PDS Limited, the global fashion infrastructure company offering customized solutions to global brands and retailers across services like product development, sourcing, manufacturing, and brand management, has announced its financial results for Q4 and full year FY23.
PDS has demonstrated strong, resilient growth with a topline of ₹10,577cr and a growth of 20% as compared to ₹8,828cr in FY22. The Company reported a Gross Margin of 16.7%. EBITDA increased by 40% to ₹459cr from ₹327cr in FY22, with FY23 margins of 4.3%. PAT stood at ₹327cr vs ₹293cr in FY22, registering a growth of 12%. In line with the dividend distribution policy, the Company has declared a 255% dividend of ₹5.10 per share, of which ₹2.50 was paid as an interim dividend. This translates into a payout of 25% on EPS.
The sourcing segment clocked a topline of ₹10,105cr in FY23, accounting for ~96% of the Company’s topline with a growth of 19% compared to the previous year. The segment reported an EBIT of 4% with a ROCE of 48%. PDS launched Sourcing as a Service approximately 18 months ago, which witnessed good traction with the Company partnering with select global brands and retailers to handle merchandise value of $1bn annually. The manufacturing segment recorded growth of 28% with a topline of ₹703cr vs ₹547cr in FY22. The segment achieved its first full year of profitability journey with a PAT margin of 2.6%.
Speaking on the results, Pallak Seth, Executive Vice Chairman, said, “At PDS, we are well-poised to take advantage of disruptions within the fashion value chain to increase our share of wallet, profit, and margins, resultantly the quality of earnings. The Company is pursuing such opportunities through its bespoke Sourcing as a Service and Brand Management models, aiming for sustained growth with long-term annuity agreements. This year, we have established strategic relationships with top brands and retailers by offering them customized solutions for specific territories. Additionally, we see several opportunities unfolding as brands increasingly seek to collaborate with end-to-end supply chain companies like PDS.”
Commenting on the Company’s performance and outlook, Sanjay Jain, Group Chief Executive Officer said, “Notwithstanding a year of economic uncertainty, we at PDS have remained focused on building a strong sourcing, manufacturing and brand management platform. Through our strategic initiatives, process improvements, and operational excellence we delivered sustained profitability. We remain committed to navigating the next year prudently while we maintain our growth momentum to get to our ambition of $2.5bn topline in the next 3-5 years.”
PDS signed a long-term strategic partnership with Authentic Brands Group (ABG), a global brand development, marketing, and entertainment platform, for the brand Ted Baker. PDS will serve as the global hub for the newly established Ted Baker Design Group (TDG) taking on Ted Baker’s design and merchandising functions. Additionally, PDS service wholesale distribution accounts in UK and Europe for the brand. This is the Company’s second partnership with ABG; last year a license agreement was signed between the two companies for the brand Forever 21 in the UK and Europe region.
With an aim to expand its supply chain capabilities in the fashion value chain, PDS has announced the acquisition of 40% of Transport Partner Limited (TPL), a Bangladesh-based supply chain provider. Established in 2017, TPL is a leading provider of supply chain and logistics solutions, with a global reach through a network of exclusive agents worldwide. PDS will provide TPL access to its base of customers, enabling its next phase of growth. Given the value the Company will be offering, PDS is acquiring TPL at a par value of ₹15 lakhs, which is expected to clock ₹15cr in revenue and ₹6cr profit provisionally for the year.
Over the last 24 years, the PDS platform has grown to become a global company with operational excellence, delivering value to all stakeholders across the fashion value chain, with a strong outlook for the future.