Redington, a technology solutions provider and key iPhone distributor in India, said its step-down subsidiary Redington Gulf FZE has restricted operations to preserve working capital amid ongoing geopolitical tensions in the Gulf region.
The Chennai-based company said the move follows disruptions to logistics, including re-routing of shipments and the closure of major ports and airspace, which have increased transit times.
“Higher inventory levels and requests from customers for delayed payments have increased working capital requirements. The business is prioritising capital preservation,” the company said in an exchange filing.
Redington also flagged a rise in freight, insurance and logistics costs. Insurance providers have 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 while continuing to operate in compliance with international regulations, trade restrictions and sanctions.
Given the evolving situation, Redington said it is not yet possible to quantify the financial impact, which will depend on the duration and intensity of the disruption. The company added that it will continue to monitor developments and inform stock exchanges of any material updates.
Redington reported a 15.7% year-on-year rise in revenue to ₹30,921 crore for the December quarter, driven by 25% growth in India, 19% in the UAE, and 14% in Africa. Apple was the top most vendor contributing 33% of the revenue.