Shares of Redington India climbed over 18 per cent to Rs 111.40 on the BSE on Friday, a day after the company declared its financial results for the quarter ended June 2020 (Q1FY21).
The company’s net profit declined 19.31 per cent to Rs 88.78 crore during the quarter as against Rs 110.03 crore profit logged during the corresponding quarter of the previous fiscal. Total revenue came in at Rs 10,722 crore, down 8.2 per cent as against Rs 11,686.6 crore in the year-ago period. CLICK HERE TO READ PRESS RELEASE
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at Rs 230.1 crore, down 6 per cent YoY.
For the quarter ended March 2020 (Q4FY20), the company had posted revenue of Rs 4,403.10 crore as against Rs 4,691.93 crore in Q4FY19. Net Profit, however, was at Rs 177 crore against Rs 36.16 crore in Q4FY19. READ MORE
“We believe Redington’s execution in spite of the lockdown-induced challenges is commendable. Although ProConnect profitability needs to be closely tracked, the overall business is well managed. Considering the company’s improving return on capital employed (RoCE), its valuation at 6.1x FY21E earnings per share (EPS) is attractive. We maintain “BUY/SO” with a revised target price of Rs 142,” analysts at Edelweiss Securities had said in a note on June 12.
At 10:08 AM, the stock was trading over 15 per cent higher at Rs 108.35 on the BSE as compared to 0.44 per cent rise in the s&P BSE Sensex.