Redington share price declined over 5% in early trade on Tuesday after the company said its operations in the Gulf region have been restricted due to the ongoing US–Iran war. Redington shares slipped as much as 5.08% to ₹221.05 a piece on the BSE.
Redington’s step-down subsidiary, Redington Gulf FZE stated that its operations in the Gulf region are being pursued in a restricted manner amid the prevailing geopolitical tensions.
The company cited several challenges impacting its operations, including the re-routing of shipments and the closure of major ports and airspace, which have resulted in longer transit times. It also highlighted the need for higher working capital due to increased inventory levels and customer requests for extended payment timelines. In response, the business is prioritizing capital preservation.
Additionally, Redington noted a rise in freight, insurance, and logistics costs. The situation has been further complicated by the revocation of war risk coverage by insurance providers for companies operating in the region, with the company currently evaluating alternative arrangements.
“The safety and well-being of Redington’s employees remain a top priority. The Company has implemented enhanced safety protocols and business continuity plans across affected locations and continues to operate in full compliance with all applicable international regulations, trade restrictions, and sanctions,” Redington said in a regulatory filing on March 16.
Given the dynamic nature of the situation, Redington’s senior management is actively monitoring developments and will take all appropriate actions as necessary, it added.
At this stage, the company added that it was not possible to reliably quantify the financial impact, since the same would depend on the duration and intensity of the situation.
Redington Share Price Performance
Redington share price has fallen 14% in one month and 18% in three months. The stock has declined 23% in six months, while it has remained flat in one year. Redington shares have gained 38% in three years, and have delivered multibagger returns of 160% in five years.
At 9:40 AM, Redington share price was trading 3.48% lower at ₹224.80 a piece on the BSE.
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