India's PDS Ltd reports 20% topline growth to ₹10,577 cr in FY23

In FY23, profit after tax (PAT) stood at ₹327 crore vs ₹293 crore in FY22, registering a growth of 12 per cent. In line with the dividend distribution policy, the company has declared a 255 per cent dividend of ₹5.10 per share, of which ₹2.50 was paid as an interim dividend. This translates into a payout of 25 per cent on EPS. Furthermore, PDS’ basic EPS stood at ₹20.30, the company said in a press release.

The sourcing segment clocked a topline of ₹10,105 crore in FY23, accounting for approximately 96 per cent of the company’s topline with a growth of 19 per cent compared to the previous year. The segment reported an EBIT of 4 per cent with a return on capital employed (ROCE) of 48 per cent.

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 $1 billion annually.

The manufacturing segment recorded growth of 28 per cent in FY23 with a topline of ₹703 crore versus ₹547 crore in FY22. The segment achieved its first full year of profitability journey with a PAT margin of 2.6 per cent.

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 per cent 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 ₹15 crore in revenue and ₹6 crore profit provisionally for the year, the release added.

“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 customised 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,” said Pallak Seth, executive vice chairman.

“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 $2.5 billion topline in the next 3-5 years,” said Sanjay Jain, group chief executive officer.

Fibre2Fashion News Desk (DP)