PDS Multinational Fashions Ltd, a leading global plug and play design-led platform offering product development, sourcing, virtual manufacturing & supply chain platforms catering to leading brands and retailers globally, has announced its financial results for Q1 FY22.
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 of 68%
- Gross margins expanded from 16.7% to 17.3% in Q1 FY22
- Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) margin stood at 2.1% in Q1 FY22 vs 1.6% in Q1 FY21
- EBIT stands at ₹66 crore in Q1 FY22, as against ₹17 crore in Q1 FY21
- 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
- Basic Earnings per share (EPS) during Q1 FY22 stood at ₹20.69 (vs full year FY21 EPS of ₹32.37)
- The Company clocked ROCE’s of 33% and ROE’s of 29% in Q1 FY221
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. PDS as a global platform will continue its focus on sustainability efforts whether it is promoting sustainable materials, low impact manufacturing, investing in sustainable solutions or creating circular opportunities. We as a global corporate have a responsibility towards minimizing our environmental impact and this spirit drives through the entire PDS ecosystem. This is also the need of the hour and a crucial consideration for our customers.”
“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 surpassed 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, and Right Factory” helps deliver low impact distribution and emissions. PDS has a team of 41 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, Climate Action).
Further, as part of the strategy of expanding beyond the predominant markets of UK and Europe, PDS n 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 this year.
PDS platform can play a key role in being an influencer of change across the ecosystem and is working towards building a sustainable future.