India's PDS Limited reports revenue of ₹5,262 cr in H1 FY23

Reported gross profit increased by 35 per cent to reach ₹867 crore in H1 FY23 compared to ₹642 crore in H1 FY22, while EBITDA increased by 62 per cent to ₹192 crore from ₹119 crore in H1 FY22. Its normalised PBT grew by 60 per cent to ₹172 crore, PAT grew by 25 per cent to ₹157 crore and basic EPS grew by 24 per cent to ₹10.03 in H1 FY23, PDS said in a media release.

As for the company’s performance in the second quarter of FY23, its revenue from operations increased by 33 per cent to ₹2,921 crore from ₹2,195 crore in Q2 FY22; reported gross profit increased by 37 per cent to ₹495 crore compared to ₹360 crore; and EBITDA increased by 41 per cent to ₹119 crore from ₹84 crore in Q2 FY22. Its normalised PBT a grew by 34 per cent to ₹105 crore, PAT increased by 70 per cent to ₹113 crore compared to ₹67 crore in Q2 FY22, and basic EPS a grew by 81 per cent to reach ₹7.19.

The sourcing segment clocked a topline of ₹5,051 crore in H1 FY23, accounting for 96 per cent of the company’s topline with a growth of 38 per cent compared to the previous year. The segment reported an EBIT of 3.3 per cent with a ROCE of 44 per cent. The company is focused on increasing its wallet share with existing customers and onboarding new customers with customised service offerings including ‘Sourcing as a Service’.

The manufacturing segment recorded growth of 40 per cent with a topline of ₹315 crore vs ₹225 crore in H1 FY22. The segment turned profitable in Q4 FY22 and continued its profitability journey with a reported PAT margin of 1.3 per cent in H1 FY23.

Speaking on the results, Pallak Seth, vice-chairman, said, “PDS is committed to cultivating and nurturing longstanding partnerships with trust and transparency. Our continued long-term relationship with key customers is indicative of the confidence they place in our capabilities as a global, ESG-compliant design-led sourcing and manufacturing platform. As economic headwinds across the globe require us to proceed with caution, it is heartening that our teams have demonstrated organic growth with services expansion with some of our key clients in the UK and European region.”

Sanjay Jain, group chief executive officer, said: “The PDS Platform is leveraging its strengths as an agile, asset-light global enterprise, to propel us into our next phase of growth. This quarter we have unlocked potential by collaborating with our marquee customers to expand our services offerings and share of wallet. We have also made strategic investments into untapped geographies and categories building on our inorganic growth. Furthermore, we also focused on leveraging our scale while optimising our resources, therefore truly fortifying the strong structure of our platform.”

PDS is committed to building a globally compliant supply chain, providing quality products and great value through its portfolio of fashion across categories across all its customer relationships. Building on this undertaking, PDS has demonstrated growth across various business lines, especially under its unique ‘Sourcing as a Service’ model. The company recently inked a deal with George @ Asda, a leading UK, and Europe-based value fashion retailer for an exclusive sourcing partnership for Bangladesh and India.

Further, Techno Design, PDS’s Germany-based subsidiary, is now the exclusive agent of Woolworth for apparel, home textile, and hard goods in India, handling Woolworth’s orders and utilising the full potential of the sourcing market in India - leveraging the country’s strengths of stable government and economy, functional infrastructure, and a wide range of resources and raw materials. Likewise, PDS’ Bangladesh-based subsidiary, Kleider Sourcing is now the sole agent for apparel, home textile, and hard goods in Bangladesh for Wibra, a Dutch discount store chain.

In this quarter, PDS also acquired DBS Lifestyle, a design-led company catering to fashion and home categories. DBS owns over 20,000 original textile designs and patterns and adds nearly 2,500 artworks. DBS caters to the needs of 200+ fashion and 150+ home clients globally across 15 countries on three continents.

Fibre2Fashion News Desk (KD)