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Some interesting 5 year guidance in the concall.
Not invested studying

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Some questions (please excuse me if they are silly, I began studying PDS only recently):

1 HBS case mentioned 80% success rate- how has this number changed over time? One would expect it to rise as they learn from experience, and also as they enable collaboration between subsidiaries. Any idea whether this has happened?
2 What is the difference between design led sourcing and sourcing as a service?
3 Their average wallet share with top customers? How much of the customers’ design/sourcing is done by PDS?
4 Any update on sale of PDS tower (24 Cr book value)?
5 They mentioned investments raising 2nd and 3rd rounds at 2x valuation but have they had any exit events (M&A/IPO) in any venture tech investment?
6 Any answer on reason for doing unrelated venture tech investments like fertility clinic and indoor cycling?
7 Mr Pallak Seth’s LinkedIn says angel investor


Is this same as venture tech investments of PDS or are there any angel investments in personal capacity too?

Disc- no holdings as of now, tracking closely

PS: Kudos to @Chins on his excellent work on PDS!

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Great questions :slight_smile:

That was the point of a few posts just above. I’m tracking subsidiaries made after 2017 to understand if their CAGR / profile is different from subsidiaries formed in 2014. Will write an update after adding in FY22 annual report data.

Great question, and my next task in Q1FY23. Was hoping to meet management to ask them this instead of working it out myself, but I’ve been lazy. Please join me in working out their right to win globally, and data on your question, and how it’s changed in the last 5-6 years.

My current understanding is based of Q2FY22’s concall, where they discuss venture tech investments as selling points to clients, and proof of concepts for their sustainability initiatives. I’d be surprised if any of them delivered an exit, and treat that as a back of the mind optionality.

I completely forgot about this. Please bring pitchforks to the AGM on the 29th, or Q1’s concall :slight_smile:

I think if there were investments in a public capacity, it would show up on CrunchBase or Tracxn. Will dig deeper!

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Sharing some interesting snippets from interviews:

“I’d rather invest in people than plant and machinery-that has always been my motto”

(All Seth and done - by Richa Bansal - Fibre2Fashion)

(Interview, Face2face with Mr. Pallak Seth - Vice Chairman & Managing Director, PDS Multinational Group at Fibre2fashion)

(A case study in crisis management – What next for PDS Group? - Just Style)

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Did anyone attend the concall? Any notes?

78 bps improvement in gross margin
73cr EBITDA, 113% improvement, 102 bps improvement

ESOP charge 7 cr vs 2 cr y-o-y

12 crore investment in new business – expensed from P&L

Sourcing clocked 42% growth, 60cr EBIT, RoCE 42%

Manufacturing continues to be profitable (1.6% PAT margin)

Net Debt 77 crore, NWC increased from 2 days to 3 days

Will continue to focus on monetising non-core assets

Continue to focus on increasing US focus

China + 1 helping as people looking beyond China/Vietnam-Hong Kong relationship. Movement to sourcing from Bangladesh/Sri Lanka is helping PDS (one of the biggest reason is governance standard trust in PDS) fill up this vacuum. Vietnam also we are trying, we are late to the party, but doing not bad.

Whenever recession happens, we double in size as we help both retailers (one stop shop design free delivery) and factories (working capital + orders).

We have business, now with softening cotton and freight as well as currency depreciation, will see margin improvement.

80-90% budget is booked – strong orderbook – confident to meet guidance – cautious because of geopolitical issues

Seasonality of Q4 strongest – so QoQ not relevant

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