Shares of this small-cap textile stock surged over 8 percent on Wednesday, following the company’s significant 300 percent YoY rise in net profit and robust revenue growth in its latest quarterly results.
Share Price Movement
During Wednesday’s trading session, PDS Ltd’s share price increased by 8 percent, reaching an intra-day high of Rs.545.00 per share, up from the previous close of Rs.504.50 apiece. The shares have retreated since then and are trading at Rs.533.95 per share.
What Happened
The bullish movement in PDS Ltd’s stock price reflects its growth in revenue and net profit for the recent quarter. In its filing for Q2 FY25, the company reported a 34 percent YoY increase in revenue, reaching Rs.3,306 crore, up from Rs.2,463 crore in Q2 FY24, and a 26 percent QoQ increase from Rs.2,621 crore in Q1 FY25.
Net profit rose significantly by 300 percent YoY to Rs.93 crore, compared to Rs.31 crore in Q2 FY24, and 6 percent from Rs.88 crore in Q1 FY25.
The EBITDA of the company increased 103 percent compared to Q1 FY25 with margins expanding by 174bps
Return ratios show a ROCE of 17.5 percent and an ROE of 13.0 percent, supported by a strong current ratio of 1.10 and a debt-to-equity ratio of 0.90.
Product Break Up
In H1 FY25, PDS Ltd’s product revenue distribution saw men’s wear at 38 percent, women’s wear at 36 percent, children’s wear at 21 percent, essentials wear at 1 percent, and other categories at 4 percent.
Geographical Break-Up
In H1 FY25, PDS Ltd’s geographic revenue distribution included 42 percent from the UK, 34 percent from Europe, 15 percent from North America, 13 percent from Asia and the Middle East, and 3 percent from other regions.
About the Company
PDS Ltd, formerly known as PDS Multinational Fashions Limited, is a prominent player in the global apparel industry, engaged in the trading and manufacturing of ready-to-wear garments.
Written by – Siddesh S Raskar
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