Corporate Update

PDS Ltd. of India reports a topline increase of 20% to $10,577 cr. in FY23.

Published: May 17, 2023

PDS Limited, a firm that provides tailored solutions to international brands and retailers, had a topline of 10,577 crores in fiscal 2023 (FY23), an increase of 20% from 8,828 crores in FY22. The business had a gross margin of 16.7%. With FY23 margins of 4.3%, EBITDA expanded by 40% to 459 crore from 327 crore in FY22.

Profit after tax (PAT) increased by 12% from FY22 to FY23 to reach $327 billion from $293 billion. According to the company’s dividend distribution policy, a 255 percent dividend of 5.10 per share has been declared, of which 2.50 was paid as an interim dividend. What this amounts to is a 25 percent of the EPS is paid out. Additionally, according to a press release from the company, PDS’ basic EPS was 20.30.

With an increase of 19% from the prior year, the sourcing segment’s topline of 10,105 crore in FY23 represented roughly 96% of the company’s overall topline. The segment produced a return on capital employed (ROCE) of 48% and an EBIT of 4%.

PDS introduced sourcing as a service about 18 months ago, and it quickly gained popularity. The company now partners with a few worldwide companies and shops to handle $1 billion worth of items every year.

Compared to FY22, the manufacturing segment’s top line increased by 28% to 703 crore. during FY22. With a PAT margin of 2.6%, the segment finished its first full year of profitability.

For the benefit of the Ted Baker brand, PDS entered into a long-term strategic agreement with Authentic Brands Group (ABG), a leading worldwide brand development, marketing, and entertainment platform. The newly formed Ted Baker Design Group (TDG), which will assume Ted Baker’s design and merchandising responsibilities, will have PDS as its worldwide base. Additionally, the brand has wholesale distribution deals with PDS service across the UK and Europe. The two companies previously entered into a licence deal for the use of the Forever 21 brand in the UK and Europe, which marked the beginning of the company’s second cooperation with ABG.

In an effort to increase its fashion supply chain skills PDS has announced the purchase of 40% of Bangladesh-based Transport Partner Limited (TPL), a provider of supply chains. TPL was founded in 2017 and is a top supplier of supply chain and logistics solutions with a network of exclusive agents all over the world. PDS will grant TPL access to its clientele, paving the way for the company’s subsequent growth stage. Given the value the firm will be providing, PDS is purchasing TPL at a par value of 15 lakh rupees; the company is anticipated to generate 15 crore in revenue and 6 crore in profit for the year, according to the statement.

“At PDS, we are well-positioned to take advantage of disruptions within the fashion value chain to grow our market share, earnings, and margins, as a result. the standard of pay. Through its bespoke sourcing as a service and brand management models, the company is exploring these prospects with the goal of sustaining growth through long-term annuity contracts. By providing them with specialised solutions for particular territories this year, we were able to forge strategic ties with leading brands and retailers. Additionally, as brands increasingly choose to engage with end-to-end supply chain organisations like PDS, we see a number of opportunities emerging, according to executive vice chairman Pallak Seth.

“Despite an uncertain economy, we at PDS have continued to concentrate on creating a solid sourcing, production, and brand management platform. We produced sustained profitability through our strategic initiatives, process enhancements, and operational excellence. We are still dedicated to managing the upcoming year responsibly while keeping up our growing momentum. get to our ambition of $2.5 billion topline in the next 3-5 years,” said Sanjay Jain, group chief executive officer.


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