Redington

“Large deals exceeded INR3,800 crores and accounted for roughly 9% of the group's revenue.”

“It's almost all neo cloud.”

“For the current quarter, roughly about INR3,800 crores is our large deal sizes. If you eliminate everything else is BAU.”

“India continued to lead growth with the distribution business growing 67% year-on-year during the quarter, while the rest of the world excluding Arena grew 38%.”

“Levant countries outside of UAE and Saudi grew 121%. UAE grew 39% and Africa grew 35%.”

“The Middle East grew 41% despite the geopolitical uncertainty.”

“Mobility grew 40% and accounted for 34% of the consolidated revenue.”

“Revenue increased 91%, taking TSG to 20% of the consolidated mix.”

“We think this will continue because this is not just a short-term pricing phenomenon of something of constrained and components driving it, etcetera, its a CPU to GPU migration.”

“The unit volumes on the consumer side are declining. And the prices -- increased prices are giving us that revenue growth. Commercial PCs are flattish to a small growth for now.”

“two-third of our premium smartphone in India is connected with an EMI kind of a picture.”

“But it's definitely not at the same rate that we would see in the last few years that it has grown. So definitely, we're going to hit a wall somewhere.”

“So you're absolutely right when the base model launch in Q4, you will see a better unit volume kicking in”

“We also retained operating leverage revenue grew 48%, while operating expenses increased at a lower rate of 40%.”

“if we eliminate the large deal, I mean, on account of large deals. This moves up to about some 5.13%, very similar to what it was in the last year, similar in same quarter.”

“The third is very specific to Middle East, where on account of war-related situation, there are some increase in cost and primarily is on account of insurance, etcetera.”

“Definitely margins are not as interesting as normal business unit run rate margins that we have between 4.5 and 5.”

“Clearly, if you see SSG gross margin this quarter, it's higher than 6%”

“But globally, it's on -- I mean it would be about 0.6x to 0.8x. So we are quite comfortable in where we are, and this is primarily on account of the higher growth that we see in the business.”

“Strait of Hormuz is closed, and we need to find alternate routes of receiving the material. So everything has increased the TAT of doing the business and that's one of the -- I mean key reasons why inventory is on the high side.”

“Capital investment on the funded portion is almost nil. We only have a non-funded portion being utilized for the purpose of large deal.”

“But because of growth, higher growth, obviously, the quantum of working capital as well as the debt is expected to go up”

“See, the distribution business, which is working capital intensive, you tend to have normally debt equity of beyond 1:1.”

“when we see the requirement for additional capital times, we will come back to the market at the right time.”

“The levers, there are additional debt that's possible, like we spoke, there are opportunities to moderate the dividend or to raise capital.”

“So, at this point in time, we are able to manage with the debt. And the other levers, we will bring in when there is a requirement.”

“We also rolled out five AI learning centers over the last 2 quarters now in place in India, executed as part of our CSR program.”

“So it will take -- it will be a long journey, clearly. It is not going to catapult overnight.”

“Arena has a totally new management team in place who is now steering the company through.”

“Redington share of the loss this quarter was INR115 crores. This loss comprises of the business loss and a lira business transition loss and an exceptional impairment of intangibles of INR40 crores.”

“And then on top of that, we took an impairment of our intangibles. That's why it all added up. But if you look at just the business loss this quarter was much smaller.”

“It's about INR213 crores, which includes about INR67 crores in SISA and in Arena about INR135 crores.”

“That's not significant, that's not material, Aejas.”

“Across the Middle East and Africa, our teams adapted quickly to the logistics disruption, longer collection cycles and tighter liquidity.”

“We entered the second half alert to geopolitical liquidity and market risk”

“Again, I think at some point, these price increases will slacken the actual unit consumption.”

“particularly in Turkey, the general conditions, the liquidity conditions in the market is not very great.”

“And second thing is the West Asia crisis and how much of that impact would be felt in UAE, KSA, and some of GGCL.”

“Consolidated revenue for Q2 FY27 was INR43,002 crores, up 48% year-on-year.”

“Profit after tax, excluding exceptional items, rose 50% to INR581 crores.”

“Excluding Arena, this looks even better. Revenue expanded 54% and profit after tax increased 55% to INR657 crores.”

“For the first half of '27, consolidated revenue reached INR77,967 crores, a growth of 41%”

“while profit after tax, excluding exceptional items reached INR1,067 crores, growing at 61%.”