BENGALURU (Reuters) – Indian IT products distributor Redington reported a 3.5% fall in second-quarter profit on Tuesday, hurt by slowdown in demand for personal computers and phones in some of its international markets.
Over the last few quarters, markets like Turkey and Africa have been sore spots for Redington, which distributes gadgets produced by Apple and Samsung, as high inflation has squeezed consumer spending.
The company’s consolidated net profit stood at 2.93 billion rupees ($34.9 million) for the three months ending Sept. 30, compared to 3.03 billion rupees a year earlier.
Revenue from its biggest verticals – personal computers and print supplies, and mobile phones – dropped 3% and 4%, respectively in the rest of the world segment which includes countries such as Turkey.
“Challenges in the Turkey business continued due to softening demand caused by tough market conditions,” V.S. Hariharan, group chief executive officer, said in a statement.
Redington has also been expanding its reach globally, driving its total expenses up by around 12% in the quarter.
Its revenue from operations also rose 12% to 248.96 billion rupees, aided by steady demand in the Indian and south Asian markets.
($1 = 84.0350 Indian rupees)
(Reporting by Praveen Paramasivam in Chennai and Nishit Navin in Bengaluru; Editing by Mrigank Dhaniwala)
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