Studds Accessories (NSE:STUDDS) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to STUDDS Accessories Limited Q2 and H1 FY 'twenty seven 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. 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 of 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.

0:46 Shadhar Bhushan Karana. Thank you, and over to you, sir. Thank you. Good morning, everyone, and thank you for joining Studds Accessories Limited's q two and h one FY twenty seven 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 --, SGA, our investor relations adviser. The first half of FY twenty seven 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.

1:33 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 prices stabilizing. However, I would like to emphasize and emphasize that this is a raw material lead cost challenge and does not change the underlying fundamentals of of our business or our long term growth strategy. Premiumization. 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 contribution of premium products to our overall business with SMK playing an important role in this journey. Our efforts are focused on expanding our premium product portfolio, introducing new designs and features, and catering to the evolving preferences of consumers.

2:26 We are encouraged by the progress so far with SMK's contribution to overall sales increasing from approximately 13% in q two f y twenty six to 20% in q two f y twenty seven. 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 STUDDS. Today, have presence across more than 70 countries with SMTA playing a significant role in our international expansion. We have made steady progress in scaling our export business with export revenue increasing from rupees 53.2 crores in f y twenty four to rupees $1.27.6 crores in f y twenty six. In h one f y twenty seven, we recorded its core revenue of rupees 79.4 crores.

3:19 That's growth of nearly 50% over h one f y twenty six, reflecting the growth... Growing scale of international operations. Hence, our focus will be on deepening our presence in existing markets by expanding into new 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 supplier responsiveness, enable us to build closer relationships with customers and distributors across European markets. Through these initiatives, we aim to build a stronger and more scalable international distribution network, which will support the next phase of growth in our export business.

4:12 Expanding manufacturing capabilities. Alongside strengthening our market presence, we are also investing in manufacturing capacity to support our growth ambitions. We commenced commercial production at our new plant on 10/30/2026, adding 1,500,000 units of annual helmet and boxes manufacturing capacity. With this addition, our total installed capacity now stands at approximately 11,500,000 units per annum. We are further planning an additional capacity of 1,500,000 units over the next eighteen to twenty four months, taking our planned installed capacity to approximately 12,500,000 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 09/30/2026.

5:00 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. Of the key initiatives in this direction is our entry to riding jackets under the SMK brand 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 forty thousand units by next fiscal year.

5:53 Riding jackets are an important part of the overall rider safety ecosystem. They're designed to provide riders with an additional layer of protection while We believe this category offers an opportunity to leverage our established brand and presence and customer 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 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.

6:41 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 expense... Expansion initiatives, we are participating in Ikemai in Milan, Italy, one of the world's leading international motorcycle exhibitions, which brings together global manufacturers, distributors, industry participants, and group... And motorcycle enthusiasts. This provide us with an important platform to showcase our STUDDS and SMK brands, demonstrate our expanding product portfolio, and strengthen relationships with international distributors and potential business partners. Similarly, our participation in India Bike Week at Panchini will allow us to engage directly with India's growing motorcycling community, connect with riding enthusiasts, and strengthen brand awareness and product visibility in the domestic market.

7:31 We 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 of growth for sales. Our medium term aspiration is to scale our overall revenue to rupees thousand per hour with exports contributing approximately 25. Thank you once again for your continued trust and support. I look forward to sharing more details on our performance and addressing your questions. Financial performance. Quarter two financial year twenty seven performance. Our two wheeler helmet and boxes volume stood at 2,040,000. Consolidated revenue stood at rupees 183.1 crore, which grew by 18.6% year on year.

8:21 EBITDA for the quarter stood at rupees 22.8 crores, decreased by about 23.7% year on year. EBITDA margin stood at 12.4% in q two f y twenty seven. PAT for the quarter stood at 14.7 crores decreased by about 28% of year on year. PAT margins stood at 8.1% in q two f y twenty seven. Capacity utilization for two year helmet and boxes, EPS, and model decals stood at about 85%, 88%, and 64%, respectively, for q two f y twenty seven. H one f y twenty seven performance. Our 200 boxes volume stood at 3,990,000. Consolidated revenue stood at rupees $3.52.8 crores, grew by 16.2% year on year.

9:12 EBITDA stood at rupees 42.3 crore, which decreased by 29.6% year on year. EBITDA margin stood at 12% in h one f y twenty seven. PAT stood at 27 crores, decreased by 33.8% year on year. PAT margin stood at seven point seven percent seven. Capacity utilization for two wheeler helmets and boxes... E... Two wheeler helmets and boxes, EPS, and water decals stood at 83%, 87%, and 65% respectively for h one f y twenty seven. With this, I open the floor for the question and answer session. Thank you very much. We will now begin with the question and answer session.

10:15 The first question is from the line of Nishita from Sapphire Capital Limited. Please go ahead. So 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 FY 'twenty seven? Okay. Yeah. Good morning, mister. So our CapEx spend for f y twenty seven 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, they are coming up with two new products. Jackets we've already started and communication system.

11:09 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 completely built inside and two are assembled inside. Okay. So what's the total capacity for these products? For the jackets for next year, you said 40,000 is what we intend to sell and manufacture in the next financial year. And for the Bluetooth, the the capacity is more than two 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?

12:01 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 fifteen to twenty 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 the accessories market, which includes the panels, is quite large. The addressable market is quite large in the world. And this will be your first year. It's like first year target is anywhere between 15 to €20. 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 developed.

12:50 Markets. But in the rural markets, the penetration is slightly low slightly low. So I think there's an immense potential of ramping up scale on these products. Right. So, initially, is it going to be that we're just going to sell these products domestically and then we'll scale to export, 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 products which we are building through this year now. Okay. Okay. Understood. And the margins in these new products, are they similar to the current margins for helmets, or are they better?

13:37 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 STUDDS helmet and SMK helmets are also going to be different. Right? Like, because SMK is a premium product, we'll enjoy higher margins than that. Am I correct? That's true. That's true. SMK margin is fine. So the jackets and Bluetooth are only in line with the SMT margin or the STUDDS margins? So our jackets are in line with SMT, Martin, and in Bluetooth. I would say we have SMK product and Studds product, and they'll 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 Studds products?

14:31 Like, what sort of margin do we enjoy in the same trip and similar in the, like, different? So I would say SMK margins are about close to 70% higher than STUDDS margins depending on what kind of times. But if I was to talk about percentage, that will typically... The ballpark figure anywhere between 70 to 80% depending on product to product. But as such, right now, because of the raw material pressures, both margins for both the brands are slightly down. Right. But when you compare both brands, it's about 70 to 80% higher for the. 17 to 18%. Seven zero. 70 to 80% gross margins. Okay. So SMK gross margins are 70% higher.

15:17 Than Studds. Yeah. Yeah. Okay. Understood. Yeah. Thank you so much. That is it, Shneur. That's fine. The next question is from the line of Rakesh from Nine Rivers Capital Limited. Sir, am I audible? You're audible. Hi, sir. Thank you very much for the opportunity, and congratulations for a great set of number in this tough time considering the raw material price increase as well as the capacity constraints. Sir, first question with respect to the volumes. You mentioned the volume was 20,400,000 units in this quarter. Can you please give us a bifurcation of domestic as well as exports? Yes.

16:04 Yes. Can I ask Bharat to come in, the CFO? Bharat, do you have the numbers? Yes, sir. Rakesh, can you please repeat your questions about numbers? So, Varshi, with respect to the volume, 20,400,000 was the volume for the total volume plus volume for the boxes and the elements. Can you please bifurcate the export as well as the domestic volume? Okay. So domestic volume is approx 35 lakhs and export volume is approx 4 lakhs. But this is H1. I think Rakesh is talking about quarter. Okay. Yes. Just a minute. I'll give you the quarter number. Akash, for quarter number, I'll come back to you and share with our IR agents. Sure. Varaji, I'll take it offline.

17:02 Second question with respect to EBITDA margin. Generally, it has been highlighted in the past call also. SMTA has a higher margin than the start and then the previous question also you highlighted. But sir, this financial year and the second quarter also, we have witnessed a strong improvement in export sales, but the margins have not come back. The... Has not witnessed a sharp improvement. Any reason for that? So I think improvement mainly because of raw material prices. The margins for both the brands have gone down, so STUDDS and SMK. So I think as soon as the raw material will receive, it's 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 It comes to about 30, 35% in April.

17:52 That also impacted the margins. With that, I think we recovered with the price increase of the products. But the prices have gone so high that the price increase yet is not able to compensate the complete raw material price increase. And we're just waiting and watching right now to see if the raw material price comes down because we think it's more cyclical than a fundamental problem in the business. So, Studds, just going to the point of the last call, you highlighted that polymers, tyrannics prices have gone from 120,130 to 200, then it came back to 180. And in order to compensate that price increase, you had highlighted that we are expiring to take 9% price hike that will suffice the gross margin, that will suffice the price increase.

18:38 What is the price hike that we have taken in the Q1 and Q2? And is there any further price hike 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 calibrated because about 7%... Six and a half to 7% pricing increase we got in the q one and the balance we got in the q two because there were some older orders which were permitted at the older prices, export specialty. So now after q two, the... All the price increase is now into the system, and the price increase net is about 9%. About the future price increases, as as I said, this quarter, how the raw material prices are up, and then we will decide in q four if another price increase is required. As I said, I firmly believe that it's cyclical.

19:30 So we 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 Right? Okay. Just last follow-up question on that. So last quarter, you highlighted how the statistics prices are moving on. Can you highlight also in this quarter, like q two and q three, how the statistics prices can be moving on? So q two was slightly better than q one. In q three, we were expecting Stellantix to soften, but they haven't softened yet. They're still elevated. So we... As I said, we will wait for this quarter before we take a call for pricing, please. Okay, sir. Thank you. Thank you, team, and I wish the greeting... Newer greeting and the value wishes to you and your team. Thank you. Thank you. Happy to.

20:24 Thank you. The next question is from the line of Safar D. Patil from Airside Fintreat Private Limited. Please go ahead. Good morning to the team. I have two questions. The first question to Mr. Furala 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.

21:14 Thank you. Yeah. Sure. Good morning. I think the 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 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 the consumer because the 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 your scheme. But I I I think that it's more around the product and the experience that we wish to expand our business domestically as well. Thank you. My second question to mister Goel 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 line faces any delay

22:45 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 one. And we currently, we are seeing good demand as such. There is no any demand issue. 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.

23:41 Thank you. Participants, anyone who wishes to ask a question may press star and one on the touch tone telephone. The next question is from the line of Rohit Kumar from ADM Advisors. Please go ahead. Yeah. Sir, thank you for the opportunity. We... So we have expanded our capacity by 1,500,000, and 1,500,000 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 bigger 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'll be related to motorcycle riding experiences, and we want to become the global leader in this space.

25:00 Okay, sir. And, sir, my second question was, which geographies were the largest strategic opportunity for STUDDS over the next three, five years? Any guidance on this? And, also, what differentiate 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 US as a more of a premium market where you have good margins and higher revenues, and they're not so small markets.

25:46 They're also largest market. Geographies where 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. 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 initiative or such as acquiring some established brand, manufacturing a set of some, like, distribution business?

26:38 And if, you are, 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. We'll repeat all the manufacturing of helmets is happening mainly in Indonesia, 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 Hilbert space. And as we go forward, we'll have a look at, I would say, associated spaces, but no plans as of now. Okay. Yeah. That was my... Yeah. Awesome. Thank you. Okay. Sure. Thank you.

27:25 The next question is from the line of Saurabh Datta from Menera Asset Advisors. Please go ahead. Yeah. Hi. Thank you for the opportunity. Just one question. The overall guidance for FY 'twenty seven was for around eight to 10% volume growth. In q two, however, the volumes have stayed flat. We just wanted to understand any specific indicators on this. Yeah. I think we will... My guidance would be we we still remain in line with the growth... Volume growth that we had given the guidance on earlier, which is about eight to 10%. And I think you will see that pick up in h two this year because of the capacity increase. H two, I would say q four will have a bigger jump because we just started on October 30, the first...

28:13 The other plant. So November, December will not be as high as we're ramping up, but you'll see q four to be better volumes. And as we had given a guidance earlier, we stick to the same guidance. Alright. Thank you so much. Thank you. The next question is from the line of Nikolopadhyay from Simple Innovative Brands Private Limited. Please go ahead. Hello? Good morning. I hope I'm audible. Yes. Good morning. Please go ahead. Yeah. So first question is on the accessories part around the helmet that you talked about earlier. If I have to understand how do you develop the brand position in the accessory, would it follow developed brand?

29:06 Once we develop that brand in the helmet, which then makes the people move towards the accessories, or can we develop accessories as a separate brand and with no influence from the helmet side? Okay. Good morning. I think because the point of sale is similar, so where you have helmets, you have from the same platforms or shops. So the consumer is aware of the brand. It's easier... Always easier to develop the accessories within the same brand. So I will 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...

29:55 Or, like, currently, should it be only outsourced model for accessories, or are we putting capacities for manufacturing? No. Most of the is the capacity? Most of the manufactured by us, barring a very few which are outsourced. And I think capacities, accessories come into various kind of categories. For example, your 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 few years, how is the... What is the CAGR growth for the accessories for us?

30:44 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, yeah, 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'll say that will be a larger growth. Okay. And last question on. So if you look at the margin profile, as you always say, SM brand has a better margin than Studds, would accessories fall in between the two, or would it be much better than the premium brand? Where do where do accessory brand margin fall? So accessories margin are largely in line with the brand margins on helmets.

31:34 I would say a few exceptions sometimes, but largely, they are in line with the brand margin across helmets as well. Okay. Second one on the exports in in Europe, in, I think, last six, nine months, they've launched distributors. They've added distributors in multiple countries, warehouses. Based on your last six, nine months of investment in those market and product launches, where where do you think we need to work more on? And what are the things that you... 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, h one last year versus h one 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 an investment here because the Italian subsidiary coming up, there are fixed cost to start up.

32:39 These costs will be spent mainly in q two and q three. So q two is gone. Q three is on. So from next year, I will see profitability or I would say the the fixed cost will go away from the subsidy establishment, and we will see better margins coming on the consolidated. But I think the 50% growth that we have done is already a sign of how the growth is happening, and that's what we were planning 5% this year. But in the first half year, it's 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 distributor? 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?

33:36 Yes. The acceptance we we are growing at 50%, and we haven't added a lot of markets in h one 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 a good space where we're taking market share. Once you become a global... Or I would say, significant force globally, then you have to start protecting your market share, which will happen about three to five years hence. Okay. And last question, and I'll come back in the queue. See, we... Because you're being listed recently, and we're not seen the RN cycles for you. We don't have a listed history of how the RN cycles and the price volatility work.

34:24 But based on your experience of last fifteen, twenty years, how has the RN 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've seen was in COVID when the prices really shot up. In the last ten years, if you have a look at our balance sheet, that was, I think, couple of years in between '22 and '23, you'll see a debt similar to this dip. And so I would say this is a second cycle.

35:14 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 your pass on price increase to the market because suddenly, if you increase the price by 20% and the market starts falling, then you have to discount, which is never for... Good for a brand. So you have not reduced our prices ever. So that's why it's the same philosophy again this this time around. And I think there are cycles in the business, but these two have been extraordinary cycles. And in this, 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?

36:07 What's your experience, basically? So I'll just... Yeah. On the mass market, which is the entry level, we see deep discounting happening when the prices soften a little bit. But on the premiums segment, and I would say in the no change happens because perspective, the person who's buying about 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 in 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 live. Fine. Thanks. I'll come back in the queue. Thanks. Sure. Thanks. Thank you.

36:55 We have the next follow-up question from the line of Nishita from Sapphire Capital Limited. Please go ahead. Yes. Hello. Am I audible? Yes. Yes. So I just wanted to understand. So currently, what accessories are we already, like, manufacturing? Mhmm. So we are doing motorcycle hard luggage. We're doing helmet locks, cable locks. We're doing, as we said, Bluetooth accessories is what we're... Bluetooth is what we're launching. We're doing jackets. We're doing gloves. We're doing ski motorcycle goggles. We're doing some rainwear. So everything related to motorcycle accessories, we're doing balaclavas. We're doing sleeves. I would say about 70 to 75% in manufacturing in house of these items.

37:47 Right. So, like, our our helmet... So the 11,500,000 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 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 garment. Right? A jacket will have a different capacity versus, for example, a balaclava. But similar lines will stretch the same stuff, but I can get back to you category by category offline.

38:34 I think we can connect through SGA. Sure. Sure. Yeah. We can do that. And my next question is, so, like, in h one, if I really can... You had a revenue growth of around 16%. If you could give some sort of guidance, full year, a final different what sort of growth can we expect? I think on the growth side, I'd earlier given my guidance on high teens anywhere between 15 to 19%. So we are in line. Q two growth was close to about 19%, 18 some percent, and the half year is 16%. So we yes. I'm sorry. Your voice is cracking. Oh, I said I said we are high teens, which is between 15 to 19%, and I think we are in line with the early guidance. Nothing has changed there.

39:27 Okay. Okay. Understood. That that is it for me. Thank you so much. Okay. You. The next question is from the line of Kunal Sannev from Nain Ribad 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, on your experience in 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 each geography and what could be the sustainable way from here on.

40:24 So I would say that we... 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... And it's more like 20, 25%. When I say long term, it's more like five years. But I think short term growth, we will... We have given a guidance of about 30 to 35%. We're doing slightly better there. But I would still like to say, okay. There'll be years of 50% as well, but short term, medium term guidance would 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.

41:25 Got it. Any specific thing you want to highlight, especially in The US, which is now about 10% of your business? No. I think we we have... We're growing pretty strong right now in The US and also in other markets as well. So markets are behaving quite sim... 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 our 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. Thanks a lot. That's all from my side.

42:13 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 we have addressed your questions and provided valuable insights into our performance and strategy. Happy Diwali to to you all. If you have any further questions or need additional information, please feel free to reach out to our team or our investor relations adviser at SGA. Thank you. Thank you, sir. On behalf of STUDDS Accessories Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you, everyone.