Redington shares fall up to 5% as arm's operations in Gulf region disrupted amid ongoing war

Redington shares see profit booking in trade.

• Redington shares drop 5% amid Gulf region disruptions.
• Operations in Gulf restricted amid geopolitical tensions.
• Freight, insurance, and logistics costs have increased.

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Redington shares fell more than 5 percent on Tuesday after the company said operations of its arm in the Gulf region are being carried out in a restricted manner due to ongoing geopolitical tensions.

The stock declined 5.15 percent to an intraday low of Rs 221 on the National Stock Exchange (NSE). The shares have been falling for the past five trading sessions and have dropped more than 12 percent during this period.

In an exchange filing, the company said its step-down subsidiary, Redington Gulf FZE, has restricted operations in the Gulf region amid the ongoing geopolitical situation.

The company said the disruption has led to rerouting of shipments and closure of major ports and airspace, resulting in longer transit times.

It also cited higher working capital requirements due to increased inventory levels and requests from customers for delayed payments. The company said the business is prioritising capital preservation in the current environment.

Redington further said freight, insurance and logistics costs have increased. Insurance providers have also revoked war risk coverage for companies operating in the region, and alternative arrangements are being evaluated.

The company said it has implemented enhanced safety protocols and business continuity plans across affected locations and continues to operate in compliance with international regulations, trade restrictions and sanctions.

"At this stage, it is not possible to reliably quantify the financial impact, as it would depend on the duration and intensity of the situation," the company said.

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