Pds Limited · NSE:PDSL
Pds — Q4 FY2024 Earnings Presentation
47 slides from Pds's earnings presentation, May 14, 2024
Slide 1: Cover letter to stock exchanges
PDS/SE/2024-25/18 May 14, 2024 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 Scrip Cod
Slide 2: Investor Presentation Q4 & FY24
INVESTOR PRESENTATION Q4&FY24 M AY 2 0 2 4
Slide 3: Safe Harbour
PDS LIMITED Safe Harbour The Presentation is to provide the general background information about the Company’s activities as a t the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommenda
Slide 4: Table of Contents
01 PDS INVESTMENT HIGHLIGHTS 02 KEY QUARTERLY HIGHLIGHTS AND PERFORMANCE Table of 04 / 13 OVERVIEW 14 / 28 Contents 03 FY 2025 OUTLOOK 04 05 INDUSTRY OUTLOOK ANNEXURES 29 / 31 32 / 34 35 / 45
Slide 5: PDS Investment Highlights
01 PDS Investment Highlights 01/ WELL POISED TO DRIVE SCALE, WITH P R O F I TA B I L I T Y & H I G H R E T U R N S 02/ D I S R U P T I N G T H E A P PA R E L I N D U S T R Y F O R L E A D I N G B R A N D S A N D R E TA I L E R S 03/ P D S ’ 4 D I S T I N C T VA LU E - B A S E D S O LU T I O N S 04/
Slide 6: Well Poised to Drive Scale, with Profitability & High Returns
PDS LIMITED Well Poised to Drive Scale, with Profitability & High Returns 1• Disrupting the apparel & homeware industry via customized sourcing & manufacturing services for brands and retailers 2• Well-positioned within the growing apparel & homeware industry & is posed to benefit from the tailwinds
Slide 7: Disrupting the apparel industry for leading brands and retailers
PDS LIMITED Disrupting the apparel industry for leading brands and retailers by providing customized end-to-end apparel solutions Who • PDS Limited is an end-to-end fashion design, sourcing and manufacturing service provider that looks to address is PDS? pain points across the value chain for retail
Slide 8: PDS' 4 Distinct Value-based Solutions Serve a Diversified range
PDS LIMITED PDS’ 4 Distinct Value-based Solutions Serve a Diversified range of Global brands; its Venture arm is a Watchtower for Innovation INCREASING CUSTOMER STICKINESS 1 2 3 4 5 MANUFACTURING DESIGN-LED SOURCING SOURCING AS A SERVICE BRAND MANAGEMENT PDS VENTURES Direct manufacturer with 3 Broad
Slide 9: Changing Industry Dynamics: Key opportunities/challenges facing retailers and brands
PDS LIMITED Changing Industry Dynamics: Key opportunities/challenges facing retailers and brands NEARSHORING RISING DEMAND FOR GEOPOLITICAL CHALLENGES ESCALATING COST AND NEED FOR TREND-DRIVEN INNOVATION (E.G., TRADE WARS AND PRESSURES SPEED-TO-MARKET AND DESIGNS GEOPOLITICAL CONFLICTS) STRONGER EMP
Slide 10: Prioritize Engines of Growth and Poised to Scale Profitably
PDS LIMITED Prioritize Engines of Growth and Poised to Scale Profitably North America GEOGRAPHY FOCUS Europe India & SEA Brazil Others (USA & Canada) PRICE SEGMENT Value Mass Premium Luxury Supermarkets & CUSTOMER PROFILE Department stores Brand License Specialty Retail Fast Fashion D2C Discounters
Slide 11: Strengthening Capabilities & Investing in Teams to Drive Growth
PDS LIMITED Strengthening Capabilities & Investing in Teams to Drive Growth HAROLD TILLMAN MARK GREEN DANNY SANTANDER KRISHANTHA RAJAPAKSHA PDS Global Ambassador Executive Director, North America Central America & Mexico North America Strategy HATUN AYTUG KATHERINE LOPEZ NIHAR KANTI DAS MANSI AGRAWA
Slide 12: Unique ecosystem that attracts global entrepreneurs
PDS LIMITED Unique ecosystem that attracts global entrepreneurs, in turn driving business & customer engagement $Xmn 2024 vertical revenue* XX+ Years with PDS PDS’ unique value … attracts & retains experienced entrepreneurs to build meaningful … delivering proposition… businesses significant growth
Slide 13: Board of Directors: Experienced and Diverse
PDS LIMITED Board of Directors: Experienced and Diverse, Providing Robust Governance Legal Technology Commercial Promoter Group Industry Expertise Finance Expertise Expertise Expertise Expertise DR. DEEPAK PALLAK PAYEL YAEL ROBERT MUNGO PARTH NISHANT BG SANDRA KUMAR SETH SETH SETH GAIROLA SINCLAIR P
Slide 14: Seasoned Leadership Team
PDS LIMITED Seasoned Leadership Team ensuring PDS’ success in an ever-evolving industry SANJAY JAIN RAHUL AHUJA RAAMANN AHUJA PAUL WRIGHT SAURABH SAXENA Group CEO Group CFO Group CHRO Group ESG Director Group CIO Six sigma black belt, 30+ years of 27+ years 25+ years of 35+ years of 20+ years of exp
Slide 15: Key Quarterly Highlights and Performance Overview
02 KEY QUARTERLY HIGHLIGHTS AND PERFORMANCE OVERVIEW 10/ REFLECTING ON FY2024 11/ FINANCIAL SNAPSHOT 12/ REVENUE BREAK-UP 13/ P R O F I T A N D LO S S ( C O N S O L I DAT E D ) 14/ B A L A N C E S H E E T ( C O N S O L I DAT E D ) 15/ S E G M E N TA L P E R F O R M A N C E 16/ I N V E S T I N G I N
Slide 16: Reflecting on FY2024: A Year of Innovation and Resilience
PDS LIMITED Reflecting on FY2024: A Year of Innovation and Resilience 1. FY24 witnessed the convergence of demand pressures, macroeconomic influences, and geopolitical conflicts with recovery expected towards the latter half of the year 2. Despite macro-disruptions, PDS has continued to make strateg
Slide 17: Financial Snapshot (Q4 FY24 | FY24)
PDS LIMITED Financial Snapshot (Q4 FY24 | FY24) ₹ IN CRORE AND $ IN MN, UNLESS MENTIONED OTHERWISE NORMALISED GMV REVENUE EBITDA ## PAT ₹4,526 ₹3,215 ₹157 ₹65 ($545) ($387) ($19) ($8) 19% 25% 81bps 105 bps QoQ QoQ QoQ QoQ EBITDA MARGIN: 5.1% PAT MARGIN: 2.0% Q4 FY24 Q4 FY24 Q4 FY24 Q4 FY24 ₹15,048 ₹
Slide 18: FY2024 Takeaways on Performance
PDS LIMITED FY2024 Takeaways on Performance FULL YEAR FY2024 SEQUENTIAL (Q4 VS Q3) GROWTH GMV up by 25% GMV up by 19% Revenue down by 1.9% Revenue up by 25% (minimized impact of tough industry situation) EBITDA MARGIN 4.7% to 5.0% 4.2% to 5.1% (before new investments in incubation) EBITDA MARGIN 4.3
Slide 19: Revenue Break-up: Top Verticals along with margins
PDS LIMITED Revenue Break-up: Top 10 Verticals along with margins REVENUE PBT PBT MARGIN VERTICALS KEY COUNTRY FY24 FY23 FY24 FY23 FY24 FY23 UK 266 289 13.9 11.6 5.2% 4.0% UK 164 165 6.5 5.0 3.9% 3.0% Twins UK 135 160 5.7 11.1 4.2% 6.9% German y 112 108 4.1 4.1 3.7% 3.8% UK (Sri Lanka focussed) * *
Slide 20: Revenue Break-up: Geography & Category (FY24)
PDS LIMITED Revenue Break-up: Geography & Category (FY24) GEOGRAPHY WISE SPLIT CATEGORY WISE SPLIT 33% 38% 36% 38% 14% Men’s Wear Ladies Wear 13% 03% 21% 05% UK Europe Asia & Middle East North America Others Childrenswear Others Note: Revenue Breakup based on Broad Estimates Note: Revenue Breakup ba
Slide 21: Profit and Loss (Consolidated in ₹Cr)
PDS LIMITED Profit and Loss (CONSOLIDATED IN ₹CR) QUARTER TWELVE MONTH PARTICULARS ENDED ENDED (₹ IN CR, UNLESS MENTIONED OTHERWISE) 31-Mar-24 31-Dec-23 31-Mar-23 31-Mar-24 31-Mar-23 C O M M E N TA R Y GROSS MERCHANDISE VALUE 4,526 3,800 3,135 15,048 12,059 • GMV increased by 19% Q-o-Q and 25% in th
Slide 22: Normalised EBITDA (Consolidated in ₹Cr)
PDS LIMITED Normalised EBITDA (CONSOLIDATED IN ₹CR) TWELVE MONTH QUARTER ENDED PARTICULARS (₹ IN CR, UNLESS MENTIONED OTHERWISE) ENDED 31-Mar-24 31-Dec-23 31-Mar-23 31-Mar-24 31-Mar-23 INCOME FROM OPERATIONS 3,215 2,580 2,742 10,373 10,577 % GROWTH 25% -2% EBITDA 124 75 133 402 459 % EBITDA MARGIN 3
Slide 23: Investing in Growth and Expanding Capabilities
PDS LIMITED Investing in Growth and Expanding Capabilities In Line with PDS’ Defined Strategy for Growth and Expansion AMOUNT INVESTED SNO KEY FOCUS AREAS OF GROWTH ($MN | ₹CR) POTENTIAL IMPACT IN FUTURE A Expanding Core Operations: 1 Design Led Sourcing $2.9 | ₹24 Opportunity to drive over $100mn r
Slide 24: A look at some of our recent investments
PDS LIMITED A look at some of our recent investments EST: Q3 FY21 EST: Q4 FY21 EST: Q2FY23 BUSINESS Eric Leddel Gaurav Pandey Anuj Banaik HEAD • 25 years in global supply chain • Earlier part of Must Garments • +27 years associated with PDS BACKGROUND • Previously managing Homes division of Li & Fun
Slide 25: Balance Sheet (Consolidated in ₹Cr)
PDS LIMITED Balance Sheet (CONSOLIDATED IN ₹CR) A S ON A S ON P A R T IC ULA R S ( ₹ IN C R , UNLESS M ENTIONED OTHERWISE) P A R T IC ULA R S 3 1- M a r- 2 4 3 1- D e c - 2 3 3 1- M a r- 2 3 3 1- M a r- 2 4 3 1- D e c - 2 3 3 1- M a r- 2 3 NON-CURRENT ASSETS 1,111 1,025 886 CURRENT ASSETS 2,951 2,58
Slide 26: Cash Flow (Consolidated in ₹Cr)
PDS LIMITED Cash Flow (CONSOLIDATED IN ₹CR) F ULL Y E A R E N D E D F ULL Y E A R E N D E D P A R T IC ULA R S ( ₹ IN C R , UNLESS M ENTIONED OTHERWISE) P A R T IC ULA R S ( ₹ IN C R , UNLESS M ENTIONED OTHERWISE) 3 1- M a r- 2 4 3 1- M a r- 2 3 3 1- M a r- 2 4 3 1- M a r- 2 3 A. CASH FLOW FROM OPER
Slide 27: Segmental Performance at a Glance
PDS LIMITED Segmental Performance AT A GLANCE ₹ IN CRORE AND $ IN MN, UNLESS MENTIONED OTHERWISE S OURCIN G MAN UFACT U RIN G PDS VEN TURES PDS AN D OTHERS CON S OLIDAT E D INVESTMENT IN PDS VENTURES, REAL ESTATE & OTHERS REVENUE REVENUE REVENUE REVENUE Y-o-Y Growth % Y-o-Y Growth % Y-o-Y Growth % Y
Slide 28: Proposed Dividend
PDS LIMITED Proposed Dividend H1 FY24 H2 FY24 PARTICULARS FY24 ACTUAL PROPOSED EPS PER SHARE 10.98 6.40 4.59 PAY-OUT RATIO OF EPS 43% 25% 69% DIVIDEND PER SHARE 4.75 1.60 3.15 FACE VALUE PER SHARE 2.00 2.00 2.00 DIVIDEND % 238% 80% 158% 27/ KEY QUARTERLY HIGHLIGHTS AND PERFORMANCE OVERVIEW INVESTOR
Slide 29: Investing in Key Strategic Locations
PDS LIMITED Investing in Key Strategic Locations INDIA UK PDS TOWERS, GURUGRAM, INDIA SRI LANKA POETICGEM’S NEW OFFICE IN UK, Located strategically in Watford close to key customers showcasing PDS’s NORLANKA’S NEW HQ AT COLPETTY, presence in UK. 3 Floors leased out in the illustrious Rotunda Buildin
Slide 30: FY2025 Outlook
03 FY2025 Outlook 17/ FY25: KEY PRIORITIES 18/ FY25 OUTLOOK
Slide 31: FY25: Key Priorities
PDS LIMITED FY25: Key Priorities GROWTH PRIORITIES OPERATIONAL & EXECUTION EXCELLENCE Growth is poised for a resurgence with a backdrop of cautious Stringent focus on execution optimism Key markets appear to be bottoming out & poised for growth Need to harness “Investments made in the expanding capa
Slide 32: FY25 Outlook
PDS LIMITED FY25 Outlook PDS SINCE FY2020 OUR PLAN FOR FY25 Topline CAGR 10,373 GMV expected to clock +20% growth 12% 6,648 $938mn $1,253mn Drive +10% growth in topline FY20 FY24 PAT | PAT Margin % 1.2% 2.0% Extract revenue & profit from the 203 investments made in the preceding years CAGR 26% 81 Bo
Slide 33: Industry Outlook and Opportunities
04 INDUSTRY OUTLOOK AND OPPORTUNITIES 19/ M AC RO E CON OM I C FAC TOR S DR I VI N G THE INDUSTRY 20/ INDUSTRY OUTLOOK
Slide 34: Macro Economic Factors Driving the Industry
PDS LIMITED Macro Economic Factors Driving the Industry C O S T P R E S S U R E S H AV E E A S E D B U T I N T E R E S T R AT E S A N D I N F L AT I O N C O N T I N U E TO E X E R T P R E S S U R E O N T H E D E M A N D E N V I R O N M E N T CONSUMER PRICE INDEX INTEREST RATE TREND APPAREL IMPORTS T
Slide 35: Industry Outlook
PDS LIMITED Industry Outlook N E A R T E R M U N C E RTA I N T Y, W I T H E N C O U R A G I N G S I G N S O F R E C O V E R Y I N T H E C O M I N G Y E A R , P R E D O M I N A N T LY F U E L L E D BY A R E S U R G E N C E I N C O N S U M E R S P E N D I N G GLOBAL APPAREL MARKET REACHED A TURNOVER
Slide 36: Annexures
05 ANNEXURES 21/ ABOUT PDS 32/ P R O F I T A N D LO S S ( C O N S O L I DAT E D i n $ M N ) 33/ B A L A N C E S H E E T ( C O N S O L I DAT E D I N $ M N ) 34/ C A S H F LO W ( C O N S O L I DAT E D I N $ M N )
Slide 37: PDS offers its Clients a set of Customized Solutions
PDS LIMITED PDS offers its Clients a set of Customized Solutions, Leveraging An Asset Light Platform and driven by Apparel Industry Entrepreneurs VALUE AND MASS PREMIUM PDS caters to over A 250 global retailers and brands…. VALUE CHAIN ….offering 4 MERCHANDISE RAW MATERIAL MANUFAC- QUALITY BRAND DES
Slide 38: Design-Led Sourcing
PDS LIMITED Design-Led Sourcing: Enabling customers to access quality designs & source products at competitive costs for their chosen categories MERCHANDISE RAW MATERIAL MANUFAC- QUALITY BRAND DESIGN SOURCING LOGISTICS WHOLESALE RETAIL PLANNING PURCHASING TURING ASSURANCE MARKETING CUSTOMER PAIN POI
Slide 39: Sourcing as a Service
PDS LIMITED Sourcing as a Service: Exclusive & independent set up for a retailer or brand with PDS acting as their sourcing arm MERCHANDISE RAW MATERIAL MANUFAC- QUALITY BRAND DESIGN SOURCING LOGISTICS WHOLESALE RETAIL PLANNING PURCHASING TURING ASSURANCE MARKETING CUSTOMER PAIN POINTS WHAT PDS IS D
Slide 40: Brand Management
PDS LIMITED Brand Management: End-to-end conceptualization, management and marketing of brands MERCHANDISE RAW MATERIAL MANUFAC- QUALITY BRAND DESIGN SOURCING LOGISTICS WHOLESALE RETAIL PLANNING PURCHASING TURING ASSURANCE MARKETING CUSTOMER PAIN POINTS WHAT PDS IS DELIVERING CASE STUDY In addition
Slide 41: Manufacturing: Specialty-focused in-house Capabilities
PDS LIMITED Manufacturing: Specialty-focused in-house Manufacturing Capabilities in Strategic Locations MERCHANDISE RAW MATERIAL MANUFAC- QUALITY BRAND DESIGN SOURCING LOGISTICS WHOLESALE RETAIL PLANNING PURCHASING TURING ASSURANCE MARKETING CAPABILITIES STRATEGIC RATIONALE • Better serve customers
Slide 42: PDS Ventures
PDS LIMITED PDS Ventures: Investments in innovative solutions in apparel, sustainability & circularity from design to consumer MERCHANDISE RAW MATERIAL MANUFAC- QUALITY BRAND DESIGN SOURCING LOGISTICS WHOLESALE RETAIL PLANNING PURCHASING TURING ASSURANCE MARKETING VC FUND WITH DIRECT INVESTMENT IN S
Slide 43: Profit and Loss (Consolidated in $Mn)
PDS LIMITED Profit and Loss (CONSOLIDATED IN $MN) QUARTER TWELVE MONTH PARTICULARS ENDED ENDED ($ IN MN, UNLESS MENTIONED OTHERWISE) 31-Mar-24 31-Dec-23 31-Mar-23 31-Mar-24 31-Mar-23 C O M M E N TA R Y GROSS MERCHANDISE VALUE 545 457 381 1,818 1,500 GROWTH (%) (Q-o-Q | Y-o-Y) 19.4% 21.2% • GMV incre
Slide 44: Normalised EBITDA (Consolidated in $Mn)
PDS LIMITED Normalised EBITDA (CONSOLIDATED IN $MN) QUARTER TWELVE MONTH PARTICULARS ($ IN MN, UNLESS MENTIONED OTHERWISE) ENDED ENDED 31-Mar-24 31-Dec-23 31-Mar-23 31-Mar-24 31-Mar-23 INCOME FROM OPERATIONS 387 310 333 1,253 1,316 % GROWTH 25.0% -4.8% EBITDA 15 9 16 49 57 % EBITDA MARGIN 3.8% 2.9%
Slide 45: Balance Sheet (Consolidated in $Mn)
PDS LIMITED Balance Sheet (CONSOLIDATED IN $MN) A S ON A S ON P A R T IC ULA R S ( $ IN M N , UNLESS M ENTIONED OTHERWISE) P A R T IC ULA R S 3 1- M a r- 2 4 3 1- D e c - 2 3 3 1- M a r- 2 3 3 1- M a r- 2 4 3 1- D e c - 2 3 3 1- M a r- 2 3 NON-CURRENT ASSETS 133 123 108 CURRENT ASSETS 354 310 271 IN
Slide 46: Cash Flow (Consolidated in $Mn)
PDS LIMITED Cash Flow (CONSOLIDATED IN $MN) F ULL Y E A R E N D E D F ULL Y E A R E N D E D P A R T IC ULA R S ( $ IN M N , UNLESS M ENTIONED OTHERWISE) P A R T IC ULA R S ( $ IN M N , UN LE S S M E N T IO N E D O T H E R WIS E ) 3 1- M a r- 2 4 3 1- M a r- 2 3 3 1- M a r- 2 4 3 1- M a r- 2 3 A. CAS
Slide 47: Thank You
C O N TA C T U S THANK YOU PDS LIMITED Unit No.971, Solitaire Corporate Park, Andheri-Ghatkopar Link Road, Andheri (E), Mumbai-400093, Maharashtra, India CIN: L18101KA2011PLC094125 Tel.: +91-22-41 441 100 Email: investors@pdsltd.com ABHISHEKH KANOI REENAH JOSEPH SNEHA SALIAN Head of Legal & Company