Cupid Hits Upper Circuit – Net Profits surged by 283% in Q1FY25

Introduction

Cupid Limited, India’s premier manufacturer of male and female condoms, water-based lubricant jelly, IVD kits, and deodorants, has declared its financial results for the quarter ended June 30, 2024. The company has showcased remarkable growth across various financial metrics, reflecting its strategic initiatives and operational efficiency.

Financial Highlights

Rs in Lakhs

Significant Revenue Growth

Cupid Limited’s total income for Q1 FY25 stood at Rs 4402.60 lakhs, marking a 25.1% increase from Rs 3519.77 lakhs in Q1 FY24. This substantial growth demonstrates the company’s ability to scale its operations and capture market opportunities effectively.

EBITDA Surge

The company’s EBITDA soared by 265.6%, reaching Rs 665.91 lakhs compared to Rs 182.12 lakhs in the same period last year. The EBITDA margin improved by 1161 basis points to 17.02%, indicating enhanced operational efficiency and cost management.

Profit Before Tax (PBT) and Net Profit (PAT)

Profit Before Tax saw an impressive increase of 374.6%, reaching Rs 1056.37 lakhs from Rs 222.57 lakhs in Q1 FY24. Similarly, the Net Profit grew by 282.6%, amounting to ₹ 825.51 lakhs compared to Rs 215.79 lakhs in the previous year. The PAT margin expanded by 1469 basis points to 21.09%.

Operational Milestones

Expansion into New Markets:

The board has approved the incorporation of a wholly owned subsidiary in the UAE, aimed at capturing market share in the GCC region. This strategic move will enable Cupid Limited to tap into new growth avenues and strengthen its international presence.

Infrastructure Development:

The design of a new greenfield plant at Palava is finalized, with operations expected to commence by the end of 2025. This facility will significantly boost the company’s production capacity, aligning with its long-term growth objectives.

Product Line and Market Penetration:

The IVD business has turned PAT positive, and the company has launched pocket perfumes and deodorants for the B2C market. Additionally, products like perfume products, hair oils, massage oils, and creams are in development, indicating a diversified product portfolio.

Strategic Hires and Technological Advancements:

Cupid Limited has made notable hires in its B2B export team and has commenced the implementation of the SAP S4HANA ERP system, which will streamline operations and enhance efficiency. The company is also progressing with CE Mark and WHO Prequalification Certification processes for its best-selling IVD tests and has renewed its US FDA Approval process for the Cupid Version 3 Female Condom.

Management Commentary

Commenting on the results, Mr. Aditya Kumar Halwasiya, Managing Director of Cupid Limited, said:

“We are delighted to announce a good set of numbers for the quarter. We have continued to bring in efficiencies in overall production and domestic distribution. The Company’s foray into B2C in India in the last seven months has resulted in net revenues of ₹ 12.50 crore, and we are going to expand this pie substantially moving forward. The improved margins are very well maintainable in the long run. Once the additional capacities are up and running with matching orders from across the world, we would further get the benefit of scale of operations. As part of our Indian B2C expansion, we have built our presence across over 50,000 retail touchpoints in a short span of time and are on the horizon to reach 100,000 touchpoints by the end of the current calendar year. We are prioritizing our brand expansion by initially focusing on general trade and then modern trade in the domestic market. Internationally, we would continue to seek opportunities to expand our brand presence through partnerships with distributors that have a strong presence in their respective markets.”

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