Oh ok. In that case, I might look at this as a harbinger of good news. Only one thing that can make them raise funds, in my opinion - concrete headway into US market . But yes, better to seek out mgt reasoning.
Good Q2 results.
Hi @Chins , Great write up on this company.
I have few questions on the numbers: If anyone can help here:
Design led sourcing segment:
Should One think it has happened because of JV turnaround of margins from negative to 4 - 5% margins ? 80 - 300cr pat in last 3 years ? Design led sourcing PBT are sustainable that means this 300cr PAT will be sustainable going forward ?
Coming to Brand Management and SAAS:
Brand Management → As you said it is 250-300CR EBITDA Opportunity.
SAAS → 200 cr PAT Annually.
How this numbers are achievable ?
For example: Attaching the below screenshot:
It says potential revenue of 350 - 450cr annually and PBT of 18-20% i.e 70 - 100 CR PBT.
Likewise, on Ted Baker monthly revenue is shown below:
Roughly if I take up monthly 50-60cr so annually it comes around: 350-400cr.
and PBT as - 35cr.
Based on current deals: SAAS and Ted baker deal ~ New offerings it is on annualised basis PBT of => 35 + 70cr => 100cr - 120cr PBT Annually.
Above are for Fy24/25/26 annually for current order wins.
For long term horizon: (Not looking on QoQ)
On 500cr-1000cr PAT in next 3 to 5 years.
According to me, this can be achieved with more deals. Current deals won’t make them achieve 1000cr PAT and their top 10 verticals needs to be scaled up. That needs to be seen. (More revenue from poetic gem etc…)
Huge respect for Pallak to create PDS like platform. His journey has been inspiring. Looking forward as Pallak said, company is at inflection point.
Thanks for writing the thread @Chins Your work on this has been amazing !!!
Anywhere you see numbers aren’t making up. Do correct me.
any specific reason why the are degrowing from last 3 quarters be it in sales or in profits YoY?
Slow-down in Export market. Compare result for all textile companies .
Saurabh Mukharjea has added PDS ltd to the “Little Champs” Portfolio. Full interview here which covers PDS ltd among other cos
Link to the video
Can anyone reply what could be impacts of Bangladesh workers unrest , which resuled almost 85% export from here. Since company having major present in Bangladesh.
@Chins thanks for the work you put in!
Was trying to do some digging from my end as well, could you point me to the source where management talks about 1000cr PAT by 2027
The cost of acquisition and the PAT of the acquired entity are not commensurate ?
As per the disclosure its a subsidiary of ASDA stores. Probably a sourcing arm based in Turkey. It may not have any assets. I think it would be more like a sourcing contract. As for ASDA, the PAT mentioned may be a very small amount, which would make sense for them to outsource the activity to a specialised company like PDS.