Revenue at ₹2,580 cr and Gross Margins at 20.8%, expansion of 333bps
Mumbai, February 7th, 2024: PDS Limited, the global fashion solutions and 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 Q3FY24.
Consolidated Financial Results Q3 & 9M FY24: (₹ in crs, unless mentioned otherwise)
| Particulars Q3 FY24 Q3 FY23 (Y-o-Y) Q2 FY24 |
| Gross Merchandise Value 3,868 2,950 31% 3,790 |
| Revenue from Operations 2,580 2,574 0% 2,463 |
| Gross Profit 537 450 19% 539 |
| Gross Margin% 20.8% 17.5% 333 bps 21.9% |
| EBIDTA 75 132 -43% 136 |
| EBIDTA Margin% 2.9% 5.1% -223 bps 5.5% |
| PAT* 25 93 -72% 88 |
| PAT Margin% 1.0% 3.6% -261 bps 3.6% |
*9M FY23 includes one time gain from sale of real estate which is adjusted in PAT for comparable Y-o-Y numbers Key Financial Highlights 9M FY24
▪ Gross Merchandise value increased y-o-y by 19% to ₹10,724crs o SAAS business delivering +260% growth in the 9M FY24 o Agency business delivering +90% growth in the 9M FY24
| 9M FY24 9M FY23 (Y-o-Y) |
| 10,724 8,978 19% |
| 7,157 7,835 -9% |
| 1,472 1,317 12% |
| 20.6% 16.8% 375 bps |
| 278 327 -15% |
| 3.9% 4.2% -28 bps |
| 137 221 -38% |
| 1.9% 2.8% -90 bps |
▪ Consolidated topline of ₹7,157crs with gross margins of 20.6%, expansion of 375bps ▪ Reported EBIDTA of ₹278crs with EBIDTA margin of 3.9%
▪ PAT amounted to ₹137crs; 9MFY23 PAT included onetime gain from real estate hence not comparable y-o-y
Outlook
The global economy stands at a crucial crossroads, presenting both challenges and opportunities. As the World Bank forecasts another year of modest growth, companies must adeptly maneuver through the economic and geopolitical landscapes across various regions. Despite the challenges, there’s cautious optimism due to the resilience of the US economy and inflation rates moving closer to central banks’ targets worldwide. Though recovery is kicking in later than anticipated, there are strategic collaboration opportunities that are up for discussion. Considering the initiatives undertaken in the last 18-24 months and the emerging opportunities on the horizon, we believe we are well-positioned for a resurgence with optimism.
Key Business Highlights
PDS expanding our Manufacturing Footprint in Sri Lanka
▪ Acquired 26% stake in Nobleswear Pvt Ltd. through Norlanka Manufacturing Ltd. ▪ Specialized manufacturer of children’s wear, casual wear, knit and woven products. ▪ Three state-of-the-art facilities across Sri Lanka- focused on quality, ethical manufacturing, and sustainability.
▪ Right to acquire an additional 24% stake at the same valuation over the next three years ▪ Nobleswsear Key Financials FY23 Topline of ₹138cr, EBITDA ₹15cr and PAT of ₹11cr
Commenting on the business updates Pallak Seth, Executive Vice Chairman, said, “We view the current quarter as a mere blip in PDS’s ongoing journey. The array of opportunities in our pipeline, coupled with the recent addition of top talent, instills confidence that we are well-prepared to capitalize on strategic opportunities emerging within the global fashion value chain. Our focus remains steadfast on achieving sustainable, long-term growth, as evidenced by our carefully planned strategic investments throughout the year. We are unwavering in our commitment to becoming the preferred and innovative solutions provider across the fashion value chain.”
Reflecting on the Company’s performance for Q3 FY24 and 9M FY24, Sanjay Jain, Group CEO commented, “While this quarter proved to be subdued, we are poised for anticipated growth in the latter part of the year. We have refrained from implementing any cost optimization measures as we maintain confidence in the recovery of our business which is reflected in the margins. Our focus remains on fortifying our position across the entire fashion value chain while driving sustainable growth trajectories for the benefit of all our stakeholders.”
About PDS Limited: (www.pdsltd.com)
PDS Limited is a global fashion infrastructure platform offering product development, sourcing, manufacturing, and distribution for major brands and retailers worldwide handling over $1.5 billion of Gross Merchandise Value. The Company operates a vast global network covering over 60 offices in 22 countries, with over 3,900 employees and 6,800 factory associates worldwide. PDS also offers a bespoke end-to-end outsourcing solution, engaging dedicated talent and infrastructure as an extended arm of retailers and brands. The Company reported consolidated revenues of ₹10,577cr in FY23.
PDS is listed on leading stock exchanges in India, BSE Ltd. (Scrip Code: 538730) and the National Stock Exchange of India Ltd (Scrip Code: PDSL). Follow us on LinkedIn
For more information contact:
Ishita Mookherjee
(Corporate Communications)
Kiwishka Prasad
PDS Limited Concept Public Relations Tel: +91 9819838566 Tel: +91 7506861969 E-mail: ishita.mookherjee@pdsltd.com Email: kiwishka@conceptpr.in
DISCLAIMER:
Certain statements that are made in the Press Release may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like significant changes in the economic environment in India and overseas, tax laws, inflation, litigation, etc. Actual results might differ substantially from those expressed or implied. PDS Limited. will not be in any way responsible for any action taken based on such statements and discussions and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.