PDS, a company that provides integrated and customised solutions to global retailers and brands, expects to grow topline and profit in low single-digits in FY24.

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However, the Group CEO Sanjay Jain, is optimistic that "the bottoming out is almost happening in terms of the adversity on demand, and in the next couple of quarters now starting from the current quarter, we should see the customers coming back."

In fact, the target is to take the PAT (profit after tax) margin closer to 5% in the next 2-3 years.

Jain believes that Ted Baker, the British high-street clothing retail company, will grow by 10% each year for the next two to three years.

In April this year, PDS signed a strategic brand management partnership under which it will manage the design and merchandising functions of Ted Baker. This also includes managing its wholesale business both in the UK and Europe.

The company estimates revenue of close to $100 million annually (roughly ₹800 crores) coming from Ted Baker, per its fourth quarter FY23 conference call held in May 2023, right after the Ted Baker deal.

The deal opened up the opportunity for PDS to offer complete brand management to other global retail companies.

Speaking to CNBC-TV18, Jain expressed confidence in Ted Baker's future performance, stating, " We anticipate at least about closer to 10% growth rate year-over-year for the next two, three years and a gradual augmentation of PBT margin that's on Ted Baker."

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In the second quarter of FY24, the company saw a 13% increase in its gross merchandise value (GMV), reaching ₹3,698 crore, up from ₹3,271 crore. However, revenue from operations dropped by 16% to ₹2,463 crore, down from ₹2,921 crore.

The drop in revenue was influenced by global factors. "So when you notice a decrease in sales, it aligns with what we expected," Jain explained. Nonetheless, Jain pointed out that 13% growth in GMV is a good sign, showing that customers have welcomed new services like sourcing solutions and brand management.

Shares of PDS have gained more than 26% over the past month. Its market capitalisation was ₹7,627.46 crore.

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(Edited by : Shweta Mungre)

First Published:Nov 2, 2023 4:48 PM IST