To retain past year's growth tempo: Redington

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To retain past year's growth tempo: Redington

Redington, which is among the newer listings, reported its quarterly numbers recently. They saw net sales of about Rs 1400 crore, while net profit figures stood at about Rs 15.50 crore. R Srinivasan, Managing Director at Redington says that in the last 12 months the company saw substantial revenue growth and hopes to retain the tempo.

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Redington , which is among the newer listings, is one of the companies that reported its quarterly numbers recently. They saw net sales of about Rs 1400 crore, while the company's net profit figures stood at about Rs 15.50 crore.

R Srinivasan, Managing Director at Redington says that in the last twelve months the company saw substantial revenue growth. The company's revenues are up by about 33% on a consolidation basis, both from the Indian as well as the international perspective. So, according to him, the last 12 months has seen a very healthy growth.

Excerpts from CNBC-TV18's exclusive interview with R Srinivasan:

Q: Start off by telling us a little bit about the volume growth seen this time?

A: In the last twelve months we have had a substantial growth in our revenues. Our revenues have been up by about 33% on a consolidation basis both from the Indian as well as the international perspective. So it has been a very healthy growth in the last 12 months.

Q: Can you break up that revenue pie for us in terms of how much your five primary products contributed this time around?

A: The bulk of our business would be from the PC business, which would be followed by our peripherals and printers' business. These are the two major segments, which saw a substantial growth in the last 12 months. India contributed about 52% of our revenue, while our international business contributed about 48% of our revenues.

Q: When will the repair and services centre start contributing to your revenue?

A: Our repairs and services business has been with us for quite a number of years. The new expansion, which we are planning would start contributing towards the revenues in the next six months. Our LCD repair facility in Chennai would be operational in the next two months via which, you can start expecting revenue from second quarter onwards.

Q: One word on your margins as well and whether you have seen any uptick there and what levels do you hope to hold it at because you work on traditionally very slim margins?

A: That is correct. In fact, there has been a good increase in our gross margin percentage. Last year, it was about 4.05%, which has gone up to 4.5% in the year ended March 07. So we saw an increase in our margin percentage as well as in our net margin percentages. So, in general the year gone by has been good in terms of revenue. And in terms of absolute profit and margins too it is looking quite healthy considering the nature of our business.

Q: What kind of growth do you see in the next quarter, both in sales and profits, keeping in mind the present growth?

A: We should be able to retain the past year's growth tempo; we do not see any let up in our growth.