Studds Accessories Limited (STUDDS) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Studs Accessories Limited Q2 and H1FI27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-down phone. Please note that this conference is being recorded. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Siddharth Bhushan-Kharana. Thank you, and over to you, sir.

Thank you. Good morning, everyone, and thank you for joining Studs Accessories Limited's Q2 and H1 FY27 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 the stock exchanges. I'm joined today by Mr. Bhaira Paksa, SGA, our Investor Relations Advisor. The first half of FY27 has been challenging from an input cost perspective, with geopolitical and trade-related uncertainties contributing to volatility in global markets. Significant increases in styrene-based raw material prices have impacted our gross margins and EBITDA profitability. We have implemented calibrated price increases across our sales channels to partly offset the impact, although sustained recovery in margins will depend on raw material However, I would like to emphasize that this is a raw material-led cost challenge and does not change the underlying fundamentals of our business or our long-term growth strategy. Moving towards higher value products, one of our key priorities is to gradually strengthen our presence in the premium segment. We are consciously working towards increasing the We are encouraged by the progress so far with SMK's contribution to overall sales increasing We are increasing from approximately 13% in Q2 FY26 to 20% in Q2 FY27. This reflects the growing acceptance of our premium offerings and the progress we are making in improving our product mix. Export growth. Alongside strengthening of our premium portfolio, expanding our international business remains an important growth priority for starts. Today we have presence across more than 70 countries with SMK playing a significant role in our international expansion. We have made steady progress in scaling our export business, with export revenue increasing from Rs. 53.2 crores in FY24 to Rs. 127.6 crores in FY26. In H1 FY27, we recorded export revenue of Rs. 79.4 crores, that's growth of nearly 50% over H1 FY26, reflecting the growing scale of international operations. Hence, our focus will be on deepening our presence in existing markets by expanding into near geographies. We see meaningful opportunities across Europe, the US and Latin America supported by our established brands, wider product portfolio and a stronger distribution capability. An important step in this direction has been the incorporation of our wholly owned subsidiary in Italy, which will function as a warehousing and distribution hub for Europe. This will strengthen our international distribution infrastructure, improve suppliers, We are also investing in manufacturing capacity to support our growth ambitions. We commenced commercial production at our new plant on 30th October, 2026, adding 1.5 million units of annual helmet and boxes manufacturing capacity. With this addition, our total installed capacity now stands at approximately 11.5 million units per annum. We are further planning an additional capacity of 1.5 million units over the next 18 to 24 months, taking our planned installed capacity to approximately 12.5 million units. The expansion is particularly important from a scale and headroom perspective. Our existing manufacturing capacity was operating at a relatively high utilization level of approximately 83% as of September 30, 2026. With increasing demand across our domestic and international markets, the additional capacity provides us with the necessary headroom to support future growth, cater to larger opportunities, and respond more effectively to customer requirements. Our capacity expansion is therefore not merely about increasing production. It is about preparing the organization for its next phase of growth and ensuring that manufacturing capacity does not become a constraint as demand scales up. Product innovation. Another important area of focus is expanding our product portfolio beyond helmets and entering adjacent categories within the broader rider safety ecosystem. One of the key initiatives in this direction is our entry into riding jackets under the SMK grind through in-house manufacturing. We commenced production in September 2026. We are progressively scaling up this capability with plan of producing 10,000 units by March 27 and 40,000 units by next fiscal year. Riding jackets are an important part of the overall rider safety ecosystem. They are designed to provide riders with an additional layer of protection while riding. We believe this category offers an opportunity to leverage our established brand and presence and personal relationships while participating in a larger share of the rider's safety and riding gear requirements. In addition, we are preparing to launch our Bluetooth-based rider communication system in November 2026. This will allow riders to stay connected while riding and add another technology-led category to our product portfolio. These initiatives are strategically important as they create growth opportunities beyond our traditional helmet business. Our objective is to gradually develop a broader portfolio of products catering to the evolving needs of the rider community. Brand Building and Engagement We are also strengthening our brand visibility and engagement with the global riding community. As part of our marketing and international expansion initiatives, we are participating We have a great opportunity to educate the community, connect with riding enthusiasts, and strengthen brand awareness and product visibility in the domestic market. We view these platforms not merely as exhibition opportunities, but as important investments in brand building, customer engagement, and long-term market development. Looking ahead, we remain for growth for sales. A medium-term aspiration is to scale our overall revenue to rupees 1,000 crore with exports contributing approximately Thank you. Thank you once again for your continued trust and support. I look forward to sharing more details on our performance and addressing your questions. Consolidated financial performance. Quarter 2 financially at 27 performance. Our two-wheeler helmet and boxes volume stood at $2.04 million. Consolidated revenue stood at $183.1 perot, which grew by 18.6% year-on-year. EBITDA for the quarter stood at Rs.22.8 crores, decreased by about 23.7% year in year. EBITDA margin stood at 12.4% in Q2 FY27. PAT for the quarter stood at 14.7 crores, decreased by about 28% or year in year. PAT margin stood at 8.1% in Q2 FY27. Capacity utilization for two-wheeler helmet and boxes, EPS, and water decals stood at about 85%, 88%, and 64%, respectively, for Q2 and FY27. H1, FY27 performance. Our two-wheeler helmet and boxes volume stood at 3.99 million. Consolidated revenue stood at Rs. 352.8 crores, grew by 16.2% year-on-year. EBITDA stood at Rs. 42.3 crores, which decreased by 29.6% year on year. EBITDA margin stood at 12% in H1FY27. PAT stood at 27 crores, decreased by 33.8% year on year. PAT margin stood at 7.7% in H1FY27. Capacity utilization for two-wheeler helmets and boxes, EPS, and water decals stood at 83%, 87%, and 65% respectively for H1-FI-27. With this, I open the floor for the questions and answers session.

Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touch-down telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Nishita from Sapphire Capital Limited. Please go ahead.

Yes, hello, good morning. I had a few questions. My first question is on our CAPEX. So, since we are expanding our capacities also, what is our total CAPEX spend going to be in FY27?

Okay. Yeah, good morning, Nishter. So, our CAPEX spend for FY27 is going to be 58.22 crores for the new plant, and including the regular CAPEX, the total CAPEX is going to be 84.7 crores.

Okay, okay, understood. And my next question is on our new products. So, like, we are coming up with two new products. Jackets we've already started and communication system. So, are they both manufactured in-house only?

Yes, so the jackets are manufactured in-house and the Bluetooths, we are launching three products and out of the three products, one is completed with inside and two are assembled inside. Okay.

So, what's the total capacity for these products?

For the jackets, for next year, they said 40,000 is what we intend to sell and manufacture in the next financial year. And for the Bluetooth, the capacity is more than 2 lakhs a year. And we'll see how the market goes, but ramping up the capacity of Bluetooth is not a very big challenge.

Okay, okay. So, like, what's the revenue potential? Like, what's the target at this market for these new products? What sort of revenue potential are you expecting from these?

Starting off, I think the revenue potential from accessories, because I said 40,000 jackets, so that's close to about anywhere between 15 to 20 crores.

Okay.

The potential globally is much larger. This is only what we're looking at is the first year after we start production. So I think the potential is quite large because the accessories market, which includes the apparels, is quite large. The addressable market is quite large in the world. This will be your first year. So I think the first year target is anywhere between 15 to 20 crores. And Bluetooth also, the market penetration is quite strong right now. In certain markets, we see Bluetooth penetration to be as good as 60% in the development. Okay. But in the rural markets, the penetration is slightly low. So, I think there is an immense potential of ramping up scale on these products.

Right. So, initially, is it going to be that we are just going to sell these products domestically and then we will scale to exports? Or are we going to, from the first year, only going to do both domestic and export sales?

So, Bluetooth will be both domestic and exports. But I think for the apparels, we are more focused on India right now. For exports, we need to build new Rx, which we are building through this here now.

Okay, okay, understood. And the margins in these new products, are they similar to the current margins for helmets, or are they better?

I think they'll be in line with the helmets.

Okay, okay. And I'm assuming, so I'm sorry, I'm joining the call for the first time, but our margins for the studs helmets and SMK helmets are also going to be different, right? Like, because SMK is a premium product, you will enjoy higher margins in that. Am I correct?

That's true. SMK margins are higher.

So, these jackets and Bluetooth are going to be in line with the SMK margins or the studs margins?

So, jackets are in line with SMK margins and in Bluetooth. I would say we have SMK product and studs product and they will be in line with their own brand margins.

Okay, okay. And my last question would be on, if you could, like, what's the margin difference between SMK and Starts products? Like, what sort of margin do we enjoy in SMK and similar in, like, Starts?

So, I would say SMK margins are about close to 70% higher than studs margins, depending on what kind of times. But if I was to talk about percentage, that would be typically the ballpark figure anywhere between 70 to 80% depending on product to product. But as such, right now, because of the romptu pressures, both margins for both the brands are slightly down.

Right.

But when you compare both the brands, it's about 70 to 80% higher for SMK.

The next question is from the Nine of Rakesh. From Nine Rivers Capital Limited, please go ahead.

Hello, sir. Am I audible?

Yes, you are audible.

Hi, sir. Thank you very much for the opportunity and congratulations for a great setup number in this tough time, considering the raw material price increase as well as the capacity constraint. Sir, first question with respect to the volumes. You mentioned the volume was 20.4 million units in this quarter. Can you please give us a bifurcation of domestic as well as exposed?

Yes, yes. Can I ask Bharat to come in the CFO? Bharat, do you have the numbers?

Yes, sir. So, Rakesh, can you please repeat your questions about the numbers?

Bharat, with respect to the volume, 20.4 million was the volume for the total volume plus volume for the boxes and elements. Can you please bifurcate the export as well as the domestic volume?

Okay. So, domestic volume is approximately 35 lakhs, and export volume is approximately 4 lakhs.

This is H1. I think Rakesh is talking about quarter.

Okay. Yes. I'll give you the quarter number. Rakesh, for quarter number, I'll come back to you and share with our agents.

Sure. Varadji, I'll take it offline. Second question with respect to the EBITDA margin, And then, generally, it has been highlighted in the past call also. SMK has a higher margin than the stats, and then the previous question also you highlighted. First, this first financial year and the second call also, we have witnessed a strong improvement in export sales, but the margins have not come back, has not witnessed a sharp improvement. Any reason for that?

So, I think improvement mainly because of the raw material prices, the margins for both the brands have gone down, so studs and SMK, so I think as soon as the raw material, because we see this more of a temporary thing, it's like a cyclical thing, the moment the raw material prices come down, we will see margin improvement, and second impact was because of the wage increase, close to about 30-35% in April, that also impacted the margins, but that I think we recovered with the price increase of the products, but the raw material prices The price increase has gone so high as the price increase, yet is not able to compensate the complete normative price increase, and we're just waiting and watching right now to see if the normative price comes down, because we think it's more cyclical than a fundamental problem in the business.

Sudharjik, just going to the point of the last concern, you highlighted that polymers, parenics prices have gone from 120, 130 to 200, and it came back to 180, and in order to compensate So, what is the price like that we have taken in the Q1 and Q2, and is there any further price like that we need to take in order to venture, in order to, in order to come back to the normal gross margin?

So, the price increase that we've taken is 9%, which was slightly We will be calibrated because about 7% 6.5% price increase we got in the Q1 and the balance we got in the Q2 because there were some older orders which were committed at the older prices export specially. So now after Q2, all the price increase is now into the system and the price increase net is about 9%. About future price increases as I said this quarter, how the raw And then we will decide in Q4 if another price increase is required. As I said, I firmly believe that this cyclical. So we will still want to wait a little bit before we take another price increase. But for sure if the prices don't soften, we will take another price increase.

Okay. Just a follow-up question on that. So last quarter you highlighted how the strategic prices are moving on. Can you highlight also in this quarter, like Q2 and Q3, how the Styranex prices can be moving on?

So, Q2 was slightly better than Q1. In Q3, we were expecting Styranex to soften, but they haven't softened yet. They're still elevated. So, as I said, we will wait for this quarter before we take a call for pricing fees.

Okay, sir. Thank you. Thank you, team. And I wish, greeting, newer greeting, and Diwali wishes to you and your team. Thank you.

Thank you. Happy Diwali to you.

Thank you. The next question is from the line of Sakhir D. Patil from IASide FenTrade Private Summit. Please go ahead.

Good morning to the team. I have two questions. The first question to Mr. Thurana is, while we have maintained strong leadership in our core mass market helmet space, And we are now pushing heavily into the premium category and international markets with our Italian subsidiary. Just want to understand a forward-looking guidance on what is the biggest execution risk of scaling up in these highly competitive premium and global markets. And how do you plan to protect our core domestic market share if aggressive local players try to capture our volume? That's the first question. I'll ask my second question after this. Thank you.

Yeah, sure. Good morning. I think the biggest risk on execution on the foreign markets is the speed at which we actually ramp up operations and we're able to scale up sales because in these foreign markets, the fixed costs are very high. So if you don't scale up quickly, so you will see for a certain period of time that the subsidiaries might make a slight loss. So I think the biggest execution risk is the ramp-up speed. I don't see any other execution risk as such from the subsidiary point of view. And I think to answer your second question on the domestic, how do you try to protect? I think our strategy is more around the product and creating experience for the consumer because the experience part is very important and that's where the discretionary power of the consumer comes in. If you're able to have a good product and experience, right, price is not the only factor. Now, if it was something that is driven only by price, then it's more difficult that you discount, you scheme. But I think that it's more around the product and experience that we wish to expand our business domestically as well.

Thank you. My second question to Mr. Goyal is, as we currently are deploying a major capital expansion plan across our facilities, What is the main risk in our near-term profitability if these new production lines faces any delays, or if consumer demand for two-wheelers slows down in the coming days, especially over the winter? And what major external cost pressures are you most focused right now?

See, whereas production capacity is concerned, we already have started our new plant phase 1, and currently we are seeing good demand. As such, there is no, you know, any demand issue. Thank you. And as of now, main cost pressure is related to raw metal prices only, which we see that will soften, but as of now, we are in wait-and-watch situation.

Thank you, and best wishes.

Thank you.

Thank you.

Thank you. Participants, anyone who wishes to ask a question may press star and 1 on the touchstone telephone. The next question is from the line of Rohit Kumar from ADM Advisors. Please go ahead.

Sir, thank you for the opportunity. So, we have expanded our capacity by 1.5 million and 1.5 million is under planning. So, how are you looking at from next five-year perspective? Does the ambition remain to strengthen its leadership in Helmet or is it the large objective to build a comprehensive global rider safety and accessory platform?

Yeah, I think the main idea is that going forward accessories will form a slightly larger part of the business, but helmets will still be a part of the business and this global expansion is built around, I would say, helmets and rider accessories and that's how we see the brand going. But yeah, it will be related to motorcycle riding experiences, and we want to become the global leader in this space.

Okay, sir. Answer my second question was, which geographies offer the largest strategic opportunity for studs over the next 3-5 years? Any guidance on this? And also, what differentiates this market in terms of consumer preference, regulations, and competitive intensity?

So I would place the opportunity in two baskets. One is the Latin American market where it's more of a quantity driven. It's not as price sensitive as India and it's a quantity driven market because it's a larger motorcycle market. Second, I would see Europe and U.S. as a more of a premium market where you have good margins and higher revenues and they're not so small markets. They're also a larger market. And I think it will be important for us to grow in the next three to five years.

Okay, sir. Thank you for answering my question. That's it from my side.

Sure. Thank you. Thank you. Anyone who wishes to ask a question may press star and one on the touchstone telephone. The next question is from the line of Mihir from MB Capital Limited. Please go ahead.

Yes, sir. Good morning. So, I had a question regarding our international presence. So, does you see any opportunity to accelerate our growth through some inorganic initiatives such as acquiring some established brands, manufacturing a set of systems like distribution business? And it's like you asked, so which geographies would you currently have a strategic interest in?

Yeah, good morning. I don't think so. We're looking at an inorganic opportunity in the same space as helmets. Because we feel all the manufacturing of helmets is happening mainly in India and China and Vietnam, I would say. Yeah, if there is a historic legendary brand which is up for sale, we can do it. But as of now, we have no plans for an inorganic opportunity within the helmet space. And as we go forward, we'll have a look at, I would say, associated spaces.

Thank you.

The next question is from the line of Saurabh Datta from Manera Asset Advisors. Please go ahead.

Yeah, hi. Thank you for the opportunity. Just one question. The overall guidance for FY27 was for around 8 to 10% volume growth. In Q2, however, volumes of state lattice, we just wanted to understand any specific indicators on this.

Yeah, I think we will my guidance would be we still remain in line with the growth volume growth that we had given the guidance on earlier which is about 8 to 10 percent and I think you will see that pick up in H2 this year because of the capacity increase. H2 I would say Q4 will have a bigger jump because we just started on 30th October the first the other plant. So, November, December will not be as high because we are ramping up, but you will see Q4 to be better volumes. And as we had given a guidance earlier, we stick to the same guidance.

All right. Thank you so much.

Thank you. The next question is from the line of Nikhil Upadhyay from Simple Innovative Brands Private Limited. Please go ahead.

Hello. Good morning. I hope I am on you.

Yes, good morning. Please go ahead.

Yeah, so first question is on the accessories part around the helmet, which you talked about earlier. If I have to understand, how do you develop the brand position in the accessories? Would it follow a developed brand? Once you develop that brand in the helmet, which then makes the people move toward the accessories? Can we develop accessories as a separate brand and with no influence from the helmet size?

Okay, good morning. I think because the point of sale is similar, so where you have helmets from the same platforms or shops, so the consumer is aware of the brand, it's always easier to develop the accessories within the same brand. So, I would look at product and brand combination. I will look at it more from a separate product category kind of a thing and not, so brand helps the separate product category growth.

Okay, and would it, in the initial year, would it, or like currently, is it purely outsourced model for accessories or are we putting capacities for manufacturing? And how large is the capacity?

Most of it is manufactured by us, varying a very few which are outsourced. And I think capacities, accessories come into various kind of categories. For example, your luggage business, which is a hard accessory business. Your apparel business, which is a soft accessory business. Your Bluetooth, which is an electronic accessory business. So I cannot give you a club number on the accessory capacity. But yeah, individually, these capacities are different and we are ramping up these capacities in house as well.

Okay. And over the last three years, what is the CADR growth for the accessories for us?

I don't have that number now, but what I can tell you is accessories now form a higher percentage than as compared to last year's. So, it's growing at a faster pace in volumes and revenue as a percentage. But the absolute number will still be small because it's a small part of the business. But percentage-wise, that will be a larger growth for us. Even in this year, I will say that will be a larger role.

Okay. And last question on accessories. So, if you look at the margin profile, as you always say, SM brand has a better margin than studs. Would accessories fall in between the two, or would it be much better than the premium brand? Where do accessories margin fall?

So, accessories margin are largely in line with the brand margins on helmets. I would say a few exceptions sometimes, but largely they are in line with the brand margins across limits as well.

Okay. Second was on the exports, and in Europe, in I think last six, nine months, they've launched distributors, they've added distributors in multiple countries, warehouses. So, based on your last six, nine months of investments in those markets and product launches, where do you think we need to work more on and what are the things which have been your learning and you are trying to improve upon? Like, what's the feel you are getting in terms of our ability to crack the market?

I think I have a strong feeling we are going in the right direction because if you look at our growth H1 last year versus H1 this year in exports, it's almost, I think we're going in the wrong direction, going in the right direction, but I see this more of as an investment here because Italian subsidiary coming up, there are fixed costs to start up. So, these costs will be spent mainly in Q2 and Q3. So, Q2 is gone, Q3 is on. So, from next year, I will see profitability, or I would say the fixed cost will go away from the subsidy establishment. And we will see better margins coming on the consolidated load. But I think the 50% growth that we've done is already a sign of how the growth is happening. And again, that's what we were planning. We were at 5% this year, but in the first half year, it's much better. So I would not say that I'm too worried on the export front.

So the brand acceptance has been better with the distributors? Would you say, like, based on the growth that we are looking at, at the distributor level and at the retail level, both the acceptance and the growth is similar?

Yes, the acceptance. We are growing at 50% and we haven't added a lot of markets in H1 this year. So it's the existing markets which are growing at that pace. But I always believe that when you have a smaller share of the market, it's very easy to take market space. But when you have a bigger market share, it's more difficult to protect that market space. So at the moment, I think in the next three to five years, we're in a good space while we're taking market share. Once you become a global, I would say a significant force globally, then you have to start protecting your market share, which will happen.

And last question, and I'll come right in the queue. See, because you've been listed recently, and we've not seen the RM cycles for you, we don't have a listed history of how the RM cycles and the price volatility work. But based on your experience of last 15-20 years, how has the RM inflation and deflation played out for you in terms of the end pricing? Like, how much of it gets retained? How much needs to be passed on? And generally, how is the competitive behavior? Like, do they follow a similar pattern of retaining some amount of price increases or it's like when the RM deflation hits, everything needs to be passed on?

So, I think this is the second extraordinary cycle we're seeing. The first extraordinary cycle we're seeing was in COVID when the price is really short up. In the last 10 years, if you have a look at our balance sheet, that was, I think, a couple of years in between, which was, I think, 22 and 23, you'll see a dip similar to this dip. And so, I would say this is a second cycle. Last time, the cycle continued for two years. This time, we expect it to be slightly smaller. That is our expectation. I don't know how the geopolitical situation works out to be, but I think in terms of how much is to be passed on. So, it's always better to calibrate your pass on price increase to the market because suddenly if you increase the price by 20% and the raw material starts falling, then you have to discount which is never good for a brand, so you have not reduced our prices ever. So, that's why it's the same philosophy again this time around. And I think there are cycles in the business, but these two have been extraordinary cycles.

And in this deep listening period, how does the competition behave? Like, do they have a rationality on the pricing, or in order to get volume, they do a larger discounting? What's your experience, usually?

So, on the mass market, which is an entry level, we see deep discounting happening when the prices soften a little bit, but on the premium segment, and I would say in the mid-segment, no change happens before end perspective. The person who is buying a bike, a 200 rupee increase doesn't even matter. I mean, he's not looking for a 200 rupee discount when he's buying a bike or he's buying a helmet. So, on the mid and the premium segment, we don't see any kind of pressure on the entry level. The pressure is there, but then the market kind of adjusts to it over a year's period. That's how normally the markets behave.

Fine. Thanks. I'll come back in with you. Thanks. Sure. Thanks.

Thank you. We have the next follow-up question from the line of Nishita from Safar Capital Limited. Please go ahead.

Yes. Hello. I'm not a little.

Yes.

Yes. So, I just wanted to understand. So, currently, what accessories are we already like manufacturing?

So, we are doing motorcycle hard luggage. We are doing helmet locks, cable locks. We are doing, as we said, Bluetooth accessories. Bluetooth is what we are launching. We are doing jackets. We are doing gloves. We are doing motorcycle goggles. We are doing some rain wear. So, everything related to motorcycle accessories. We are doing balaklavas. We're doing sleeves. I would say about 70 to 75% of your manufacturing in house of these items.

Right. So, like our helmet, so the 11.5 million units of capacity that you have, that is just for helmets, right?

Yes. And motorcycle luggage, which is a part of the accessory business.

Okay. So, what is the capacity for other accessories?

So other accessories, I'll have to define category by category, because as I said, there are many categories, and the capacity for talking about a garment or a model, right? A jacket will have a different capacity versus, for example, a balaclava. But similar lines with stitch, the same stuff. But I can get back to you category by category, offline, I think we can connect through SGA.

Yeah, sure. Yeah, we can do that. And my next question is, so, like in H1, if I did it, you had a revenue growth of around 16%. If you could give some sort of guidance, what sort of growth can be expected?

I think on the growth side, I had earlier given my guidance on high teams, anywhere between 15% to 19%. So, we are in line. The Q2 growth was close to about 19%, 18 point some percent, and the half year is 16%.

I'm sorry, your voice is cracking.

I said we are high teens, which is between 15% to 19%, and I think we are in line with earlier guidance. Nothing has changed there.

Okay, okay, understood. That is it for my time to finish.

Thank you. The next question is from the line of Kanaal Savnits from Nine Roberts Capital Limited. Please go ahead.

Hey, hi. Thanks a lot. I have a couple of questions on exports. First is that your overall growth has been phenomenal, much higher than what you have been guiding. What has taken you by sort of surprise with this? I mean, based on your experience and all three geographies, U.S., Europe, and rest of the world have been growing much ahead of what your expectation was. So, just your thoughts on this, and if you could sort of granularize it by saying what is happening in e-geography, and what could be the sustainable rate from here on?

So, I would say that we're not surprised, because we have a strong product portfolio, but these are all estimates, right? When you think that, okay, you see a space for yourself in the market, you think that you can grow at that number, but sometimes the market responds better than that. And I think, as you said, the encouraging part is we are growing in all the three geographies. It's not one geography. So, which means that the product is well accepted everywhere. In terms of further growth, I think 50% is not sustainable over a long-term period. My guidance has always been sustainable over a long-term period. It's more on exports, more like 20-25%. When I say long-term, it's more like five years. But I think short-term growth, we have given a guidance of about 30-35%. We are doing slightly better there. But I would still like to say, okay, there will be years of 50% as well, but short-term, medium-term guidance could be 30%, long-term could be about 25% on exports. Because when your base is larger, it is difficult to grow at 50% year over year.

Got it. Any specific thing you want to highlight, especially in the U.S., which is now about 10% of your business?

No, I think we're going pretty strong right now in the U.S. and also in other markets as well. So markets are behaving quite similar in a similar fashion all across. Even Latin America is going at a very fast pace. So I don't see any difference in patterns across geography. It is just a good growth all across, I would say. And we expect this to go on for some time right now. As I said earlier, maybe not 50% less, but good growth numbers will come in.

Sure.

Thank you. We take that as the last question for today. I now hand the conference over to the management for closing comments.

Thank you all for joining us today. We hope you have addressed your questions and provided valuable insights into a performance and strategy. Happy Diwali to you all. If you have any further questions or need additional information, please feel free to reach out to our team Thank you, sir.

On behalf of Starts Accessories Ltd., that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Thank you, everyone.