Dear Shareholders,
I extend my warmest greetings as I seize this opportunity to present to
you the key highlights of our fiscal 2023 financial performance. Achieving one of the most
significant revenue milestones in our company's history is an exceptional accomplishment.
This past year has been truly rewarding, and I attribute our success to the combined
efforts and expertise of our outstanding team. Their unwavering commitment has enabled us
to make a positive impact on the sexual health landscape and empower individuals to lead a
healthier life.
The strong demand for our products in the international market is a
clear testament to the growing trust and recognition of our brand worldwide. It is an
outstanding achievement to have an order book standing at an impressive f177 crore as of
April 1st, 2023. This not only reflects the demand of our products but also signifies the
confidence that customers have in our company.
Furthermore, the prospect of receiving additional orders from key
markets such as Tanzania and Brazil presents an exciting opportunity for further growth
and expansion. These markets hold significant potential, and our success in capturing
their interest speaks volumes about the quality, delivery and appeal of our products.
As we continue to meet the demands of the international market and
expand our customer base, it is essential to uphold the high standards that have led to
our success thus far. By nurturing customer relationships, delivering exceptional products
and services, and staying ahead of market trends, we can build upon it's milestone and
achieve even greater success in the future.
Now, let me present the key highlights of our financial results for
FY23. Cupid reports its second- highest total sales revenue ever, amounting to f 164.10
crore, and the second-best profit after tax of Rs31.58 crore for the fiscal year
2022-2023. This fiscal year stands out as one of the best in our 30- year history. Our
revenues have grown by approximately 19.75%, while profit after tax has seen a remarkable
82.75% increase as compared to a year ago period results. EBITDA has risen by 79.68% to
Rs41.31 crore, and our EBITDA margin has surged by 861 basis points to 25.93%. These
improvements in profit margins are attributed to steady input costs and enhanced
productivity. Our ability to generate revenue, improve operational efficiency, and drive
profitability has positioned us as a global leader in the industry.
Export revenue accounts for 94% of our total revenue, compared to 85%
in the previous year. In terms of product mix, male condoms contributed 75% compared to
63% in the previous year, while female condoms accounted for 16% compared to 14%, and
lubricant jelly contributed 9% compared to 20%.
During the second half of Fiscal 2023, we successfully launched our
commercial operations for the IVD division after obtaining IS013485 license and other
various regulatory approvals. We will apply for the CE license, a prerequisite for sales
in the European market, and subsequently pursue WHO GMP certification in the next
financial year. We have already received manufacturing license for 14 different IVD
products.
We are focused on securing Central and State government tenders, as
well as contract manufacturing facilities for both domestic and international players. We
anticipate a substantial contribution from this new division in the coming years.
In terms of expanding our market presence, we are currently in the
process of obtaining USFDA status for our female condoms. We remain optimistic about
receiving all the necessary permissions and commencing commercial activities in the US
during Fiscal 2025. The US market holds great potential for us and will significantly
contribute to our overall performance.
Expanding into South America presents a promising opportunity for Cupid
Limited. The region offers a large population and diverse markets, providing a potential
customer base for our products. With our well-established manufacturing capabilities and
product portfolio, we are strategically positioned to enter this market successfully.
The global condom market is projected to experience steady growth,
fuelled by increasing awareness of safe sex practices, measures to reduce the spread of
STIs, and government initiatives promoting condom usage. Cupid Limited is poised to
capitalize on this growth, expand our market presence, and contribute to the overall
well-being of individuals worldwide.
I would like to express my deepest gratitude to our dedicated
employees, esteemed customers and shareholders for their unwavering support and steadfast
commitment to our shared vision. I wholeheartedly appreciate and take pride in the
incredible dedication and hard work each of you has contributed to our organization.
As we progress forward, our commitment to improving sexual health and
empowering individuals to lead healthier lives remains resolute. Together, we will
continue to innovate, advocate, and drive positive change within our industry. The
collective efforts and unwavering dedication of our team have laid a solid foundation for
a brighter future and I am honoured to be on this journey with all of you.
Best Regards,
Mr. Omprakash Garg
Chairman & Managing Director
Cupid Limited