Home » India’s PDS Limited reports 21% growth in gross profit in Q3 FY23

India’s PDS Limited reports 21% growth in gross profit in Q3 FY23

Source
India-based global fashion infrastructure company PDS Limited has reported 21 per cent growth in gross profit to ₹450 crore (approximately $55.06 million) in the third quarter (Q3) of fiscal 2023 (FY23), compared to ₹371 crore in Q3 FY22, with a margin expansion of 86 basis points (bps). The company’s revenue from operations in Q3 FY23 increased by 15 per cent to ₹2,574 crore, from ₹2,232 crore in Q3 FY22.

In Q3 FY23, the company’s profit after tax (PAT) increased to ₹93 crore, compared to ₹81 crore in Q3 FY22, while the basic EPS stood at ₹5.94, a growth of 18 per cent year-on-year (YoY). EBITDA in Q3 FY23 increased by 27 per cent to ₹132 crore, from ₹104 crore in Q3 FY22, PDS Limited said in a press release.

In the first nine months (9M) of fiscal 2023, revenue from operations increased by 29 per cent to ₹7,835 crore, compared to ₹6,053 crore in 9M FY22. Gross Profit was ₹1,317 crore, compared to ₹1,013 crore in 9M FY22, increased by 30 per cent. The company’s EBITDA increased by 46 per cent in 9M FY23 to ₹327 crore, from ₹223 crore in 9M FY22, while the PAT stood at ₹250 crore vs ₹207 crore in 9M FY22, a growth of 21 per cent.

PDS Limited has garnered exclusive sourcing agreements from leading brands for India and is focused on further fortifying its footprint in the country. The company is pursuing strategic opportunities to expand its manufacturing footprint for further strengthening its capabilities in the region. Through these initiatives, PDS aims to contribute to the growing exports of India and the ‘Make in India’ drive.

The sourcing segment clocked a topline of ₹7,497 crore in 9M FY23, accounting for 96 per cent of the company’s topline with a growth of 29 per cent compared to the previous year. The manufacturing segment recorded growth of 32 per cent with a topline of ₹502 crore vs ₹382 crore in 9M FY22.

With the installation of a washing plant in Bangladesh and a centralised cutting plant in Sri Lanka, the company is augmenting its manufacturing capabilities which are expected to translate into margin accretion. The Bangladesh washing plant is funded by Netherlands-based Good Fashion Fund. The manufacturing facility will also benefit from Good Fashion Fund’s expertise in technical, environmental, and social matters for sustainable production. Further, the Centralised Cutting Plant in Sri Lanka will not only make the operations more streamlined and efficient, but the vacant space created will be used for setting up additional machines further increasing production capabilities. In line with its long-term strategy, the company is also evaluating manufacturing partnerships in Egypt (other than India) which is expected to further build PDS’s near shoring capabilities.

“As the globe is contending with demand pressures in the near term, we are capitalising on opportunities within our supply chain to maximise our revenues and margins. With several strategic opportunities under our bespoke sourcing as a service model and expansion in manufacturing capabilities, we at PDS are looking towards stronger and sustainable long-term growth across the platform,” said Pallak Seth, vice-chairman.

“At PDS we have built a strong sourcing and manufacturing platform focused on delivering great quality with operational excellence. Over the last few quarters, we have made strategic investments across our value chain, expanding capabilities and new business verticals, that are expected to enhance our expertise as a design to delivery platform,” said Sanjay Jain, group chief executive officer.

Lastly, the company has become a signatory to the United Nations Global Compact and will support the Ten Principles of the United Nations Global Compact on human rights, labour, environment, and anti-corruption.

PDS has also announced the appointment of Rahul Ahuja as the group chief financial officer (CFO). Ahuja joined PDS Group as chief operations officer and CFO of new businesses in India and was responsible for spearheading strategic initiatives. He has now taken on the role of group CFO and will report to Sanjay Jain (group CEO). Furthermore, the company’s existing group CFO, Ashish Gupta, has decided to pursue the role of chief executive officer outside of PDS Group.

Fibre2Fashion News Desk (DP)

+1
0
+1
0
+1
0
+1
0
+1
0
+1
0
+1
0
Source

Leave a Comment


To prove you're a person (not a spam script), type the security word shown in the picture.
You can enter the Tamil word or English word but not both
Anti-Spam Image