PDS Limited, the global fashion infrastructure company offering customized solutions to global brands and retailers across services like product development, sourcing, manufacturing, and brand management, announced its financial results for the quarter that ended June 30, 2023.
The Company reported a topline of ₹2,115crs for the quarter ended June 30, 2023, with the gross merchandise value handled by the Company increased by 13% YoY to ₹3,025cr. The Company witnessed Gross margins increase from 15.9% in Q1 FY23 to 18.7% in Q1 FY24. The Company earned an EBITDA of ₹67crs with an EBITDA margin of 3.2%. Profit after tax stood at ₹23crs. Reported ROCE and ROE were 37% and 27% respectively.
During the quarter, the Company completed the acquisition of the Ted Baker Design Group business acquiring employees and net working capital of the wholesale business. In the first 15 days, the business has delivered ₹30cr in topline with around 9% bottom line. This acquisition is enabling the Company to establish a proof of concept which is expected to translate into more such opportunities.
The Company’s sourcing segment reported a topline of ₹2,031crs with an EBIT of ₹45crs. The segment reported a ROCE of 38%. The manufacturing segment reported revenue of ₹117crs with an EBIT margin of 3.5% and ROCE of 6%. With an aim to further enhance manufacturing capabilities, the Company recently installed solar panels in its factory, Green Smart Shirts Ltd, Bangladesh. Thus, enabling the factory to generate clean energy for its use, in addition to translating into cost savings. The Company has further, invested in upgrading its premises to improve fire resistance ratings, which also helps in securing US customers.
Speaking on the results, Pallak Seth, Executive Vice Chairman, PDS Limited said, “We believe that the forthcoming months may continue to present challenges, exerting an influence on our growth in the immediate period. However, our medium to long-term outlook is positive, and believe that the trajectory is expected to turn around in the latter part of the year. In spite of the headwinds, we are focusing on building our capabilities and service offerings while exploring strategic opportunities to position ourselves for growth.”
Commenting on the Company’s performance and outlook, Sanjay Jain, Group Chief Executive Officer, PDS Limited said, “Our asset-light platform has proven valuable in navigating through the challenges confronted by the global fashion industry. While the quarter experienced subdued growth, we need to see it in the light of the ongoing macroeconomic headwinds, production slowdown due to extended EID holidays during the quarter, and comparison to an exceptional Q1 FY23, which benefitted from post covid pent up demand. We are looking forward to the opportunities that lie ahead and remain focused on delivering long-term value to our customers, employees, and shareholders.”