India's Redington posts higher quarterly profit on strong cloud demand (May 19)

(This May 19 story has been corrected to clarify that Redington does not distribute Samsung products in India, in paragraph 1)

(Reuters) - Redington, a distributor for Apple in India, reported an increase in adjusted quarterly profit, driven by higher demand for cloud services and automation.

The Chennai, Tamil Nadu-based company reported a profit before exceptional items and tax of 5.22 billion rupees ($61.14 million) for the fourth-quarter ended March 31, compared to 3.81 billion rupees last year.

It recorded a one-time gain worth 6.26 billion rupees from divestment of its Turkey-based unit Paynet.

Redington primarily generates revenue from the sale of smartphones, computers, and other hardware products.

However, its cloud and automation businesses saw the fastest growth on back of increased adoption of the technology.

About 50% of total IT spending globally is now cloud-related and it is projected to increase to 58% by 2027, according to research firm Gartner.

Redington's revenue from operations rose nearly 18% to 264.40 billion rupees, driven by deeper penetration in the South Asian markets and expansion in African markets.

Revenue from Singapore, India and the rest of South Asia, which account for nearly half of the company's business, increased by 25%.

($1 = 85.3730 Indian rupees)

(Reporting by Ananta Agarwal and Kashish Tandon in Bengaluru; Editing by Tasim Zahid)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Euro zone inflation rises above 3%, cementing ECB rate hike bets
• Russia, at tense point in ties with UK, says it will name new ambassador 'in due course'
• Iran's president says Tehran will reciprocate if US honours interim deal commitments