Apple distributor Redington Q2 profit up as India sales of phones rise

(This Nov. 2 story has been corrected to fix the company descriptor from Apple reseller to Apple distributor in headline and paragraph 3)

BENGALURU (Reuters) - India's biggest Apple and IT products distributor Redington Ltd on Thursday reported a 26% jump in September quarter profit on the back of buoyant domestic demand for phones, laptops and software.

Consolidated profit for the three months ended Sept. 30 climbed to 3.87 billion rupees ($46.76 million) from 3.07 billion rupees a year ago, the company said in an exchange filing.

The iPhone distributor's quarterly revenue rose to 190.51 billion rupees from 152.87 billion rupees a year ago, per the filing. Apple, its single largest vendor, accounted for 27% of the revenue.

India distribution business continued to post double digit growth, Redington said. The company also caters to Singapore, Turkey, the Middle East and the African continent. Meanwhile, the share of revenue from mobility devices rose to 25% from 23% a year ago.

The pandemic benefited companies like Redington, which sells everything from smartphones to personal computers and software to consumers and businesses across 38 countries, as it led to spike in demand with most enterprises embracing work from home.

Earnings before interest, taxes, depreciation and amortization (EBITDA), or core earnings, grew nearly 23% to 5.62 billion rupees, the company said in an investor presentation.

Redington shares rose as much as 11.2% to 152.70 rupees after the earnings.

($1 = 82.7600 Indian rupees)

 

(Reporting by Nandan Mandayam in Bengaluru; Editing by Dhanya Ann Thoppil)