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PDS LIMITED Investor Presentation 2020
60265_rns_2020-08-28_19cd9091-f364-4e01-8802-8bf870c12e43.pdf
Investor Presentation
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PDS Multinational Fashions Limited
PDS/SE/2020-21/20 28th August, 2020
| The General Manager, | The General Manager, |
|---|---|
| Corporate Service Department | Listing Department |
| BSE Limited | National Stock Exchange of India Limited |
| P. J Tower, Dalal Street, Fort, | Exchange Plaza, Bandra Kurla Complex, |
| Mumbai-400001 | Bandra (East), Mumbai-400051. |
Script Code/ID: BSE: 538730; NSE: PDSMFL
SUB: INVESTOR PRESENTATION FOR QUARTER AND YEAR ENDED 31ST MARCH, 2020.
Dear Sir / Madam,
Please find attached herewith the Investor Presentation for the Quarter and Year ended 31st March, 2020 for the financial update to Investors of the PDS Multinational Fashions Limited.
Kindly take the same on record.
Thanking you For PDS Multinational Fashions Limited
B. Chandra Sekhara Reddy
Company Secretary & Head-Legal
Encl.: a/a
Together we're building a better, more sustainable supply chain Q4 & FY20 - Result Presentation
August 2020
1
Safe Harbor
Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forwardlooking statements. PDS Multinational Group will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
Note: Income represents Gross profit, which is actual receipt of payment for PDS Multinational Fashions
Table of Contents
Q4 & FY20 – CONSOLIDATED Highlights
335.4 302.0 1,098.7 947.6 Q4 FY20 Q4 FY19 FY20 FY19 Income (Rs. Crore) 109.3 82.1 186.0 111.6 Q4 FY20 Q4 FY19 FY20 FY19 EBITDA (Rs. Crore) 35.8 45.4 81.1 68.9 Q4 FY20 Q4 FY19 FY20 FY19 PAT (Rs. Crore) As a % of Income (Gross Profit) 33% 27% 17% 12% 11% 15% 7% 7%
Note: Income represents Gross profit, which is actual receipt of payment for PDS Multinational Fashions EBITDA excludes other income
4
| Abridged Profit & Loss Statement – | ||||||||
|---|---|---|---|---|---|---|---|---|
| Consolidated | ||||||||
| GROWTH | GROWTH | |||||||
| Particulars (Rs. Crore) | Q4 FY20 | Q4 FY19 | (Y-o-Y) | FY20 | FY19 | (Y-o-Y) | ||
| Income from Operations | 2,004.1 | 2,083.2 | -4% | 6,648.0 | 6,485.9 | 3% | ||
| Raw Material Cost | 1,668.7 | 1,781.1 | -6% | 5,549.3 | 5,538.3 | 0% | ||
| GrossProfit | 335.4 | 302.0 | 11% | 1,098.7 | 947.6 | 16% | ||
| Particulars (Rs. Crore) | Q4 FY20 | Q4 FY19 | GROWTH(Y-o-Y) | FY20 | FY19 | GROWTH(Y-o-Y) | ||
| 1 | Income (Gross Profit) | 335.4 | 302.0 | 11% | 1,098.7 | 947.6 | 16% | |
| Employee Expenses | 117.8 | 105.3 | 12% | 436.0 | 379.4 | 15% | ||
| Other Expenses | 108.3 | 114.6 | -5% | 476.8 | 456.6 | 4% | ||
| 82.1 | 33% | 186.0 | 111.6 | 67% | ||||
| 2 | EBITDA | 109.3 | ||||||
| EBITDA Margin (2/1) (%) | 33% | 27% | 540 bps | 17% | 12% | 510 bps | ||
| Other Income | -7.4 | -6.1 | NA | 26.5 | 16.1 | 65% | ||
| Depreciation | 16.8 | 7.6 | 122% | 52.2 | 26.3 | 98% | ||
| Finance Cost | 26.2 | 7.0 | 272% | 49.3 | 32.3 | 52% | ||
| Profit Beforeexceptional items & taxes | 58.9 | 61.5 | -4% | 111.0 | 69.1 | 61% | ||
| Add: Share of Profit/(Loss) of Associates | -2.4 | -1.2 | NA | -6.9 | -0.1 | NA | ||
| Add: Exceptional items | -13.6 | - | NA | -13.6 | - | NA | ||
| Profit Before Tax | 42.9 | 60.3 | -29% | 90.5 | 69.0 | 31% | ||
| Tax Expenses | 7.1 | 14.9 | -52% | 9.5 | 0.1 | 7425% | ||
| 3 | Profit AfterTax | 35.8 | 45.4 | -21% | 81.1 | 68.9 | 18% |
Note: Income represents Gross profit, which is actual receipt of payment for PDS Multinational Fashions.
Abridged Balance Sheet – Consolidated
| Particulars (Rs. Crore) | 31-Mar-20 | 31-Mar-19 | |
|---|---|---|---|
| a) Non-current Assets | 571 | 444 | |
| b) Current Assets | 1,809 | 1,728 | |
| -Inventories | 183 | 136 | |
| -Trade Receivables | 832 | 1,029 | |
| -Cash & cash equivalents | 350 | 241 | |
| -Other Bank Balances | 152 | 130 | |
| -Others | 291 | 193 | |
| Total Assets | 2,380 | 2,172 | |
| 611 | 499 | ||
| c) Total Equityd) Non-Current Liabilities | 80 | 18 | |
| 1,689 | 1,654 | ||
| e) Current Liabilities-Borrowings- | 746 | 690 | |
| Trade payablesOthers | 579363 | 748216 | |
| - | |||
| Total Liabilities | 2,380 | 2,172 | |
| Working Capital DaysInventory Days | 2012 | 89 | |
| Debtors Days | 46 | 58 |
Note: Income represents Gross profit, which is actual receipt of payment for PDS Multinational Fashions. EBITDA excludes other income
Q4 FY20 – Segment-wise Business Performance
| EBITDA Break-up (Rs. Crore) | Q4 FY20 | Q4 FY19 | GROWTH$(Y-o-Y)$ | FY20 | FY19 | GROWTH$(Y-o-Y)$ |
|---|---|---|---|---|---|---|
| Sourcing & Other | 99.7 | 78.7 | 26.8% | 228.4 | 181.4 | 25.9% |
| Manufacturing | $-11.4$ | $-2.6$ | 342.6% | $-29.5$ | $-53.7$ | $-45.0%$ |
| EBITDA Margins (Rs. Crore) | Q4 FY20 | Q4 FY19 | GROWTH(bps) | FY20 | FY19 | GROWTH(bps) |
|---|---|---|---|---|---|---|
| Sourcing & Other | 5.3% | 4.0% | 127 | 3.6% | 2.9% | 70 |
| Manufacturing | NM | NM | NA | NM | NM | NA |
Q4 FY20 - Business operations
- PDS witnessed healthy business operations in the start of Q4 FY20: Q4 FY20 began on a steady note for PDS Multinational Fashions. The Company witnessed stable demand and healthy client wins in the month of January 2020. However, the growing concerns around the spread of Covid-19 followed by lockdowns and restrictions in movement across Europe and Asia negatively affected the operating environment for the business and impacted company's sales during February and March 2020 • Despite challenging operating conditions, Income during Q4 FY20 stood at Rs. 335.4 crore, registering a steady increase of 11% Y-o-Y. FY20 Income higher by 16% to Rs. 1,098.7 crore • In compliance with government advisories, PDS Group temporarily suspended operations at its offices across India and implemented 'Work from Home' options • Similarly, on the international front as applicable in each country , PDS Group's offices in UK, Europe, America's, Middle East, and Asia were temporarily shut and implemented work from Home option along with required controls such as daily temperature checks, sanitisation, social distancing, using of masks in offices where employees were working
Operations:
Q4 FY20 - Business operations
- Manufacturing Business: At the PDS Group's manufacturing plants in Bangladesh, operations are temporarily suspended for about a month from March 2020. However, pursuant to requisite approvals from the concerned Government Authorities, manufacturing operations were resumed partially in the month of May 2020 • PDS continues to undertake all mandatory measures and implementing stringent SOPs for all its employees at the plants as per
- necessary guidelines Currently, PDS Group's manufacturing units are operating at lower capacity due to subdued demand, availability of labour due to social distancing restrictions. The Company expects to ramp-up utilization across manufacturing facilities as demand picks up in the coming months Sourcing Business: • The Company witnessed disruption across the supply chain due to port closures and restrictions in movement across markets. This, in turn, impacted sourcing business operations. • The Company continued to work closely with all business partners and distributors to ensure seamless deliveries and services to clients in these unprecedented times
Measured steps undertaken to minimize COVID-19 impact on business operations In light of the COVID-19 Pandemic and disruptions in operating environment, the Company has outlined the following focus areas to
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minimize the impact of the macro-environment on business operations, As an organization, PDS Multinational remains solid, with stable business operations. The management's primary focus is towards undertaking all necessary measures to ensure safety and well-being of its employees, business partners and communities during these trying times • In light of the current challenges, the Company's strategic intent and focus is towards, • Realigning efforts/resources to ensure solid client engagements • To meet all statutory liabilities and compliances across the group • Retain top talent to ensure the Group hits the ground running as soon as situation normalizes • To meet all banking commitments and debt obligations • Liquidity and cash flow position of the Group continues to be strong
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The Company's associations and contracts across its existing customer base continues to remain intact
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While there could be deferments or delays in order wins and supplies in Q1 FY21, the management is monitoring the situation on a daily basis and will undertake all necessary measures as directed by the concerned Governments and authorities, from time to time, to overall safeguard the interests of all customers to the best possible extent
Key Metrics – FY20
• *Customers with sales value more than USD 100K
• ~Australia & Others
Management's Message
Commenting on the performance, Mr. Pallak Seth, Vice-Chairman, PDS Multinational Fashions, said,
"From the beginning of 2020, the global retail landscape has seen an unprecedented slowdown in demand and change in industry dynamics due to the COVID-19 pandemic. In these challenging times, our primary focus was towards undertaking all necessary measures to ensure safety of our employees and to honour our commitment to our customers, suppliers and bankers to the best possible extent.
Although we started the fourth quarter on a steady note with healthy performance in the month of January 2020, lockdowns in our key markets of Europe, Asia and the US impacted demand and supply chain operations, which in turn affected our performance in February and March. Despite the challenges, our client base broadly has remained intact. We are actively in discussion with all our customers to continuously assess and be prepared for any change in the situation and are also undertaking necessary steps to ensure sustained supplies to our clients. I am also pleased to share that we have rapidly resumed business and manufacturing operations and all our employees and partners are undertaking all measures to ensure continuity in operations with minimal disruption. While we are, currently, seeing a slowdown in demand across our key international geographies as a result of the macro-situation, in the near-term, we believe there should be a gradual bounce back in demand and consumer sentiment. The end-to-end supply chain system is also expected to stabilize in the near future. We are hopeful that in a normalized operating environment, we should be able to deliver a healthy and sustained performance, going forward."
Company Statistics
One of the leading global organizations strategic sourcing partner and manufacturer to major brands and retailers
| » | GlobalLeadingRetailersAndBrandsAsCustomers | |
|---|---|---|
| » | Associatesandfactoryworkersworldwide | |
| » | Offices AcrossCountries | |
| » | Revenue Stood at Rs.Crore in FY20 | |
| » | Income stood at Rs.Crore in FY20 | |
| » | Own designers in key markets | |
| » | Operatesfactories in Bangladesh,factory in Sri Lanka |
Note: Income represents Gross profit, which is actual receipt of payment for PDS Multinational Fashions.
The PDS Edge
Design & Product Development
- 150 designers working on consumer requirements
- Design Studio's set up in Key Markets
- Develops over 1,000 new styles/ month
- Design Centers in key sourcing locations
People
- 1,800 Associates and 5,100 factory workers worldwide
- Over 70% focused on Sourcing, Quality
Sourcing, Manufacturing & Marketing
- Established association with an extensive number of manufacturers in countries including Bangladesh, Cambodia, China, India, Myanmar, Pakistan, Sri Lanka, Turkey
- Strong connect with leading retailers & brands across the globe
- Setting up Manufacturing facilities to have better control over supply chain and improve customer service
Logistics & Supply Chain
- Established logistics and warehousing capabilities
- Inventory holding and stock management facility
- Ensures efficient and shorter delivery time
Financial Strength
- USD 287mn Credit and Working Capital Limits
- Banking Relationship with leading multinational banks
- Invested in vendor facilities to have dedicated manufacturing infrastructure
Well-balanced Business Model
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About Us
PDS Multinational Fashions Limited PDS Multinational Fashions Limited is a global organization that is a strategic manufacturing partner to major brands and retailers. In addition to the broad range and diversity of consumer products available through its extensive international sourcing network, PDS Multinational Ltd has strength and expertise in custom product design and development to provide total global sourcing solutions for its customers. The Company was established four decades ago by Mr. Deepak Seth and is currently helmed by the second generation of promoter family. PDS Multinational Fashions Ltd operates a vast global network covering over 50 offices, 20 countries and over 1,800 Associates and 5,100 factory workers across UK, Europe, Americas and Asia. The Company has implemented a strong global compliance program and has set a Zero Tolerance Violation and Critical Violation policy that aims at improving end-to-end transparency and visibility. For more information, visit www.pdsmultinational.com
For further information, please contact:
Chandra Sekhara Reddy, Company Secretary, PDS Multinational Fashions Tel: +91 80 6765 3030 E-mail: [email protected]
Gavin Desa / Shikha Kshirsagar CDR India Tel: +91 22 6645 1237 Email: [email protected] [email protected]
Together we're building a better, more sustainable supply chain