Growth momentum back, PDS Reports 30% Surge in Order Book
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 FY24.
PDS Limited is a global fashion infrastructure platform offering product development, sourcing, manufacturing, and distribution for major brands and retailers worldwide handling over $1.8 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 ₹10,373cr in FY24.
In Fiscal Year 2024, recovery was projected to gain momentum in the latter part of the year despite various challenges encountered by the industry. Despite facing headwinds such as demand pressures, macroeconomic factors, and geopolitical conflicts, our core business remained resilient. In anticipation of the forthcoming recovery, operational expenses remained consistent and increased as usual. However, elevated interest rates resulted in higher interest costs. Additionally, opportunities emerged within the retail sector due to consolidation, prompting PDS to strategically invest in new verticals and teams. PDS invested ~₹100cr in teams and strategic opportunities which were accounted as expenses in the P&L, both at the platform and vertical levels. These investments were diversified, spanning design-led sourcing to broaden the reach across different regions and product categories, while also fortifying the procurement network. Additionally, resources were directed towards augmenting brand management capabilities. The Company anticipates that these investments will fuel growth and enhance profitability in the medium to long run.
Speaking on the developments during the year, Pallak Seth, Executive Vice Chairman, said, “In light of the current year’s performance, we perceive it as merely a transient phase in PDS’s continuous evolution. The disruptions being witnessed in the fashion landscape are unveiling numerous promising prospects, prompting us to expand our talent pool and capabilities to seize these opportunities. We are fortified with confidence in our capacity to harness strategic advantages within the global fashion value chain. Our paramount goal remains consistent: to position ourselves as the foremost and innovative solutions provider throughout the fashion value chain.”
Assessing the Company’s performance throughout the fourth quarter of Fiscal Year 2024, as well as the year in its entirety, Sanjay Jain, Group CEO, shared insights, stating, “As we reflect on our performance for both Q4 FY24 and the fiscal year as a whole, it’s evident that our journey has been marked by challenges amidst an environment of tepid demand. However, we are encouraged by the uptick in growth witnessed during the final quarter of the year. Looking ahead, our focus is squarely set on maximizing returns from the strategic investments made, with a keen emphasis on fostering synergies across our operations. We remain dedicated to unlocking the full potential of the PDS platform and leveraging synergies to drive sustainable growth in the years to come.“
