2 weeks Ago By NDTV Profit News
Global fashion retailer PDS Ltd. is confident of achieving its target of a gross merchandise value of $5 billion and a turnover of $3.5 billion by FY29, according to Group CEO Sanjay Jain.
The company’s current topline stands at approximately $1.5 billion to $1.8 billion, Jain told NDTV Profit.
“We said close to 18 months back that we are aspiring towards 5-5-5 – in five years, we should be $5 billion GMV, which means about $3.5 billion top line. We are at about $1.
5 to $1.8 billion top line. So, we're on track to get to that $3.
5 billion top line, and we have grown 20% in the first nine months of last year. We are progressing, well en route to getting to what we aspired for under 5-5-5,” Jain said.Under the 5-5-5 strategy announced in FY24, the company aims to generate a GMV of $5 billion and a profit after tax margin of 5% in five years from the time of announcement.
The company has also set an interim milestone of 3-3-3, under which, it seeks to achieve a GMV of $3 billion and a PAT of 3%, translating to a turnover of $2.2 billion.In the retail business, GMV is a metric used to measure the total value of sales a company generates over a specific period.
According to Jain, PDS’ current order book stands at approximately $600 million, reflecting over a 25% increase compared to the same period last year.Fashion Platform PDS Secures Rs 430 Crore In QIP RoundThe top executive expressed confidence that PDS is well-positioned to take advantage of the tariff changes announced by the US government.“As things unfold, we should be a beneficiary of whatever is happening.
The US is about 15% of our total sales. The impact on an immediate basis is not very significant. But given our model and the fact that we are serving our customers from various markets, we can benefit from this.
Turkey could be a beneficiary, and Egypt could be a beneficiary.PDS already has a strong footprint in Turkey. It has recently invested in developing resources, which in turn, are in touch with factories in Egypt and Latin America.
"So we tend to benefit from that,” he said.Higher tariffs on exporting nations like China and Myanmar, compared to those on India, could provide a competitive advantage and boost India's exports, Jain said. The company is targeting a 30% share of the US market in its sales over the next two to three years.
“Given our asset-light model and our agility to quickly contract factories across the world, we should be in a very good position to realign and cater to this changing dynamic. But realignment is in the future. Even the last 18 months' investments into Egypt, Latin America, and India give us the confidence that we should be the beneficiary of this,” he added.
Shares of PDS closed 6.69% lower at Rs 400 on Friday, compared to a 1.49% decline in the NSE Nifty 50.
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