Global firm PDS' GMV rises 13% to ₹6,723 cr in Q2 FY24

The company’s consolidated topline was reported at ₹4,578 crore, accompanied by a gross margin of 20.4 per cent, which marks an expansion of 394 basis points, PDS said in a press release.

PDS Limited's earnings before interest, taxes, depreciation, and amortisation (EBIDTA) stood at ₹204 crore, with an EBIDTA margin of 4.5 per cent, an increase of 80 basis points compared to the same period last year. Profit after tax (PAT) for the company was ₹112 crore, resulting in a margin of 2.4 per cent.

Looking at the second quarter of fiscal 2024 (Q2 FY24), PDS Limited maintained the momentum with a year-on-year (YoY) GMV growth of 13 per cent at ₹3,698 crore. However, the reported top line saw a decrease of 16 per cent YoY, amounting to ₹2,463 crore. Despite the dip, gross margins showed a marked improvement, up by 496 basis points to 21.9 per cent compared to 16.9 per cent in the second quarter of the previous fiscal.

Moreover, EBITDA Margins in Q2 FY24 increased by 141 basis points to 5.5 per cent versus 4.1 per cent in Q2 FY23. The company's PAT grew by 5 per cent to ₹88 crore, with margin growth of 71 basis points.

The return on capital employed (ROCE) was an impressive 30 per cent in Q2 FY24. The company has also announced an interim dividend of ₹1.60 per share.

Adding to the strategic developments, Harold Tillman CBE, a distinguished personality in the global fashion domain, has taken on the role of global ambassador for PDS Limited. In addition, Mark Green has been appointed to the PDS advisory board. His role will primarily involve sharpening the focus on North American growth strategies, representing PDS across various industry forums, and identifying new partnership opportunities with US retailers and brands.

“At PDS, we are strategically positioned to capitalise on disruptions in the fashion value chain, driving higher wallet share and margins, ultimately enhancing the quality of our earnings. The external environment is challenging which is presenting us a good opportunity to actively explore prospects through our tailored sourcing as a service and brand management services, with a focus on fostering sustained growth through long-term partnerships. Furthermore, we anticipate more opportunities emerging as brands show a growing inclination to partner with comprehensive supply chain partners like PDS,” said Pallak Seth, executive vice chairman.

"Despite a challenging economic and geopolitical landscape this past year, PDS has steadfastly concentrated on fortifying our sourcing, manufacturing, and brand management capabilities, along with a better service mix of high margin services such as brand management contributing more to the top line. Through strategic initiatives, enhanced processes, and operational efficiency, we continue to achieve profitability. Looking ahead, we are optimistic about the resurgence of demand in the second half of this year, and continue prudent expenditure, ensuring both stability and growth momentum,” said Sanjay Jain, group chief executive officer.

ALCHEMPro News Desk (DP)