EBITDA grew by 62% Y-o-Y to Rs 192 crore.
PDS, the global fashion infrastructure company offering product development, sourcing, manufacturing, and supply chain management catering to leading global brands and retailers, has announced its financial results for Q2 and H1 FY23.
The sourcing segment clocked a topline of Rs 5,051 crore in H1 FY23, accounting for 96% of the company’s topline with a growth of 38% compared to the previous year. The segment reported an EBIT of 3.3% with a ROCE of 44%. The company is focused on increasing its wallet share with existing customers and also onboarding new customers with customised service offerings including “Sourcing as a Serviceâ€.
The manufacturing segment recorded growth of 40% with a topline of Rs 315 crore vs Rs 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% 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.â€
Further added Sanjay Jain, Group Chief Executive Officer, “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 & categories building on our inorganic growth. Furthermore, we also focused on leveraging our scale while optimizing our resources, therefore truly fortifying the strong structure of our platform.â€
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 utilizing 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’s 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 2500 artworks. DBS caters to the needs of 200+ Fashion & 150+ Home clients globally across 15 countries on three continents.