Any current/future new fundraising through debt or equity?

The company is considering selling promoter stakes, primarily for personal reasons, with no fixed percentage or mode (IPO or preference shares) decided yet. They are open to offers including from DIIs and FIIs. There is no confirmed large capital expenditure except a potential INR12 crore land purchase next to the factory for future expansion. For the IVD business, capital requirements are estimated at INR3-4 crores before sales pick up and may increase to INR35-40 crores post-certifications in FY '25 and '26. There is no specific mention of new fundraising through debt. The company is reviewi

Any current/future capex/capital investment/strategic investment?

Cupid Limited plans a capital investment of about INR 12 crores to buy land adjacent to its current factory for future expansion. There is no major capex expected in the next 2-3 years apart from this land purchase. The company is also considering business expansion by increasing production capacity for both male and female condoms. For the IVD (In Vitro Diagnostics) business, the company expects higher working capital requirements around INR 30-40 crores as sales scale up post-certifications in FY 25 and 26. No finalized decisions on new corporate FD investments; current investments include b

Future growth expectations in sales/revenue/volumes?

Female condom sales projected robust at around INR 32 crores in FY '24 despite current challenges. Expect gradual growth in IVD (In Vitro Diagnostics) business, targeting INR 2 crores sales in FY '24, with potential rise to INR 50-100 crores in 2-3 years. International market expansion ongoing, with export reach now in 105 countries, including new additions in Europe and Africa. Anticipated resumption and growth in South African sales starting August 2023, with new tender expected from Brazil worth INR 25-30 crores. Order book currently at INR 104 crores with expectations of additional

Future growth expectations in earnings/operating earnings/profits/EPS?

Cupid Limited expects robust growth in female condom sales, projecting INR32 crores in sales for FY '24 with a 50% profit margin contributing INR16-18 crores profit. Total turnover for FY '24 is expected around INR155 crores with profit after tax estimated at INR32-34 crores. The IVD business is expected to grow significantly post-certifications (WHO and CE) and completion of 3-year manufacturing experience by September 2024; potential turnover INR50-100 crores in 2-3 years. U.S. market entry via female condoms is anticipated after clinical studies and registration, with initial sales ar

Current/ Expected Orderbook/ Pending Orders?

Current confirmed order book as of July 31, 2023: INR 104 crores. Orders to the value of INR 35 crores from South Africa are not yet confirmed and thus not included. INR 14 crores of UNFPA order was cancelled. Sales of INR 33 crores have been dispatched in the quarter. Further orders are expected from UNFPA, Brazil, and South Africa during the year. Brazil tender expected for female condoms could be INR 25-30 crores. South African sales expected to resume in August 2023 and continue till next March. Overall turnover expected for FY '24: approx. INR 155 crores.

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Cupid LtdQ2 FY23Personal Products

Cupid Ltd Q2 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹183P/E: 149.5Market Cap: ₹16.2K CrSector: Personal Products

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Female condom sales projected robust at around INR 32 crores in FY '24 despite current challenges.
→Expect gradual growth in IVD (In Vitro Diagnostics) business, targeting INR 2 crores sales in FY '24, with potential rise to INR 50-100 crores in 2-3 years.
→International market expansion ongoing, with export reach now in 105 countries, including new additions in Europe and Africa.
→Anticipated resumption and growth in South African sales starting August 2023, with new tender expected from Brazil worth INR 25-30 crores.
→Order book currently at INR 104 crores with expectations of additional orders from Brazil, UNFPA, and South Africa.
→Capacity expansion potential, e.g., female condom capacity increase from 25 million to 52 million pieces if demand arises.
→Long-term focus on export markets where demand and margins are higher compared to domestic sales.

Margin guidance

Category 3

→Cupid Limited expects robust growth in female condom sales, projecting INR32 crores in sales for FY '24 with a 50% profit margin contributing INR16-18 crores profit.
→Total turnover for FY '24 is expected around INR155 crores with profit after tax estimated at INR32-34 crores.
→The IVD business is expected to grow significantly post-certifications (WHO and CE) and completion of 3-year manufacturing experience by September 2024; potential turnover INR50-100 crores in 2-3 years.
→U.S. market entry via female condoms is anticipated after clinical studies and registration, with initial sales around $1 million (INR8 crores) and profit of approx. INR4 crores.
→Promoter stake sale is under consideration to possibly support growth and expansion.
→Overall, operating earnings and profits may improve as order books stabilize and new certifications/tenders materialize, especially post-FY '25.

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Fundraise plans

→The company is considering selling promoter stakes, primarily for personal reasons, with no fixed percentage or mode (IPO or preference shares) decided yet. They are open to offers including from DIIs and FIIs.
→There is no confirmed large capital expenditure except a potential INR12 crore land purchase next to the factory for future expansion.
→For the IVD business, capital requirements are estimated at INR3-4 crores before sales pick up and may increase to INR35-40 crores post-certifications in FY '25 and '26.
→There is no specific mention of new fundraising through debt.
→The company is reviewing all options including utilization of reserves, dividend payments, and business expansion investments.

Order book

→Current confirmed order book as of July 31, 2023: INR 104 crores.
→Orders to the value of INR 35 crores from South Africa are not yet confirmed and thus not included.
→INR 14 crores of UNFPA order was cancelled.
→Sales of INR 33 crores have been dispatched in the quarter.
→Further orders are expected from UNFPA, Brazil, and South Africa during the year.
→Brazil tender expected for female condoms could be INR 25-30 crores.
→South African sales expected to resume in August 2023 and continue till next March.
→Overall turnover expected for FY '24: approx. INR 155 crores.

Capex plans

Yes

→Cupid Limited plans a capital investment of about INR 12 crores to buy land adjacent to its current factory for future expansion.
→There is no major capex expected in the next 2-3 years apart from this land purchase.
→The company is also considering business expansion by increasing production capacity for both male and female condoms.
→For the IVD (In Vitro Diagnostics) business, the company expects higher working capital requirements around INR 30-40 crores as sales scale up post-certifications in FY 25 and 26.
→No finalized decisions on new corporate FD investments; current investments include bank FDs and mutual funds.
→Promoters are considering selling their stake mainly for personal reasons but remain open regarding the quantity and mode of sale.

How does Cupid Ltd rank vs peers in Personal Products?

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1Cupid Ltd

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