Annual Report: 2023
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):
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:
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:
I hope this detailed summary is helpful!
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