PDS Limited Reported 9M FY22 Revenue of ₹6,053cr (with 36% growth) and PAT of ₹207cr (growth of 162%)

Mumbai, 31^st January 2022: PDS Limited (erstwhile PDS Multinational Fashions Limited), 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 the quarter and nine months ended December 31, 2021.

Key performance highlights (Q3 FY22 vs Q3 FY21) (Consolidated):

Ø  Income from operations stood at ₹2,232cr as compared to ₹1,626cr in Q3 FY21; y-o-y growth of 37%

Ø  Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) was ₹101cr vs ₹76cr in Q3 FY21

Ø  Reported Earnings Before Interest and Tax (EBIT) of ₹89cr against ₹67cr in Q3 FY21 (growth of 33%)

Ø  Profit After Tax (PAT) of ₹81cr vs ₹59cr in Q3 FY21 (38% growth), with a margin of 3.6%

Ø  The Company clocked ROCE’s of 38% and ROE’s of 33% in Q3 FY22¹

Ø  EBITDA was ₹220cr vs ₹133cr in 9M FY21 and margin stood at 3.6% vs 3.0% in 9M FY21

Ø  Reported EBIT of ₹234cr against ₹113cr in 9M FY21 (growth of 107%)

Ø  PAT stood at ₹207cr vs ₹79cr in 9M FY21. The Company’s PAT margin expanded to 3.4% vs 1.8% in 9M FY21

Ø  Basic EPS during 9M FY22 stood at ₹65.76 (vs full year FY21 EPS of ₹32.37)

The sourcing segment which accounts for ~96% of the Company’s topline has clocked 34% growth in nine months ended December 2021, with a topline of ₹5,807cr. This segment reported an EBIT of

₹213cr with a ROCE of 51%.

The manufacturing segment has doubled its topline to ₹382cr in nine months ended FY22 because of near full capacity utilization of the facilities. A strong focus on execution and higher efficiencies has enabled the Company to significantly reduce losses by 74% compared to last year. This segment is at the cusp of achieving profitability, with a Loss Before Tax of less than c.₹5cr in Q3 FY22. The Company is targeting this segment to be in the green in the next quarter.

Further, the Company has successfully achieved negative working capital of 2 days vs 10 days in the previous quarter. This along with the Company’s strong operating performance has resulted in net debt reduction by ₹206cr in Q3 FY22 to ₹26cr. The combination of all the above has resulted in the Company achieving strong leverage ratios; with Net Debt/Equity of 0.03x, Net Debt/EBITDA of 0.08x. This further translated into robust return ratios with a ROCE of 38% and ROE of 33%.

Given the strong performance in the last nine months and with the visibility of the next quarter, PDS is currently on track to achieve $1bn in topline.

The Company has received requisite approvals and has changed its name from PDS Multinational Fashions Limited to PDS Limited.

PDS Limited operates an integrated design-led platform offering product development, sourcing, virtual manufacturing, and distribution for major brands and retailers worldwide. The Company operates a vast global network covering over 50 offices, 22 countries, and over 3,000 associates and 5,000 associates & factory workers worldwide.

The Company reported consolidated revenues of Rs.6,213cr in fiscal 2020-21, an increase of 1.3x over the last five years. Further, Profit after tax has increased at a 5-year cagr of 40%, with a ROCE of 22% in 2020-21. Notwithstanding the business disruptions caused due to COVID pandemic, the Company is taking steps to minimize the impact and ensure the safety and well-being of its employees, business partners, and communities.