PDS LIMITED — Earnings Release 2022

Jan 31, 2022

PDS Limited

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PDS/SE/2021-22/97

January 31, 2022

Listing DepartmentNational Stock Exchange of India LimitedExchange Plaza, C-1 Block G,Bandra Kurla Complex, Bandra (E),Mumbai -400 051Scrip Symbol: PDSMFL	Corporate Relationship DepartmentBSE LimitedPhiroze Jeejeebhoy Towers,Dalal Street,Mumbai- 400001Scrip Code: 538730

Re: ISIN - INE111Q01013

Sub: Press Release for Financial Results for the Quarter and Nine Months ended December 31, 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 Limited regarding the announcement of Financial Results for the quarter and nine months ended December 31, 2021.

We request you to kindly take the above on records.

Thanking you,

Yours faithfully, for PDS Limited

(Erstwhile PDS Multinational Fashions Limited)

• �J Abhishekh Kanoi General Counsel & Company Secretary ICSI Membership No.: F-9530

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Encl: As above

PDS Limited (Erstwhile PDS Multinational Fashions Limited)

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; +91 22 41441100 CIN: L18101KA2011PLC094125

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PDS Limited Reported 9M FY22 Revenue of ₹6,053cr (with 36% growth) and PAT of ₹207cr (growth of 162%)

Highlights for 9M FY22 Consolidated Financials

• Topline growth of 36% YoY

• With EBITDA of ₹220cr, margin expanded to 3.6%

• EBIT stood at ₹234cr, grew by 107%

• Profit After Tax grew by 162% to ₹207cr

• Basic EPS at ₹65.76 as compared to full-year FY21 EPS of ₹32.37

• Achieved working capital of -ve 2 days

Mumbai, 31[st] January 2022: PDS Limited (erstwhile PDS Multinational Fashions Limited), 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 the quarter and nine months ended December 31, 2021.

Key performance highlights (Q3 FY22 vs Q3 FY21) (Consolidated):

• ➢ Income from operations stood at ₹2,232cr as compared to ₹1,626cr in Q3 FY21; y-o-y growth of 37%

• ➢ Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) was ₹101cr vs ₹76cr in Q3 FY21

• ➢ Reported Earnings Before Interest and Tax (EBIT) of ₹89cr against ₹67cr in Q3 FY21 (growth of 33%)

• ➢ Profit After Tax (PAT) of ₹81cr vs ₹59cr in Q3 FY21 (38% growth), with a margin of 3.6%

• ➢ The Company clocked ROCE’s of 38% and ROE’s of 33% in Q3 FY22[1]

Key performance highlights (9M FY22 vs 9M FY21) (Consolidated):

• ➢ Revenues from operations stood at ₹6,053cr as compared to ₹4,448cr in 9M FY21; y-o-y growth of 36%

• ➢ EBITDA was ₹220cr vs ₹133cr in 9M FY21 and margin stood at 3.6% vs 3.0% in 9M FY21

• ➢ Reported EBIT of ₹234cr against ₹113cr in 9M FY21 (growth of 107%)

• ➢ PAT stood at ₹207cr vs ₹79cr in 9M FY21. The Company’s PAT margin expanded to 3.4% vs 1.8% in 9M FY21

• ➢ Basic EPS during 9M FY22 stood at ₹65.76 (vs full year FY21 EPS of ₹32.37)

1 ROCE based on Net Capital Employed and on TTM figures; EBIT includes other income emanating from capital employed

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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Mr. Pallak Seth, Vice Chairman, PDS Limited commented “We are seeing good traction with leading brands and retailers who are exploring options to outsource the sourcing function. In order to tap into this opportunity, we are offering “Sourcing as a Service” to large brands and retailers and operate as a sole and exclusive partner for pre-agreed territories. We recently concluded two strategic agreements, the first being Techno Design, our Germany-based group company, which has become the exclusive sourcing partner of s.Oliver for India and Sri Lanka region. Secondly, we have become the sole & exclusive vendor to Hanes Brands in Bangladesh. We are thrilled to partner with leading brands and retailers for their sourcing & manufacturing requirements.”

Commenting on the results, Mr. Sanjay Jain, Group CEO, PDS Limited said, “We are pleased to share that in the last 9 months, we have nearly achieved our full-year numbers of last fiscal. Our plans of expanding our footprint in the North American market continue to gain further momentum. We had ended last financial year with the contribution from North America at 8% of our topline which has now increased to 19% in the third quarter this year. The recent arrangement with Hanes Brands will further bolster our North American operations. We are excited about the opportunities that are unfolding in this geography.”

The sourcing segment which accounts for ~96% of the Company’s topline has clocked 34% growth in nine months ended December 2021, with a topline of ₹5,807cr. This segment reported an EBIT of ₹213cr with a ROCE of 51%.

The manufacturing segment has doubled its topline to ₹382cr in nine months ended FY22 because of near full capacity utilization of the facilities. A strong focus on execution and higher efficiencies has enabled the Company to significantly reduce losses by 74% compared to last year. This segment is at the cusp of achieving profitability, with a Loss Before Tax of less than c.₹5cr in Q3 FY22. The Company is targeting this segment to be in the green in the next quarter.

Further, the Company has successfully achieved negative working capital of 2 days vs 10 days in the previous quarter. This along with the Company’s strong operating performance has resulted in net debt reduction by ₹206cr in Q3 FY22 to ₹26cr. The combination of all the above has resulted in the Company achieving strong leverage ratios; with Net Debt/Equity of 0.03x, Net Debt/EBITDA of 0.08x. This further translated into robust return ratios with a ROCE of 38% and ROE of 33%.

Given the strong performance in the last nine months and with the visibility of the next quarter, PDS is currently on track to achieve $1bn in topline.

The Company has received requisite approvals and has changed its name from PDS Multinational Fashions Limited to PDS Limited.

About PDS Ltd: (www.pdsmultinational.com)

PDS 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.

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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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 ensure 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).

For more information contact:

Reenah Joseph	Ankita Arya	Gaurangi Veshvikar
(Head Corporate Finance, M&A &
Investor Relations)
PDS Limited	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 the economic environment in India and overseas, tax laws, inflation, litigation, etc. Actual results might differ substantially from those expressed or implied. PDS Limited 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.

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