Studds Accessories Limited (STUDDS) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Studs Accessories Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant clients will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this conference, please signal an operator by pressing star and then zero on your touchtone telephones. Please note that this conference is being recorded. I now hand the conference over to Mr. Siddharth Khurana, Managing Director, Stats Accessories Ltd. Thank you and over to you, sir.

Thank you. Good afternoon, everyone, and thank you for joining Studs Accessories Ltd.'s Q1-SY27 earnings conference call. I hope you have had an opportunity to go through our financial results and investor presentation, which are available on the company's website and on the stock exchanges. I am joined today by Mr. Bharat Goyal, Chief Financial Officer of the company. I am also joined by SGA, our Investor Relations Advisors. Let me start with the broader environment. The global economic environment remains challenging with geopolitical and trade related uncertainties creating volatility across markets. India, however, continues to remain relatively well placed, supported by strong domestic consumption and infrastructure spending. For our industry, we believe the structural opportunity remains strong, supported by the growing two-wheeler ecosystem, increasing adoption of premium motorcycles, adventure touring and motorsports, and rising consumer awareness around safety. At the same time, stronger regulatory enforcement and premiumization are accelerating the shift from an unorganized price-driven market towards a more organized, branded, and safety-focused market. We believe this is a positive development for studs given our strong brand's distribution network, manufacturing capabilities, and product portfolio. Coming to our performance, we delivered a healthy 13.7% year-on-year's growth in revenue to 169.7 crores in Q1 F527. The underlying demand environment continues to remain stable across our key markets. However, the quarter was impacted by a very sharp increase in styrene-based raw material prices. Just to give you some perspective, the average styrene-based raw material price was around Rs. 135 at the beginning of Q4, FY26, which increased at its peak to approximately Rs. 225 in Q1, FY27. That's almost a 65% increase in prices. This was an exceptional movement in raw material prices over such a short period of time. However, we did not face any issue with sourcing or availability of raw materials. The issue was purely the magnitude and the speed at which the raw material prices increased. On the pricing front, we have taken the necessary actions to address the increase in raw material costs. However, the benefit of these price increases takes some time to fully reflect. In exports, some of the orders executed during Q1 were contracted before the price increase and therefore continued at the earlier prices. New export orders, however, are now being booked at the revised prices. On the OEM side, the revised pricing has become effective from Q2 onwards for some of the customers. As a result, we saw an effective price realization of around 5% in Q1. From Q2 onwards, we expect the full price increase of approximately 9% to be reflected at the earlier price orders, as the earlier price orders progressively roll off and the revised OEM pricing starts flowing through. Further raw material prices have also started moderating from July onwards. As lower cost material progressively flows through our inventory and the higher pricing gets reflected in the business, we expect margins to improve over the coming quarters. Accordingly, we expect EBITDA margins to improve to between 14-15% in Q2 FY27 and reach the normal state of 18-20% on a run rate basis by Q4 27, subject to raw material prices remaining broadly stable. The important part is what we are doing today. What is important for us is that we have not been sitting back and waiting for the commodity cycle to normalize. We have been actively working on multiple initiatives across capacity, customers, international markets, new products and technologies. A large part of these initiatives will start contributing meaningfully from the second half of the year. First is capacity. Our first phase of 1.5 million helmets of additional annual capacity is progressing as planned and is expected to become operational beginning October and September. This is important because our existing facilities are already operating at relatively high utilization levels. In Q1 FY27, our two-wheeler helmet and boxes production was around 1.95 million units with a utilization of 81%. The additional capacity gives us the necessary headroom to cater to incremental demand without putting pressure on our existing manufacturing infrastructure. And as we have said earlier, our manufacturing setup is highly fungible. Depending on the product mix, we can optimize throughput between different products and brands. So this capacity addition is not only adding volumes, it also gives us flexibility to respond much faster to changes in the market demand. Second is Decathlon. Our engagement with Decathlon is progressing well, and commercial production is expected to commence from October. This is strategically important for us because it gives us an opportunity to participate more meaningfully in the organized and institutional segment. We also see this as an opportunity to build capabilities that can be leveraged for other international and institutional customers going forward. The third initiative is about Italian operations. We believe Italy can become an important platform for European growth. The objective is not simply to establish a warehouse. Today, when we supply customers in Europe, the shipping lead time can be 45 to 60 days. This means the distributors have to carry relatively high inventory levels to ensure product availability. Once our Italy operations become fully functional in October 2026, we will be much closer to the customer. This means that distributors can potentially order closer to their actual requirement and carry lower inventory. So rather than asking a distributor to forecast demand several months in advance, we can increasingly move towards a more responsive and just-in-time supply model. At the same time, it will allow us to explore near markets directly where we currently do not have adequate presence. As we have said earlier, we are already looking deeper presence in markets such as Turkey, Colombia, Mexico, USA, Indonesia, Philippines, and Sri Lanka. The Italian platform therefore gives us another tool to expand our international business, improve our responsiveness, and deepen our relationship with the dealers. The fourth area is product innovation. We have always believed that the long-term opportunity for studs is not restricted to helmets. The rider safety and rider accessories ecosystem is much larger. During Q1, we launched two new helmet models, Ares and Rader Youth. We have another four to five products in the pipeline, which we expect to launch progressively during the year. Our focus will continue to be on refreshing the product portfolio, bringing new designs and features to the market and addressing changing consumer preferences. Bluetooth communication systems. We are currently working on two different products. The first is more standard Bluetooth product, which allows riders to listen to music, use turn-by-turn navigation, and connect with their mobile devices. The second product is more advanced. This is a mesh Bluetooth communication system, where a group of riders can connect with each other and communicate while riding. The prototype is already ready, and we expect the first commercial production to commence Q3 F527. We see this as an interesting category because it takes us beyond the traditional helmet business and into a broader connected riding ecosystem with standalone Bluetooth devices. Riding jackets. In parallel, our riding jacket product is also progressing well, and we expect this to become commercially available around Q2-FY27. Overall, our core stack business continues to provide scale and stability. SMK is driving premiumization and international growth. Our private-level business is opening up opportunities with global customers. Our export business continues to gain importance, and now we are adding new growth platforms through Decathlon, Italian operations, additional manufacturing capacity and Bluetooth communication system, and riding accessories. So, we are increasingly building a business with multiple growth engines rather than being dependent on any one product or market. Now, moving on to our consolidated financial performance. Our two-wheeler helmet and box's volume stood at 1.95 million. Consolidated revenue stood at Rs. 169.7 crores. EBITDA for the quarter stood at Rs. 19.6 crores with EBITDA margin of 11.5%. Pat for the quarter student equity is 12.3 crores with a pat margin of 7.2%. Capacity utilization for two-wheeler helmets and boxers stood at approximately 81% for Q1 FY27. Helmet ASP for Q1 FY27 stood at Rs. 845 as compared to Rs. 802 in Q1 financial year 26. With this, now I open the floor for questions.

Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may enter star followed by one on their touchstone telephones. If you wish to remove yourself from the question queue, you may enter star and two. Participants are requested to please use only handsets while asking a question. We will wait for a moment while the question queue assembles. To ask a question, please enter star and one. The first question is from the line of Rahul Deshmukh from Antique Stock Broking. Please go ahead.

Hello, sir. Thanks for the opportunity. I just wanted to understand the contribution of styrene-based raw materials to the total bill of material in terms of percentage. Yeah, that's my question. First question.

Hi, Raoul. I think the two main products, which is ABS and EPS, are the main contributors, and there are some indirect materials like paint, where also styrene manufacturing is involved. But to give you an idea, I think the styrene-based direct raw material consumption is about 36 percent, and another about 15 percent could be indirect.

Twenty-six percent is direct and another fifteen percent is indirect, right? Thirty-six.

Thirty-six percent is direct.

Thirty-six percent is direct. Right? Thank you.

Thank you. Participants with questions, please enter star followed by one. The next question is from the line of Manav Jain from MJ Investments. Please go ahead.

Thank you for the opportunity, sir. So, my question is like you are setting up actually

primarily to go dealer direct and improve penetration, but today a significant portion of European business is already being served through distributors. So when you move from distributor to dealer direct, are you actually capturing the distributor margin or are the additional warehousing, inventory and logistics and selling cost going to be absorbed most of that benefit? And at steady state, what EBITDA margin differential do you expect from the ITLE model versus the existing distributor model? Hi, Madhub. So, to answer your question on the Italian operation, we are planning to go direct in Italy, Germany, and France. So, these are not the strongholds for us. We don't have a direct distributor in Italy and Germany. So, we are kind of entering vacant markets for us. Although these markets are being fed through different distributors in other countries, but the volumes are very small. For countries where we are strong distributors like Spain, Holland, Portugal, we would not be entering directly. So the plan is to serve those markets through the distributors and enter these three big markets, which is Italy, Germany, and France, with a dealer direct model. And these three countries will be one of the top five, all the three. So these are fairly large markets. So that's the thought behind going dealer direct in these markets. It's a big volume that will come from these markets. Secondly, to answer your question about EBITDA margins, so at the moment, it's a startup, so we don't expect margins in the first year. Or the second year, the profits will start flowing it from the third year. And I would assume the EBITDA margins, surplus EBITDA margins, I would say. So whatever we're gaining right now, on top of that, the surplus EBITDA margins could be anywhere between 10 to 12 percent from the Italian subsidiary.

Okay, sir. Got it. That was very helpful. Thank you, and all the best.

Thank you. Participants with questions, may please enter star and one. The next question is from the line of Preet Pitani from InCred AMC. Please go ahead.

So my first question will be on the line of raw material cost. Like we have told that we have a gross margin compression and impact compression because of raw material cost. But if I see there is a 600 basis point in time due to material cost and 200 basis point in time due to other expenses. If you could highlight what was the rise in the other expense. Yeah, sure.

So, as you rightly mentioned, 600 bps is because of material, and 200 bps is because of other items, but that other item, actually, there's just one item, which is manpower cost. So, the manpower cost has gone up by 200 bps, and the main reason for that is that there was a change in the minimum wages in Haryana from 1st of April. There was an increase of 35%. So, the minimum wage for unskilled person was between 11,000 and 12,000 earlier. Now, it has become 15,000 and 16,000. So, that is the main reason of increase in the manpower cost, and I think going forward... It will not be 2%, it will be slightly lower, because we have just realized 5% of increase in our sales cost from the price increase that we have done. We expect it to go to 9% realization on increase of the sales price. So, in the first quarter, we could only realize 5%. In this quarter, it will be higher. So, you will see this impact softening, but it is right that the manpower cost has gone up. And it is going to sustain. We can only offset it by better product mix or by increasing the prices.

And just a follow-up on this. Do we have a contractual agreement with OEM for this manpower pass-through as well?

Yes. So, we have received some increases. In fact, we have received increases from all the OEM customers, except one which we are expecting in next one week. So, all this cost will be passed through to the OEMs.

I'm just on the price, you mentioned 9%. So is this 9% from the base, from the last year base price or is it 5% in Q1 and another 9% in Q2? If you could just clarify this. If you could just clarify exact raw material price height in quarter 1 and quarter 2 and also our product price height in quarter 1 and quarter 2.

Okay, so our product price hike is 9% from the base of FY26, so March 26th. From there, we have taken a price hike of 9%, but for three channels, which is OEMs, which is Hero, Honda, Suzuki, other customers, Then, government channels like CSD, CPC, and some of the export customers. The price hike takes some time to realize. So, for example, for exports, we had some old orders in the system, which we executed. So, the exports have been completely now in this quarter. The realization is all on new prices. For OEMs, I think most of the realization will come in this quarter. Full quarter, but some realisation will only be impacted in half of this quarter. There are some price hikes we are expecting in this week from one big customer. For CFD, CPC, also we expect the price height to come in this quarter, mid of the quarter. So I would say where we got a 5% price height last quarter, we expect this quarter could be anywhere between 8% to 9% and the next quarter could be 9% realization. So that's on the sales price side. On the raw material side, we had an impact, as you said, was 600 bps. For Q1, we expect this to soften to about 300 bits, close to 300 bits in this quarter, and then as material prices soften, we expect Q3 and Q4 to be better, and we will see how the styrene prices and the other raw material prices go from there, but for sure we see Q2, they have already softened a little bit.

Got it, sir. And on this, we have around top-line growth of 1.7%. So is it to assume that 7-8% would be volume growth and 5% would be the price visualization growth?

Yeah, I think the volume growth, just in a second, the volume growth is close to about 8%.

One second.

Yes, so the volume growth is about 1.4 lakh units on a base of 17.56 lakh units. So that's about 8.5%.

And what would be our volume growth estimate for full year?

So the volume growth estimate for full year would be close to between 8 and 10 percent, I think, minimum. More actually, it would be closer to 10 percent, closer to 10 percent.

So 10 percent volume growth and blended 7 to 8 percent realization growth, this is what we can assume. Right? Yeah.

That's why in my last call, I said high teams growth on the revenue side.

And now, if we take full time like Ops in this year, so what can we expect in FY28 on volumes and realisation basis? Because you would be starting your operations in Italy and other few other countries which you mentioned. So what kind of growth in terms of volume and in terms of realisation due to change in product mix can we assume in FY28?

FI-27, you mean?

28.

28, you mentioned. FI-27. Yeah, so FI-28, we expect a growth of, again, mid to high teams.

And if you could just bifurcate this into volume and realisation?

So, the, it will be more from, I would say, volume. I'll just give me a second, I'll give you the approximate number.

Yeah.

So roughly 13 to 14% should come from volume, and 3 to 4% should come from price realization for the next year.

Got it. And then one last question, like you mentioned that we are starting with the sea and fall sea plants and this will not be profitable from year one and we could see step of profits from third year. So what if you could just give some cost in quantifiable terms, what kind of cost like 20, 40, 50 crores do we expect for one time expense to start all these things?

No, the cost will not be that high. We expect the losses to be maybe 2 to 3 crores to start with, and next year it could go up to maybe 4 crores, but it will not be substantially higher than this.

Okay, so what we are expecting is, yeah, you can do this one.

I said, because we are starting our operations in October 2026, at the moment, whatever salaries are going out, there is just expense, there is no revenue, also for this quarter. From October onwards, we will have the sales, so we don't expect big losses after that, and next year also, it will not be profitable, for sure, because we will have to expand our team, but the losses will be not substantial or materialized.

Yeah, so what we expect is 2 to 3 crores of loss on pack level for this year, and 4 to 6 crores, 4 to 5 crores of loss on pack level in FY28. Is my understanding correct?

Can you give me a second? One second. So for financial year, 27, 28, we are also looking at a loss between 2 to 2.5 crores, not 4 crores, I'm sorry. I just looked at the numbers. It will be between 2 to 2.5 crores.

For FY27. Fy27, yeah. And Fy28, 4 crores, which you mentioned that for expansion we would require UTI. That is Fy28.

No, Fy28 also will be about 2 crores, not 4 crores.

Okay. And on our internal calculation, what would be our top line from these three countries where you are going to direct?

One second.

So this year, we expect the revenues to be anywhere between 100 to 125,000 euros. So because it's just a startup year. Next year, we expect the revenues to be close to about a million euros.

And are we concentrating this on our maintain growth, which we are guiding, or this is over and above?

No, this is included on a console level.

Sure, I'll join back in the key. Thank you so much for mentioning.

Thank you. To ask questions, please enter star and one. The next question is from the line of Rishabh Agarwal from Surabh Capital. Please go ahead.

Hi, sir. Sir, what was the reception of the price increase in the GT channel? Because I assume that has been fully paid.

Yeah, so the price reception has been quite normal, and we didn't find any resistance in the GT channel in terms of price increase, and that has been completely passed on, you're right, in the GT channel. Other channels, it had not been passed on in the last quarter entirely.

Ghoratan, do you expect any sort of a volume impact in the GT channel because of price increase, or do you expect this to be pretty price and elastic?

I think last quarter numbers are showing that we had a volume increase of 8.5%. So that's not across only OEMs and other channels, also in the GT channel. We had a good volume growth. So I don't see volume growth as a challenge in the GT channel because this price and impact is there for everybody. It's not only for us. That's true.

And similar research in the OEM, Have you seen any sort of reluctance on the OEMs part of not accepting this price increase, or are the other competitors trying to increase the market share? What's the dynamic there?

So we haven't seen any major shift because we have received from all the OEMs the price increase except one, which we're expecting this week. So, I think we are beyond that that there is any resistance because the price hike is so substantial that none of the competitors can also absorb it. So, we don't see that as a challenge for OEMs. It's already happened, actually.

Understood. The other one was, could you also just help me understand the journey of the siren price? It seems to me that December, January was, you know, when it sort of peaked, and then it has come down significantly. Oh, sorry, rather, April was the time when it peed, and now it has come down, and maybe because of this renewed war conference, it has jumped up a little bit, but just wanted to actually see. Like, were we in this quarter at the worst end of styrene prices, and has it cooled off now?

So, the worst of styrene was April. So, what happens is that India imports 98% of its styrene through China, through, sorry, Gulf. Now, that completely stopped, and India had to go to other places to find styrene, and there is a premium. So, there is obviously a futures price that you see of styrene, versus if you see spot prices, there are sometimes differences, right? So, we see that, though it has softened, but it is not completely in line with the oil prices, right? Oil prices have softened more right now. So, we expect the moment the Gulf opens, or the Hormuz opens. We will see more softening of the styrene prices than the oil prices. Oil prices actually have kind of been, they have softened more than the other by-products of oil. Got it.

Just last question, sir. Do you expect at all in any of the channels for prices, for your final helmet prices to be reduced just because the raw material price will at some point hopefully reduce?

The only channel that it might have an effect is OEM, but other channels we don't think so, there will be any price decrease. And once the price is softened, we might have a slight decrease there in the OEM side. Got it. Understood. So this is very helpful.

Thank you. Paraspith, if you have any questions at this time, you may please enter star followed by one on your handset. The next question is from the line of Jai Jain from JJ Capitals. Please go ahead.

Hi, sir. Sir, our exports are now around

21% of revenue in Q1. Our buses, it was around 20% for the FUJR FY26. And you have earlier indicated an ambition to take this towards 30%. Given that export carries significantly higher EBITDA margins, theoretically every 100-grade increase in export mix should be margin-accretive.

How should we look at margins in mid-term?

So, you're right, Jay, that exports are a higher margin business, and our focus is on growing exports. As you said, it's about 21% of sales, and we intend to take it to closer to 30%, and obviously, I can't exactly give you a number that if it goes to 30%, how much the EBITDA will increase, because it depends on the product mix, what you're selling. Also, across SMK, we have ranged from 4,000 to 15,000 rupees helmets, but I can give you a ballpark figure that exports on SMK is more between 30 to 35 percent of the time, and on the studs level, if you see on the domestic side, it will be more like 17, 16, so right now it's much lower. I was just talking about 5 by 26. So that was about 17-18%. So you can imagine when the exports grow higher, you'll see improvement in a bit, depending on what is the share of exports. But I would say, if I was to put a number at it, I would not say that if exports were to go at 30%, our pack margins from 26% could go up by 200 to 300 bps, at least.

Got it. Thank you for the details.

Thank you. To ask questions, please enter star, followed by one. The next question is from the line of Pankesh Agarwal from Transparent Value. Please go ahead.

Hi, thanks for the opportunity. So, a couple of questions from my side. So, first question is, Sadiq Adgon is doing a position as it's important to start a relationship, but in this business, it's primarily institutional. How should we look at the economy?

Hello. Hello. I can't hear you properly. Can you say that again, please?

Yeah. So, the Tecton is in position as an important strategic relationship, but the business is primarily institutional. How should we look at the AHP side, again, a premium helmet portfolio?

I could hear that we are talking about some institutional relationship with Decathlon, right? How that is going to impact. So, Decathlon, you can see exactly like an OEM, right? How we work with OEMs for motorcycle helmets, where it's Honda or Hero. So, Decathlon will exactly work like that. The ASPs for bicycle helmets are lower than motorcycle helmets by about 15-20%. But we will never consider ASP across helmets as one category. We will always consider motorcycle helmets ASP separate and bicycle helmets ASP separate.

Okay, okay. One more question. How much revenue contribution are we expecting from the blue-toed and jet-toed products in after WB7? And are we meeting with in-house or contract manufacturing?

Which products are you talking about?

Blue-toed and jet-toed products.

What was that?

Jet-toed.

Jet-toed. So, in the current financial... We expect the volume, the revenue from these two categories to be anywhere between 15 to 20 crores, but going forward, it will increase from next year.

Okay. And are we producing the care? And how are we doing contract manufacturing?

So, a couple of products we are doing in-house, and a couple of products we are doing contract manufacturing.

Okay. Thank you. Let's do it, sir. Thank you. Thank you.

Participants, if you wish to ask any questions at this time, you may please enter star and one. The next question is from the line of Preet Bilani from InCred AMC. Please go ahead.

Thank you so much for taking my follow-up question. I just have three questions. One is on the CAPEX up front, if you could just tell F527 CAPEX and F528, and also where we would be doing this CAPEX.

Thank you. So, on the KPEX side, I think the KPEX is happening on the expansion of the new facility. Total KPEX, which will happen, it's not only FY27, I'm talking about the total KPEX, which will happen till 30th June is about 76 crores, plus another 10 crores of advances, which were committed to some of the vendors. And I think on the FY27 side, one second, I'll just check. Fifty-eight crores has been spent, which is a complete budget for FY27. So some of this would have been spent and some would be spent in the next few months. I don't have the exact figure of what we have spent in the first quarter of... That is about seven and a half crores is what we spent in the first quarter.

And FY28 remaining 28 crores.

FY28, the plan is 31 crores.

31.

We will also be starting the second phase as well, construction.

Okay. And is our list 10% 9% price hike which we have taken on a later basis, does this cover the whole of raw material pass-through? Would we be back to 60% gross margin by this 9% price hike if the prices remain at current levels?

Yes, so if the raw material remains at the current level, which is elevated than before, I would say at the current levels, we were earlier at 13% packed, we would be at current levels close to about 11.5% to 12% packed. So even now, the prices are elevated for styrene, which as I mentioned in my discussions, earlier was about 135 rupees, weighted average for some styrene products for us, which is close to about 185 right now. So it's almost like 30% higher. And we're sure that this is going to go down. So we will see that flow back into a profit and we're sure that by Q4 of this year, we should be back to where we were in FY26.

Okay, so on our field basis, it has 122.25, which has again come down and settled to 185.

At the moment, it's 185, yeah. At the moment, for this quarter, at the moment, it is 185 weighted average.

Okay. And lastly, on the guidance which you gave for FY28, 13-14% volume growth and 3-4% private growth, but also you have mentioned that from the three direct leader method, you are expecting somewhere around 1 million euros, which itself is around 100 crores of top line. And if we add 18-19% on Fy26 days, my estimates from that on Fy27, we would be around 730-740. So, and then in Fy28, that means just to summarize this, the 100 crores entirely, the font-in-cutting top-end would be coming around 100 crores, which we are planning from this three dealer levels only. So, is our guidance very conservative or would we like to update this guidance?

No, I think we haven't given the guidance completely for 28 considering the Italian subsidiary. It is more on a standalone volume basis, I was saying. Right? When you consider the Italian subsidiary, the ASP of the Italian subsidiary will be very different than the standalone basis.

Okay. So, just I'm getting confused. I have a last inch. Q, few minutes back, we mentioned that we are expecting on a console basis 13-14% volume growth and 3-4% realization growth, total 8-17-18% revenue growth for FY28. Is this correct?

This is a standalone figure. If I said console, then I think I'm mistaken, but I thought I didn't say console. It's standalone basis volume growth and 3-4% price height is standalone basis.

Okay, so dealer 100 crores from this deal, 1 million euros from this dealer direct model, this is over and above this 17-18 percent, correct?

So some of this, yes, some of this 10 million will be also distributed from other markets. They will not buy the main quantities. In our models, we have incorporated some distributor sales to other markets also from the Italian subsidiary. What happens is when they want some smaller quantities of materials, they will not wait for India to ship them, they will buy it from Europe itself.

And lastly, not any question, just wanted to ask if you are planning to come to Mumbai for any of the conferences, or is there any plan that we could physically meet?

Sure, we'll set up something with SGA. We just had, we came to Mumbai a few days ago, but whenever we are planning to come there next, we'll just get in touch with you, and you can be in contact with SGA for that, please.

Thank you, sir. Thank you so much.

Thank you. Participants with questions may enter star and one. As there are no further questions, I would like to hand the floor back to the management for closing comments.

Thank you all for joining us today. We hope we have addressed your questions and provided valuable insights into our performance and strategy. If you have any further queries or need additional information, please feel free to reach out to our team or our investor relations advisors at SGA. Thank you.

Thank you. On behalf of Start Accessories Limited, that concludes this conference call. Thank you all for joining us. You may now disconnect your lines. Thank you.