PDSMultinationalFashionsLtd,aleadingglobalplugandplaydesign-led platform offering product development, sourcing, virtual manufacturing & supply chain platforms catering to leading brands and retailers globally, has announced its financial results for Q1FY22.
Key performance highlights (Q1 FY22 vs Q1 FY21) (Consolidated):
Revenues from operations stood at ₹1,626 crore as compared to ₹967 crore in Q1 FY21; y-o-y growth of68%
Gross margins expanded from 16.7% to 17.3% in Q1FY22
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) margin stood at 2.1% in Q1 FY22 vs 1.6% in Q1FY21
EBIT stands at ₹66 crore in Q1 FY22, as against ₹17 crore in Q1FY21
Profit After Tax (PAT) stood at ₹59 crore for Q1 FY22 as against ₹2 crore in Q1 FY21.The
Company’s PAT margin expanded to 3.6% vs 0.2% in Q1 FY21
The Company clocked ROCE’s of 33% and ROE’s of 29% in Q1FY221
Mr. Pallak Seth, Vice Chairman, PDS Multinational Fashions Limited commented “PDS platform is a crucial connecting link between retailers/brands at one end and supplier and manufacturers at the other.PDSasaglobalplatformwillcontinueitsfocusonsustainabilityeffortswhetheritispromoting sustainablematerials,lowimpactmanufacturing,investinginsustainablesolutionsorcreatingcircular opportunities. We as a global corporate have a responsibility towards minimizing our environmental impactandthisspiritdrivesthroughtheentirePDSecosystem.Thisisalsotheneedofthehouranda crucial consideration for ourcustomers.”
1 Adjusted for dividend; ROCE based on Net Capital Employed
“We are also pleased to have Mr. Parth Gandhi (Ex-Senior Partner and Managing Director, Apollo Global Mangement’s India JV) join PDS Board of Directors and Mr. Sunil Srivastav (Ex- Dy. Managing Director Corporate Accounts Group in State Bank of India) coming on board in one of our key subsidiaries Techno Design HK Limited, as Director”, Mr. Seth further added.
Commenting on the results, Mr. Sanjay Jain, Group CEO, PDS Multinational Fashions Limited said, “The first quarter of the fiscal has begun on a positive note with strong growth and expansion in profitability compared to last year. We expect this trajectory to continue during the year. We are pleased to state that we have surprassed our pre-COVID levels (Q1 FY20) of growth & profitability. During the quarter, the sourcing segment continued to achieve high scalability with minimal capex. The merchandise value of the topline driven through our sourcing platform increased by 65% in Q1 FY22 and the power of the platform further enabled decline of net working capital days. Further, we witnessed contraction in losses of our manufacturing business. This blended into ROCE of 33% and ROE 29% vs 20% and 12% respectively in same quarter last year.”
Sustainability is one of the key building blocks of PDS platform. The strategy of “Right Product, Right Country,andRightFactory”helpsdeliverlowimpactdistributionandemissions.PDShasateamof41 members, across geographies, part of its ethical and technical task force which closely monitor and review the PDS ecosystem. A series of sustainability initiatives are being carried out across the platform whether it is focussing on innovations, empowering women workforce, reducing carbon footprint, preserving natural resources, supporting social developments, increasing customers satisfaction etc. The PDS Venture Tech portfolio is primarily participating in opportunities that focus on 3 prime areas derived from UN Sustainability Development Goals (Sustainable Communities, Responsible Consumption & Production, ClimateAction).
Further,aspartofthestrategyofexpandingbeyondthepredominantmarketsofUKandEurope,PDS endeavours to increase the share of US business to around 20% in the next three to five year period. Additionally, PDS is in dialogue with retailers/brands to kick start the home textile category business by October thisyear.
PDSplatformcanplayakeyroleinbeinganinfluencerofchangeacrosstheecosystemandisworking towards building a sustainablefuture.