Slide 1: Exchange filing cover letter for investors' presentation
PDSL/SE/2022-23/210 January 24, 2023 Listing Department Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1 Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (E), Dalal Street, Mumbai -400 051 Mumbai- 400001 Scrip Symbol: PDSL Scr
Slide 2: Investor Update Q3 FY23 and 9M FY23
Investor Update Q3 FY23 and 9M FY23 January 2023
Slide 3: Safe Harbour
Safe Harbour This presentation has been prepared by PDS Limited* (“PDS”, “the Company”) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied should n
Slide 4: Contents
Contents 01 Power Of The PDS Platform 02 Key Business Updates 03 Performance Overview 04 Annexures 3
Slide 5: Key Financial Highlights for the Nine Months (9M FY23)
Key Financial Highlights for the Nine Months(9M FY23) $ 982mn $ 165mn $ 41mn $ 31mn (₹7,835cr) (₹1,317cr) (₹327cr) (₹250cr) 29% consolidated topline growth Gross Margin: 16.8% Margin 46% EBITDA growth | 21% increase in PAT Margin: 4.2% ₹ 15.97 $ 3mn 0 Days (₹27cr) Basic EPS Net Debt Net Working Capi
Slide 6: Power of the PDS Platform
OWER OF THE PDS PLATFORM Za _
Slide 7: PDS - India's Largest B2B Apparel Company
PDS - India’s Largest B2B Apparel Company Uniquely positioned to garner scale in India’s fashion & apparel value chain ❑ PDS is India’s largest multinational apparel company in terms of size of business(1) 01 with global operations ❑ Operates through a unique and asset light global platform built to
Slide 8: Who are we?
Who are we? Global Fashion Infrastructure Company with customized solutions to retailers & brands Revenues FY21-22: $1.2bn Design Led Design-Led Sourcing as a Sourcing, Manufacturing Brands Sourcing Service 91% • Owned Manufacturing • 550+ Compliant partnered • Managing entire sourcing • In – House
Slide 9: Unique Business Model to Deliver Stakeholders Value
Unique Business Model to Deliver Stakeholders Value Asset Light Platform Driving high volumes and delivering high ROCEs Curated Service Offering Design to Delivery offiering | Sourcing | Manufacturing | Sourcing as a Service Global Footprint Diversified base of Customers and Vendors enabling balanci
Slide 10: Key Business Updates
KEY BUSINESS UPDATES
Slide 11: Headwinds expected in short term, medium to long term outlook strong
Headwinds expected in short term, however, medium to long term outlook continues to be strong Macro Economic headwinds continue to impact the industry; 01 Demand has softened due to high levels of inventories Cost of raw material and freights 02 have softened The excess capacity with factories 03 is
Slide 12: Macro Economic Factors Driving the Industry
Macro Economic Factors Driving the Industry PDS navigating cautiously and continues to invest to augment its capabilities Easing Inflation Strengthening of USD US Consumer Price Index (CPI) Movement over the last 9 months While CPI is showing a declining trend, it is March 22 June 22 September 22 De
Slide 13: Investing and Building Manufacturing Capabilities (1/2)
Investing and Building Manufacturing Capabilities (1/2) Installation of Wash Plant at Bangladesh Joining hands with impact focused Netherlands based Good Fashion Fund 1. Progress Apparels is based in Adamjee EPZ in Dhaka Bangladesh manufacturing approximately 900,000 units per month 2. Wash plant ha
Slide 14: Investing and Building Manufacturing Capabilities (2/2)
Investing and Building Manufacturing Capabilities (2/2) New Centralised Cutting Plant at Norlanka, Sri Lanka 1. Norlanka, Sri Lanka installed a new centralised cutting plant with a capacity of cutting 250,000 pieces a day for babywear 2. Plant is operational with a digitalized and integrated system
Slide 15: Investing in Operationalising the ASDA setup
Investing in Operationalising the ASDA setup Catering to Sourcing as a Service Agreement for $350mn merchandise value 14
Slide 16: Investing in Creating "Great Place to Work"
Investing in Creating “Great Place to Work” Testament to the people policies and culture of the organization PDS Limited (India) & Norlanka Manufacturing (Sri Lanka) certified as a ‘Great Place to Work’ by GPTW, India and Sri Lanka respectively 15
Slide 17: Performance Overview
PERFORMANCE OVERVIEW Quarter and Nine Months ended 31st December 2022 16
Slide 18: Key Financial Highlights for this Quarter (Q3 FY23)
Key Financial Highlights for this Quarter (Q3 FY23) $ 312mn $ 55mn $ 16mn $ 11mn (₹2,574cr) (₹450cr) (₹132cr) (₹93cr) 15% consolidated topline growth Gross Margin: 17.5% | ↑86bps 27% EBITDA growth | 15% increase PAT Margin: 5.1% ₹ 5.94 38% 31% Basic EPS ROCE ROE Note: ROCE is based on Net Capital Em
Slide 19: Performance in Q3 over last 5 years
Performance in Q3 over last 5 years Consistently delivered growth & profitability Margin % 1 Sales (₹ cr) 2 Gross Profit ₹ cr) 450 2,574 2,232 371 296 1,626 1,491 1,437 240 224 1.7x 15.0% 17.5% 2.0x Q3 FY19 Q3 FY20 Q3 FY21 Q3 FY22 Q3 FY23 Growth Q3 FY19 Q3 FY20 Q3 FY21 Q3 FY22 Q3 FY23 Growth 3 EBITD
Slide 20: Revenue Break-up and Margin Thereof for 9M FY23
Revenue Break-up and Margin Thereof for 9M FY23 Category Wise Split Geography Wise Split Men’s Wear Men 's wear 39% Europe 26% Women’s Asia & Middle Wear Ladies wear 34% East 9% UK Children Children we ar 20% 46% Wear Australia 1% Essentials 2% Ess entials Wear North America % of Total Revenue 15% O
Slide 21: Investment in PDS Ventures, Real Estate & others
Investment in PDS Ventures, Real Estate & others PDS Investment Portfolio ₹376cr | $45mn % of total PDS 22% gross capital employed 8% 5% 10% Venture Tech Direct Treasury Investments (35%) Real Estate & Others (22%) Investments (44%) ₹131cr | $16mn ₹81cr | $10mn ₹164cr | $20mn Note: Excludes HK real
Slide 22: 9M FY23 Performance Across Segments
9M FY23 Performance Across Segments PDS Venture Tech Sourcing Manufacturing Investments# PDS Consolidated $940mn | ₹7,497cr $63mn | ₹502cr $0.4mn |₹3cr $982mn Revenue Revenue captured in Other up 29% vs LY up 32% vs LY Income ₹7,835cr EBIT $34mn | ₹274cr $2.6mn | ₹21cr $3mn | ₹24cr $40mn |₹318cr Gai
Slide 23: Consolidated Profit & Loss (Quarter)
Consolidated Profit & Loss For the Quarter ended December Quarter ended Quarter ended Q3 Growth Quarter ended Year Ended ₹ in cr, unless mentioned otherwise Particulars 31-Dec-22 31-Dec-21 (Y-o-Y) 30-Sep-22 31-Mar-22 Key Highlights Income from Operations 2,574 2,232 15% 2,921 8,828 COGS 2,124 1,861
Slide 24: Consolidated Profit & Loss (Nine Months)
Consolidated Profit & Loss For the Nine Months ended December Nine Months ended Nine Months ended 9M Growth Year Ended ₹ in cr, unless mentioned otherwise Particulars 31-Dec-22 31-Dec-21 (Y-o-Y) 31-Mar-22 Income from Operations 7,835 6,053 29% 8,828 Key Highlights COGS 6,518 5,040 29% 7,396 1. Incom
Slide 25: Normalized PBT in Q3FY23 and 9M FY23
Normalized PBT in Q3FY23 and 9M FY23 ₹ in cr, unless mentioned otherwise Quarter ended Quarter ended 9M ended 9M ended Particulars 31-Dec-22 31-Dec-21 31-Dec-22 31-Dec-21 Income from operations 2,574 2,232 7,835 6,053 PBT 99 85 271 217 ESOP Cost considered as % PBT Margin 3.9% 3.8% 3.5% 3.6% operati
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet ₹ in cr, unless mentioned otherwise As on As on As on As on As on As on Particulars Particulars 31-Dec-22 30-Sep-22 31-Mar-22 31-Dec-22 30-Sep-22 31-Mar-22 Non-Current Assets 883 822 787 Calculated basis LTM P&L items Current Assets 2,357 2,488 2,611 Inventory Days 15 15 1
Slide 27: Consolidated Cash Flow
Consolidated Cash Flow ₹ in cr, unless mentioned otherwise Nine Months ended Nine Months ended Nine Months ended Nine Months ended Particulars Particulars 31-Dec-22 31-Dec-21 31-Dec-22 31-Dec-21 A. Cash Flow from Operating Activities C. Cash Flow from Financing Activities Profit before tax 271 217 P
Slide 28: For Further Information, please contact
For Further Information, please contact Abhishekh Kanoi Head of Legal & Company Secretary abhishekh.kanoi@pdsltd.com Reenah Joseph Head Corporate Finance & Investor Relations Reenah.Joseph@pdsltd.com PDS Limited Together we’re building a better, (erstwhile PDS Multinational Fashions Limited) more su
Slide 29: Annexures
aia Annéxures*®”
Slide 30: PDS Giving Back to the Society
PDS GIVING BACK TO THE SOCIETY 29
Slide 31: Investing in Our Ecosystem
Investing in Our Ecosystem Nearly 90% of the workforce in our Bangladesh facilities are women Initiatives at PDS manufacturing facility in Bangladesh (Green Smart Shirts) Various initiatives like Shwapno Project, Pre-primary school for factory associates’ children, Transport facilities, etc taken fo
Slide 32: Making difference in our Communities
Making difference in our Communities Soham*- Efforts toward training adults and schooling children in Hyderabad and Dhaka Facilitating children with a platform to acquire knowledge on various educational fields with active participation in extra curricular activities and vocational training program
Slide 33: PDS signatory to United Nations Global Compact
PDS signatory to United Nations Global Compact Voluntary Initiative based on CEO’s commitment to implement universal sustainability principles 95,581 Public Reports 21,218 162 Participants Countries Committed to support the 10 principles of the UN Global Compact Source- https://www.unglobalcompact.o
Slide 34: Financial Performance
Financial Performance (Figures in $mn) 33
Slide 35: Performance in Q3 over last 5 years ($ mn)
Performance in Q3 over last 5 years Consistently delivered growth & profitability Margin % 1 Sales ($ mn) 312 2 Gross Profit ($ mn) 55 298 50 218 40 214 204 32 34 1.5x 15.1% 17.5% 1.7x Q3 FY19 Q3 FY20 Q3 FY21 Q3 FY22 Q3 FY23 Growth Q3 FY19 Q3 FY20 Q3 FY21 Q3 FY22 Q3 FY23 Growth 3 EBITDA ($ mn) 4 PAT
Slide 36: Consolidated Profit & Loss (Quarter, US$)
Consolidated Profit & Loss For the Quarter ended December Quarter ended Quarter ended Q3 Growth Quarter ended Year Ended US$ in mn, unless mentioned otherwise Particulars 31-Dec-22 31-Dec-21 (Y-o-Y) 30-Sep-22 31-Mar-22 Key Highlights Income from Operations 312.4 298.0 5% 366.8 1,184.8 COGS 257.6 248
Slide 37: Consolidated Profit & Loss (Nine Months, US$)
Consolidated Profit & Loss For the Nine Months ended December Nine Months ended Nine Months ended 9M Growth Year Ended US$ in mn, unless mentioned otherwise Particulars 31-Dec-22 31-Dec-21 (Y-o-Y) 31-Mar-22 Income from Operations 982.1 815.0 21% 1,184.8 Key Highlights COGS 817.0 678.7 20% 992.6 Gros
Slide 38: Consolidated Balance Sheet (US$)
Consolidated Balance Sheet US$ in mn, unless mentioned otherwise As on As on As on As on As on As on Particulars Particulars 31-Dec-22 30-Sep-22 31-Mar-22 31-Dec-22 30-Sep-22 31-Mar-22 Non-Current Assets 106.7 101.0 103.8 Calculated basis LTM P&L items Current Assets 284.9 305.8 344.6 Inventory Days
Slide 39: Normalized PBT in Q3FY23 and 9M FY23 (US$)
Normalized PBT in Q3FY23 and 9M FY23 US$ in mn, unless mentioned otherwise Quarter ended Quarter ended 9M ended 9M ended Particulars 31-Dec-22 31-Dec-21 31-Dec-22 31-Dec-21 Income from operations 312 298 982 815 PBT 12 11 34 29 ESOP Cost considered as % PBT Margin 3.9% 3.8% 3.5% 3.6% operational in
Slide 40: Consolidated Cash Flow (US$)
Consolidated Cash Flow US$ in mn, unless mentioned otherwise Nine Months ended Nine Months ended Nine Months ended Nine Months ended Particulars Particulars 31-Dec-22 31-Dec-21 31-Dec-22 31-Dec-21 A. Cash Flow from Operating Activities C. Cash Flow from Financing Activities Profit before tax 32.7 29