ser­vices’ of­fer­ings for its part­ners.

—PS NEOGI Jt COO

—EH KAS­TURI RANGAN Whole-Time Direc­tor

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