PDS LIMITED — Earnings Release 2022

Aug 4, 2021

PDS Multinational Fashions Limited

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PDS/SE/2021-22/34	August 4, 2021 Corporate Relationship Department BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400001 Scrip Code: 538730
Listing Department National Stock Exchange of India Limited Exchange Plaza, C-1 Block G, Bandra Kurla Complex, Bandra (E), Mumbai -400 051 Scrip Symbol: PDSMFL	Corporate Relationship Department BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400001 Scrip Code: 538730

Re: ISIN - INE111Q01013

Sub: Press Release for Financial Results for the Quarter ended June 30, 2021

Dear Sir/ Madam,

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the Press Release of PDS Multinational Fashions Limited regarding the announcement of Financial Results for the Quarter ended June 30, 2021.

We request you to kindly take the above on records.

Thanking you,

Yours faithfully, for PDS Multinational Fashions Limited - �J Abhishekh Kanoi Head of Legal & Company Secretary ICSI Membership No.: F-9530

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Encl.: As above

Regd. Off: No. 758 & 759, 2[nd] Floor, 19[th] Main, Sector -2, HSR Layout, Bengaluru – 560 102, Karnataka, (India) Corp. Office: Unit No.971, Solitaire Corporate Park, Andheri – Ghatkopar Link Road, Andheri (East), Mumbai – 400093, Maharashtra (India) Email: info@pdsmultinational.com; Website: www.pdsmultinational.com; Telephone No.: +91 80 67653000 CIN: L18101KA2011PLC094125

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PDS Multinational Fashions Ltd Reported Q1 FY22 Revenue of ₹1,626cr (with 68% growth) and PAT of ₹59cr (growth of 27x)

Highlights for Q1 FY22 Consolidated Financials

• Topline growth of 68% vs Q1 FY21

• Gross profit grew by 74%

• EBITDA margin expanded to 2.1%

• EBIT stood at ₹66 crore up by 3x

• Profit After Tax up by 27x to ₹59 crore

• Basic EPS at ₹20.69 as compared to last year’s -ve ₹1.93

Bengaluru, 4[th] August 2021: PDS Multinational Fashions Ltd, 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 Q1 FY22.

Key performance highlights (Q1 FY22 vs Q1 FY21) (Consolidated):

• ➢ Revenues from operations stood at ₹1,626 crore as compared to ₹967 crore in Q1 FY21; y-o-y growth of 68%

• ➢ Gross margins expanded from 16.7% to 17.3% in Q1 FY22

• ➢ Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) margin stood at 2.1% in Q1 FY22 vs 1.6% in Q1 FY21

• ➢ EBIT stands at ₹66 crore in Q1 FY22, as against ₹17 crore in Q1 FY21

• ➢ Profit After Tax (PAT) stood at ₹59 crore for Q1 FY22 as against ₹2 crore in Q1 FY21. The Company’s PAT margin expanded to 3.6% vs 0.2% in Q1 FY21

• ➢ Basic Earnings per share (EPS) during Q1 FY22 stood at ₹20.69 (vs full year FY21 EPS of ₹32.37)

• ➢ The Company clocked ROCE’s of 33% and ROE’s of 29% in Q1 FY22[1]

Mr. Pallak Seth, Vice Chairman, PDS Multinational Fashions Limited commented “PDS platform is a crucial connecting link between retailers/brands at one end and supplier and manufacturers at the other. PDS as a global platform will continue its focus on sustainability efforts whether it is promoting sustainable materials, low impact manufacturing, investing in sustainable solutions or creating circular opportunities. We as a global corporate have a responsibility towards minimizing our environmental impact and this spirit drives through the entire PDS ecosystem. This is also the need of the hour and a crucial consideration for our customers.”

1 Adjusted for dividend; ROCE based on Net Capital Employed

• J �

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Registered Office: 758 & 759, 19th Main, 2nd Floor, Sector - 2, HSR Layout, Bengaluru, Karnataka, 560102 Corporate Office: Unit No.971, Solitaire Corporate Park, Andheri (East), Mumbai, Maharashtra, 400093

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“We are also pleased to have Mr. Parth Gandhi (Ex-Senior Partner and Managing Director, Apollo Global Mangement’s India JV) join PDS Board of Directors and Mr. Sunil Srivastav (Ex- Dy. Managing Director Corporate Accounts Group in State Bank of India) coming on board in one of our key subsidiaries Techno Design HK Limited, as Director”, Mr. Seth further added.

Commenting on the results, Mr. Sanjay Jain, Group CEO, PDS Multinational Fashions Limited said, “The first quarter of the fiscal has begun on a positive note with strong growth and expansion in profitability compared to last year. We expect this trajectory to continue during the year. We are pleased to state that we have surprassed our pre-COVID levels (Q1 FY20) of growth & profitability. During the quarter, the sourcing segment continued to achieve high scalability with minimal capex. The merchandise value of the topline driven through our sourcing platform increased by 65% in Q1 FY22 and the power of the platform further enabled decline of net working capital days. Further, we witnessed contraction in losses of our manufacturing business. This blended into ROCE of 33% and ROE 29% vs 20% and 12% respectively in same quarter last year.”

Sustainability is one of the key building blocks of PDS platform. The strategy of “Right Product, Right Country, and Right Factory” helps deliver low impact distribution and emissions. PDS has a team of 41 members, across geographies, part of its ethical and technical task force which closely monitor and review the PDS ecosystem. A series of sustainability initiatives are being carried out across the platform whether it is focussing on innovations, empowering women workforce, reducing carbon footprint, preserving natural resources, supporting social developments, increasing customers satisfaction etc. The PDS Venture Tech portfolio is primarily participating in opportunities that focus on 3 prime areas derived from UN Sustainability Development Goals (Sustainable Communities, Responsible Consumption & Production, Climate Action).

Further, as part of the strategy of expanding beyond the predominant markets of UK and Europe, PDS endeavours to increase the share of US business to around 20% in the next three to five year period. Additionally, PDS is in dialogue with retailers/brands to kick start the home textile category business by October this year.

PDS platform can play a key role in being an influencer of change across the ecosystem and is working towards building a sustainable future.

About PDS Multinational Fashions Ltd: (www.pdsmultinational.com)

PDS Multinational Fashions 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 ensuring the safety and well-being of its employees, business partners, and communities. - The Company is listed on the BSE Ltd. (538730) and the National Stock Exchange of India Ltd (PDSMFL). �J

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Registered Office: 758 & 759, 19th Main, 2nd Floor, Sector - 2, HSR Layout, Bengaluru, Karnataka, 560102 Corporate Office: Unit No.971, Solitaire Corporate Park, Andheri (East), Mumbai, Maharashtra, 400093

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For more information contact:

Reenah Joseph Ankita Arya Gaurangi Veshvikar (Head Corporate Finance, M&A & Investor Relations) PDS Multinational Fashions Ltd. Concept Public Relations Concept Public Relations Tel: +91 99305 36567 Tel: +91 82910 82510 Tel: +91 93219 23248 E-mail: Email: Email: Reenah@pdsmultinational.com ankita@conceptpr.com gaurangi@conceptpr.com

DISCLAIMER:

Certain statements that are made in the Press Release may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like significant changes in economic environment in India and overseas, tax laws, inflation, litigation, etc. Actual results might differ substantially from those expressed or implied. PDS Multinational Fashions Ltd. will not be in any way responsible for any action taken based on such statements and discussions; and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

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Registered Office: 758 & 759, 19th Main, 2nd Floor, Sector - 2, HSR Layout, Bengaluru, Karnataka, 560102 Corporate Office: Unit No.971, Solitaire Corporate Park, Andheri (East), Mumbai, Maharashtra, 400093