Studds Accessories Limited Unlisted Shares Annual Reports

Studds Accessories Limited Unlisted Shares

Studds Accessories Limited Annual Report 2023-24 Summary: **Corporate Overview** * **About Us:** Studds Accessories Limited is a leading Indian manufacturer of helmets and motorcycle accessories, with over four decades of experience. They are known for excellence and have earned the trust of customers worldwide. They produce over 7 million helmets and more than 1 million motorcycle accessories annually. * **Mission:** The company aims to become the top helmet provider globally, prioritizing safety, innovation, and quality to fulfill the dreams of riders. * **At a Glance:** The company sold over 7 million helmets in FY24, exports to 70+ countries, holds approximately 25.66% market share in India, and acquired 130+ new domestic and export customers. **Chairman's Message:** * The Chairman, Madhu Bhushan Khurana, discusses the dominance of local players in the domestic helmet market and the growing impact of international brands in niche segments. Regulatory changes enforcing stringent safety standards and consumer awareness drive consolidation, competition, and higher product quality. * The company's strategy focuses on diversification, quality, customer engagement, distribution network strengthening, and sustainability to maintain market leadership. * The Chairman emphasizes the importance of enforcing helmet laws to improve rider safety, supporting these efforts through collaboration with government bodies, product development, and road safety campaigns. **Managing Director's Message:** * The Managing Director, Sidhartha Bhushan Khurana, reports a successful financial year (2023-24), attributing it to innovation, quality, comfort, and customer satisfaction. R&D has yielded advanced helmet designs with enhanced safety, comfort, and durability. * The company has state-of-the-art development and testing labs. * Studds is optimistic about international market growth, leveraging the China + 1 strategy and expanding dual brands with local distributors and compliant products. * Over the next 2-3 years, the Americas have emerged as pivotal markets for our growth strategy, and the company is strategically positioned to capitalize on these opportunities. **Business Model:** * The business model encompasses design, raw material procurement, manufacturing, quality control, packaging, distribution, after-sales service, and customer service. * The company aims to provide a safe riding experience with superior-quality helmets. Total income reached 5,358.38 million, PAT reached 572.27 million, with a production volume of 7+ million. CSR initiatives are taken towards education, environment, healthcare, and sanitation. **Financial Performance:** * Revenue increased from Rs. 4,991.69 million in FY23 to Rs. 5,290.23 million in FY24. EBITDA increased from Rs. 674.74 million to Rs. 970.08 million. Net worth increased from Rs. 3,379.65 million to Rs. 3,874.05 million. **Advancing Customer-Centric Innovations:** * Studds prioritizes innovation, investing in R&D to create new products and technologies exceeding customer needs, focusing on cutting-edge technology and quality. **Opportunity and Growth Prospects:** * The rising popularity of adventure sports like biking and the integration of the latest technology into helmets contribute to industry growth. The government's "Make in India" initiative is also elevating demand and the e-commerce offers margin expansion. **Branding and Marketing:** * Studds' marketing focuses on innovation, quality, and customer satisfaction, using various platforms for product showcasing and community engagement. **New Launches:** * The company launched new helmets like GTJ, BIONIC ADULT & KIDS, THUNDER, RAIDER, THUNDER CR, and VOGUE ECO. **Cultivating an Empowering Work Environment:** * Studds prioritizes an inspiring and empowering work environment with collaboration and mutual support for employee growth, offering training and development programs. The company's workforce includes 3000+ people and they are imparting training to 20 numbers. **Building Stronger Connections:** * The company operates sustainably, supporting local communities and initiatives in education, healthcare, and environmental maintenance. **Beyond Business: Our CSR Efforts:** * Studds promotes community growth through education (scholarships), healthcare (special therapy for children, medical assistance for adults), and environmental maintenance (supporting parks, rainwater harvesting). Studds also contributes to the PM Fund. **Awards and Accolades:** * The company has received several awards, including the Accessories Award 2013-2014, Commendable Export performance 2007-2008, Certificate of Excellence 2018-2019, 3.0 Technology Excellence Awards - Manufacturing Edition 2024 - Delhi and several awards by Bureau of Indian Standards in the year 2022. **Management Discussion and Analysis (MDA):** * The global economy has shown resilience, while facing macroeconomic challenges. In 2024, Europe's economic growth is expected to rebound. Asia's economy shows a divergence in growth prospects. * India's GDP grew 8.2% in FY24. The two-wheeler industry is positively impacted and the helmet industry benefits from stricter safety regulations. The company aims to capitalise on the growth of domestic and international markets, adapting strategies for success. * Studds understands its responsibility toward the environment and society. * Risk management is a key part of its operation. **Board's Report:** * The Board recommends a dividend of Rs. 4 per equity share. Performance highlights include revenue from operations of Rs. 5,290.23 million and a profit after tax of Rs. 572.27 million. * The company’s auditors’ reports do not contain any qualifications, reservations, adverse remarks or disclaimers. * The Share Capital of the Company as on date is Rs. 9,83,83,500/-. The company has one wholly owned subsidiary and has been liquidated with effect from September 19, 2023. * The Board has complied with the requirements of Section 134(3)(c) read with section 134(5) of the Companies Act, 2013, * Ratings were awarded by CARE Ratings Limited on February 12, 2024 and reaffirmed previous ratings. **Key Financial Notes (From Consolidated Financial Statements):** * Auditor's report mentions some reliance on unaudited data from liquidated subsidiary company * Total equity is Rs. 3,874.05 million * A list of individuals that are KMP are noted, all key compensation is transparently presented. * Detailed summaries of assets, liabilities, debts, and cash flows, and their relation to the performance of company goals are included. * Detailed disclosure regarding all related party transactions, accounting policies, and management outlook are included. * Certain directors are to retire by rotation, but are available for reappointment

Studds Accessories Limited Unlisted Shares

Okay, here is a detailed summary of the Studds Accessories Limited Annual Report 2022-23 based on the PDF provided. **Company Overview:** Studds Accessories Limited, founded in 1983, is a leading global helmet manufacturer committed to providing protection and comfort for motorcycle riders. The company exports to over 50 countries and prides itself on innovation, quality, and safety. The company's mission is to provide safe, innovative, and comfortable products, aiming to become the top helmet company globally. **Key Highlights (FY 2022-23):** * More than 64 Lakhs helmets and luggage boxes sold. * Exports to over 65 countries. * 13.17% of total sales from exports. * 25.66% market share in India. * Targeting 15 new countries for expansion. * The product offerings include helmets, bicycle helmets, face shields, face masks, and motorcycle accessories. **Chairman and Managing Director's Message:** The message emphasizes a commitment to sustainability and recognizing the company's responsibility to the environment and society. The company achieved a revenue growth of 7.93% despite macroeconomic challenges, and is focused on continuing innovation and delivering high-quality products. Studds manufactured more than 64 Lakhs of helmets and boxes during the fiscal year 2022-23. The company is actively implementing eco-friendly measures. **Industry Overview & Opportunities:** The motorcycle helmet market is expected to grow at a CAGR of nearly 6.4% during 2022-30. Factors driving growth include rising safety awareness, integration of technology in helmets, and the increasing use of motorcycles as a preferred mode of transport. Electric Vehicles (EVs) and infrastructure development will contribute to the growth of the two-wheeler industry. The global motorcycle helmets market is expected to grow at a CAGR of 6.6% during the period 2022-2030, according to a report by Grand View Research. Wearing a motorcycle helmet correctly can result in a 40% reduction in risk of death and a 70% reduction in risk of severe injury. The government's Make in India initiative and growth of e-commerce also provide opportunities for greater market share and margin expansion. **Business Model:** * **Inputs:** Financial resources, manufacturing facilities (4), a workforce of 3000+ employees (including contractual and casual workers), social and relationship capital (expenditure on CSR is 15.70 Million), and a supplier network of 900+. * **Value Proposition:** Studds offers high-quality, durable, and stylish helmets designed to meet or exceed safety standards. * **Business Operations:** Studds' operational activities include: Research and development to innovate new products and technologies, designing and manufacturing high-quality helmets, Marketing and promoting our products to reach a broader audience, partnering with strategic distributors and retailers worldwide, providing excellent customer service to ensure customer satisfaction, building relationships with key suppliers to ensure the availability of high-quality materials and components. * **Outputs:** Sales of helmets through e-commerce platforms and strategic partners. * **Outcomes:** Achieved strong financial results, optimized costs through investment in industry, sustained growth in human capital, and created a positive brand reputation. Total Income: Rs. 5064.80 Millions, Total EBITDA: Rs. 674.74 Millions, Total PAT: Rs. 332.58 Million. More than 64 Lakhs of helmets and luggage produced. EPS: Rs. 16.90 **Financial Performance:** The report provides charts illustrating revenue, EBITDA, PAT (Profit After Tax), and Net Worth for FY19 through FY23. Net worth increased from Rs. 3108.07 million in FY 2021-22 to Rs. 3379.65 million in FY 2022-23. During the financial year under review the revenue was Rs. 4991.69 million in FY 2022-23, as compared to Rs. 4625.07 million in FY 2021-22. The EBITDA was at Rs. 674.74 million in FY 2022- 23 as compared to Rs. 597.05 in FY 2021-22. **Quality-Driven Innovation:** Innovation is central to Studds, supported by a dedicated R&D team. The company invests heavily in R&D and focuses on meeting customer requirements. Quality is a top priority, with rigorous testing to ensure safety and effectiveness. <1.0% Rejection rate during in-house quality inspection. More than 40 number of checks before approval of design and in-house development. The company launched 6 new designs. **Corporate Social Responsibility:** The CSR policy focuses on promoting healthcare, education, and environmental sustainability. CSR Committee includes Mr. Madhu Bhushan Khurana, Mr. Sidhartha Bhushan Khurana and Ms. Pallavi Saluja. The amount spent on CSR activities for the financial year ending on March 31, 2023, was Rs. 15.70 million. **Management Outlook:** Studds is committed to innovation, quality, and customer satisfaction. The company expects to continue its growth trajectory and improve its domestic and global market share, keeping in view the projected growth of India economy. **Risk Management:** The company's risk management policy is supported by internal control measures and focuses on assessing and mitigating various risks. **Board's Report Highlights:** * Standalone revenue from operations was Rs. 4991.69 million for FY 2022-23. * The Board recommends a dividend of Rs. 4/- per equity share on 1,96,76,700 fully paid-up Equity Shares. * SMK Europe Unipessoal, LDA is the wholly-owned subsidiary. * Re-appointment of Mr. Madhu Bhushan Khurana and M/s Rajan Chhabra & Co. is subject to shareholder approval. * Provides details on directors and key managerial personnel. * Contains a Directors' Responsibility Statement. * Outlines the composition of the Audit Committee, Nomination and Remuneration Committee, and Corporate Social Responsibility Committee. I hope this detailed summary is helpful!

Studds Accessories Limited Unlisted Shares

Rapid urbanisation, burgeoning population, growing workforce, and increasing disposable incomes have contributed to the rapid growth of the two-wheeler segment. The COVID-19 pandemic has accelerated this shift. However, this growth has raised concerns about road safety. STUDDS has become a trusted brand for helmets and riding gear in India and internationally, with over 50 million customers. The company aims to deliver excellence while keeping safety at the core of its products and intends to capitalize on opportunities related to personal mobility. **Corporate Overview:** * **About STUDDS:** * Established in 1983, STUDDS is a leading manufacturer of two-wheeler helmets and accessories. * Presence in more than 50 countries, including Europe, Asia, Latin America, and the Middle East. * Offers a comprehensive selection of two-wheeler helmets and accessories. * Operates four backward-integrated manufacturing facilities with a capacity of over 14 million helmets annually. * R&D team continuously innovates and experiments with different designs, rigorously testing products for safety and comfort. * Helmets are manufactured with the latest technology and have all the necessary certifications. * In FY22, STUDDS sold 5.9 million helmets. * Holds a 25.66% market share in India. * Identified as the largest helmet manufacturer in the world, as of August 2018. * **Mission Statement:** Aims to be the top helmet company globally, providing safety to every two-wheeler rider and fulfilling individual, family, societal, and national aspirations. * **Business Verticals:** Helmets, Motorcycle accessories, Bicycle helmets, Face shields, face masks. **Global Presence & Financial Performance:** * Exports to 50+ countries. * Targeting 8 new countries for expansion. * 79.55% of total sales from domestic sales. * 20.45% of total sales from exports. **Message from Chairman and Managing Director (Madhu Bhushan Khurana):** * The financial year 2021-22 presented challenges due to the pandemic and geopolitical conflicts, but the company remained resilient. * Achieved robust performance with revenue of ₹4625.07 Million, EBITDA of ₹597.05 million, and PAT of ₹286.37 million. * Responding to increased market demand in the second half of the fiscal year. * Continuing to invest in innovation and offer high-quality products. * External factors like stringent helmet rules and the growth of electric two-wheelers (460% growth in FY 2021-22) are creating tailwinds. * Leveraging innovative strengths and ability to experiment with new designs. * Providing a conducive work environment and skill development programs for employees. * Confident in future growth with favorable policies, demand, and capacity expansions. **Business Model:** * **Capitals:** Financial, Manufacturing, Human, Social, Relationship. * **Process:** Manufacturing, Research & Development. * **Corporate governance.** * **Supply chain.** * **Stakeholders:** Customers, Investors, Government, Employees. * **Output:** * More than 60 Lakhs of helmets and luggage produced. * 25.66% market share in two wheeler helmet market. * 4% Gender diversity ratio (on-roll staff & workman). * **Outcome:** * Strong financials. * Consistent & sustainable growth. * High-quality products, reduced environmental impact. * **SDGs Linked:** Decent work & economic growth, Responsible consumption & production, Gender equality, Good health & well-being. **Financial Highlights:** * Revenue: Increased from 3364.44 million INR (FY18) to 4625.07 million INR (FY22). * PAT: Increased from 328.81 million INR (FY18) to 286.37 million INR (FY22). * EBITDA: Decreased from 575.66 million INR (FY18) to 597.05 million INR (FY22). * EPS: Decreased from 16.71 INR (FY18) to 14.55 INR (FY22). * Net worth: Increased from 1186.88 million INR (FY18) to 3108.07 million INR (FY22). **Innovation:** * Focus on safety and comfort in new product development. * Products are developed considering aesthetic demands, new trends, and safety regulations. * 12 highly experienced employees in the R&D team. * 5 new designs. * Products undergo 25 checks before approval. * Electronics design & development is done in-house. * Rejection rate during in-house quality inspection is less than 1%. **Opportunities:** * Governments worldwide are enforcing stringent helmet use rules. * The Motor Vehicles Act of 1988 mandates helmet use in India. * Growing EV market requires helmets for vehicles exceeding 25km/hr. * In FY 2022, electric two-wheeler sales increased by 460% over FY 2021, reaching 231,338 units in India. **Employee Engagement:** * Focuses on providing a comfortable, appreciative, and inclusive environment. * Offers training programs for corporate and personal growth. * 1629 on-roll employees. * 958 off-roll employees. * Approximately 14% total attrition. * Conducted 212 training programs. * Imparted over 5,000 hours of training in FY 22. **Corporate Information:** * **Directors:** Madhu Bhushan Khurana, Sidhartha Bhushan Khurana, Shanker Dev Choudhry, Pallavi Saluja, Pankaj Duhan. * **Chief Financial Officer:** Manish Mehta. * **Company Secretary:** Hitesh Wadhera. * **Bankers:** HDFC Bank. * **Auditors:** M/s Rajan Chhabra & Co. **Management Discussion and Analysis:** * Global economic overview highlights strong consumer spending in 2021, followed by slowing in major economies due to fading stimulus and supply-chain issues. The Russia-Ukraine conflict created major disruption in the global market. * The Indian economy, after declining 7.3% in 2020-21, is estimated to grow by 8.7% in real terms in 2021-22. * The motorcycle industry expects high growth with the growing demand for individual mobility. * The helmet industry is expected to achieve significant growth because of mandatory helmet usage rules. * The company strives to provide safe and innovative products while building trust and helping people live safer, more comfortable and more attractive lives. * Human resources is a critical component, and aggressive HR strategies helps to retain employees and develop their value. * Management outlook is positive, with the company aspiring to be the world's top helmet manufacturer and constantly delivering high quality and innovative products. **Operational Highlights:** * The company manufactures around 14 million helmets each year. * Manufactured over 6 million helmets and clocked sales of 5.9 million helmets during the year. * Global presence in over 50 countries. **Financial Highlights (Figures in Rs. Millions):** * Revenue: Rs. 4625.07 (FY 2022) vs Rs. 4796.15 (FY 2021) * EBITDA: Rs. 597.05 (FY 2022) vs Rs. 1151.07 (FY 2021) * PBT: Rs. 400.17 (FY 2022) vs Rs. 982.98 (FY 2021) * PAT: Rs. 286.37 (FY 2022) vs Rs. 739.96 (FY 2021) * Net Worth: Rs. 3108.07 (FY 2022) vs Rs. 2898.91 (FY 2021) **Key Ratios:** * Interest Coverage Ratio: 14.09 (FY 2022) vs 29.37 (FY 2021) * Current Ratio: 1.34 (FY 2022) vs 1.38 (FY 2021) * Net Debt Equity Ratio: 0.47 (FY 2022) vs 0.50 (FY 2021) * Return on Equity: 9.58% (FY 2022) vs 29.22% (FY 2021) * Net Profit Margin: 6.15% (FY 2022) vs 15.26% (FY 2021) * Return on Capital Employed: 16.58% (FY 2022) vs 35.53% (FY 2021) **Human Resources:** * 1629 on-roll employees and 958 off-roll employees. * Employees and associates received more than 5,000 hours of training. **Risk Management:** * The company has internal control mechanisms to backup the company's risk management policy. **Financial Statements** * Board of Directors recommends a dividend of Rs. 3/- per equity share. * Registered office of the company was shifted to Plot No. 918, Sector 68, IMT, Faridabad-121004, Haryana with effect from April 14, 2022. * The company’s credit ratings were revised to CARE A+; Stable (Long term) and CARE A1+ (Short term). * As on March 31, 2022, the Company has one wholly owned subsidiary company, SMK EUROPE UNIPESSOAL LD. * Mr. Sidhartha Bhushan Khurana and Mr. Pankaj Duhan are to be re-appointed as Managing Director and Independent Director of the Company respectively. * During the year, the company manufactured more than 6 million helmets and clocked sales of 5.9 million helmets. * Certain statements in the MDA section concerning future prospects may be forward-looking statements which involve a number of underlying identified and unidentified risks and uncertainties that could cause actual results to differ materially.

Studds Accessories Limited Unlisted Shares

The annual report for 2020-21 of Studds Accessories Limited, an automobile accessories company specializing in helmets and motorcycle luggage, highlights the company's financial performance, strategic initiatives, and approach to value creation. Incorporated in 1983, STUDDS produces around 7 million helmets annually and exports to over 45 countries, holding the position of the largest helmet manufacturer in the world with 25.66% market share in India. **Corporate Overview** STUDDS aims to be the top helmet company globally, ensuring safety for two-wheeler riders. Its mission focuses on safety, innovation, comfort, and quality, with a continuous commitment to excellence in every step of a rider's journey. **Financial Performance** Despite challenges from the COVID-19 pandemic, STUDDS reported a total revenue of INR 4842.10 million for the year ended March 31, 2021. EBITDA was INR 1151.07 million and Profit After Tax stood at INR 739.96 million. The company has net worth of ₹2,898.91 million as on March 31, 2021 and term loan from bank of ₹270 million. The company attributes its resilience to innovation, digital solutions, and a focus on long-term objectives. Operations were affected in FY20-21 due to the pandemic, but production bounced back. New digital projects were expedited to respond to consumer needs. **Approach to Value Creation** The company's value creation model involves financial capital, manufacturing capital (4 facilities), and human capital (2,722 employees) as key inputs. Key processes include supply chain management, distribution, branding and marketing, research and development, and manufacturing. Key outputs include ₹739.96 million PAT, 15.26% PAT margin, 1151.07 EBITDA, 37.61 EPS, 29.22% return on net worth, and 64,18,136 helmets produced. Outcomes involve sustainable economic growth, business continuity, highest quality standards, reduced environmental/social impact, innovation, improved efficiency, a healthy work environment, and nurturing employee skills. **Strategic Initiatives & Future Outlook** STUDDS prioritized the safety and well-being of its employees and invested in research and development, launching new products in FY21. The company plans to develop an overarching CSR vision, emphasizing sustainable practices. **Management Discussion and Analysis** The report provides an overview of the global and Indian economies, including the impact of the COVID-19 pandemic. Despite the economic downturn, the two-wheeler industry in India showed resilience. The helmet industry is expected to grow around 25% by 2022 as consumers become more safety-conscious and governments mandate helmet use. **Statutory Reports** The company remains focused on continuous innovation and quality, along with effective human resource management and operational efficiency. As of March 31, 2021, the Company had 1778 employees and 944 off-roll employees. During the period under review, 377 hours of training was imparted to staff and associates of the Company. The directors' report details the financial performance, dividend recommendations (Rs. 4/- per share), and other statutory compliances. There have been no significant material orders passed by regulators impacting company status. Madhu Bhushan Khurana and Sidhartha Bhushan Khurana are related in accordance with the companies act. The board consists of two Executive Directors and three non-executive Independent Directors. Various committees are in place, including the Audit Committee, Nomination and Remuneration Committee, and Corporate Social Responsibility Committee. The report also contains sections on corporate social responsibility and risk management. **Financial Statements** The audit report from Rajan Chhabra & Co. is unqualified. A separate report details the adequacy of internal financial controls. Disclosures regarding related party transactions and other financial matters are included. The company’s CSR spending has not reached 2% of the average net profits. The company has an wholly owned subsidiary (SMK EUROPE UNIPESSOAL, LDA) based in Portugal.