Pearl Global Industries has seen a significant increase in shareholding by HDFC Mutual Fund, reflecting growing investor interest in the company. The mutual fund giant has raised its stake from 5.10% to 7.23% of the paid-up equity share capital, marking a substantial 2.13% increase in its position.

Acquisition Details

The increase in shareholding came through open market transactions, with HDFC Mutual Fund acquiring an additional 9,97,306 shares. This brings their total holding to 33,23,447 shares. The transaction underscores HDFC Mutual Fund's confidence in Pearl Global Industries' potential and market position.

Company Overview

Pearl Global Industries, listed on both the BSE Limited and National Stock Exchange of India Limited, has a paid-up equity share capital of Rs. 22,98,93,585. This capital is divided into 4,59,78,717 equity shares, each with a face value of Rs. 5.

Regulatory Compliance

In compliance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, HDFC Asset Management Company Limited, which manages HDFC Mutual Fund, has duly informed the relevant authorities about this change in shareholding.

Fund-wise Breakdown

The increased stake is held across multiple schemes of HDFC Mutual Fund, including:

• HDFC Business Cycle Fund
• HDFC Manufacturing Fund
• HDFC Small Cap Fund

Market Implications

This substantial increase in stake by a major institutional investor like HDFC Mutual Fund could be seen as a positive signal by the market. It may indicate the fund's positive outlook on Pearl Global Industries' future prospects and potential for growth.

While the specific reasons for HDFC Mutual Fund's increased investment have not been disclosed, such moves are often based on thorough analysis of a company's fundamentals, market position, and growth potential.

Pearl Global Industries Limited (PGIL), one of India's largest listed garment exporters, has reported a robust financial performance for the first quarter. The company's consolidated revenue from operations surged by 16.6% year-over-year to ₹1,228.00 crore, marking its fifth consecutive quarter of achieving over ₹1,000.00 crore in revenue.

Financial Highlights

• Revenue: Consolidated revenue from operations increased to ₹1,228.00 crore, up from ₹1,053.00 crore in the same period last year.
• EBITDA: Adjusted EBITDA (excluding ESOP expenses) grew by 13.4% year-over-year to ₹114.00 crore, with a margin of 9.3%.
• Net Profit: The company's consolidated net profit rose to ₹678.00 crore, a 3.8% increase from ₹653.00 crore in the previous year's corresponding quarter.
• Operational Performance: PGIL shipped 17.2 million pieces, up from 16.7 million pieces in the same quarter of the previous year.

Segment Performance

The company's growth was primarily driven by strong performances in Vietnam and Indonesia. The geographical revenue split shows:

Management Commentary

Pulkit Seth, Vice-Chairman & Non-Executive Director of Pearl Global Industries, stated, "We are pleased to report another quarter of resilient performance, with revenue rising 16.6% YoY to ₹1,228.00 crore, despite the challenges in the global macro environment. This growth was led by enhanced contributions from Vietnam and Indonesia, fueled by strong order books and healthy sales volumes."

Pallab Banerjee, Managing Director, added, "Our adjusted EBITDA margin stands at ~10.7%, excluding the impact of operational losses at newly established facilities in Guatemala and Bihar, and tariff-related costs. We are seeing positive momentum from US customers for our Vietnam, Indonesia, Bangladesh, and Guatemala operations."

Strategic Developments

The company is recalibrating its business strategy in response to evolving trade dynamics, particularly the US tariff policies. While production for the US market will be reassigned to more favorable hubs, India will continue to grow by tapping into new partnerships, such as the UK FTA, and focusing on existing FTA markets like Japan and Australia.

Dividend

The Board of Directors declared a second interim dividend of ₹6.50 per equity share, which was paid during the quarter.

Pearl Global Industries continues to demonstrate strong growth and adaptability in the face of global challenges, leveraging its diversified geographical presence and strategic initiatives to maintain its position as a leading garment exporter.