CUPIDNSEQ2FY2023November 15, 2022

Cupid Limited

4,193words
67turns
6analyst exchanges
2executives
Management on call
Omprakash Garg
CHAIRMAN AND
Durgesh Garg
CHIEF OPERATING OFFICER – CUPID LIMITED
Key numbers — 40 extracted
rs,
is on our website and the stock exchange. To discuss the results and address the queries of investors, we have with us Mr. Om Garg, Chairman and Managing Director of the company. Along with him, we have
38%
report that we had a very good second quarter and our topline, the revenue had increased by about 38% as compared to the second quarter a year ago. And the net profit has also shown tremendous improve
84%
o the second quarter a year ago. And the net profit has also shown tremendous improvement, it's up 84% as compared to the similar second quarter last year. Also, the EBITDA margin has improved to 26%
26%
84% as compared to the similar second quarter last year. Also, the EBITDA margin has improved to 26% during this quarter as compared to a 16% EBITDA margin in the quarter a year ago. As a result of i
16%
arter last year. Also, the EBITDA margin has improved to 26% during this quarter as compared to a 16% EBITDA margin in the quarter a year ago. As a result of increased profitability, the Board of Dir
INR 2
f increased profitability, the Board of Directors has recommended and approved interim dividend of INR 2 per share or 20% which is double the amount of INR 1 per share, which was declared a year ago. In
20%
bility, the Board of Directors has recommended and approved interim dividend of INR 2 per share or 20% which is double the amount of INR 1 per share, which was declared a year ago. In terms of the bus
INR 1
recommended and approved interim dividend of INR 2 per share or 20% which is double the amount of INR 1 per share, which was declared a year ago. In terms of the business, there is a stronger demand for
INR 169 crore
k and through the global funds. Also in terms of the order book going forward, we have order worth INR 169 crores as on October 2022, and we are expecting more repeat orders in the coming months. Now some of th
97%
he coming months. Now some of the other highlights are, number one, we have attained our target of 97% of our sales in exports. Our target has been 95% of sales should be in export and as you are aware
95%
s are, number one, we have attained our target of 97% of our sales in exports. Our target has been 95% of sales should be in export and as you are aware, the margins are much better in the export sales
3%
e domestic sales. And in addition, we get an export incentive from the Government of India between 3% and 4% additional revenue for us. The other highlight is that we have been successful in obtainin
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Guidance — 20 items
Omprakash Garg
opening
“Also in terms of the order book going forward, we have order worth INR 169 crores as on October 2022, and we are expecting more repeat orders in the coming months.”
Omprakash Garg
opening
“Now some of the other highlights are, number one, we have attained our target of 97% of our sales in exports.”
Omprakash Garg
opening
“Our target has been 95% of sales should be in export and as you are aware, the margins are much better in the export sales as compared to the domestic sales.”
Omprakash Garg
opening
“The third important observation is that the trend in the input cost and the logistic costs has been stabilized during the quarter and this should help in improving our profitability going forward during the year.”
Omprakash Garg
opening
“We expect that the demand and the dispatches and sales will continue to improve based on the existing strong order book, as well as on the expected new orders and we are paying full attention in terms of how to grow the company both in terms of the topline as well as in terms of the profitability.”
Omprakash Garg
opening
“So, we plan to at least meet this standard in the next two quarters, so that we are looking at for full year FY '23 at least 150 crore in the topline and about INR 25 crores or INR 26 crores net profit in the year.”
Omprakash Garg
qa
“And so we are exited to benefit from these stable and lowering input cost going forward.”
Pushkar Jain
qa
“And on the sustainable EBITDA margin going forward for the last 3, 4 quarters, our margin has been in the range of 20% to 25%.”
Omprakash Garg
qa
“Yes, we expect the EBITDA margin to continue at least at 26%.”
Omprakash Garg
qa
“So depending on the sales of these 2 products, we expect to continue a higher EBITDA margin in the next 2 quarters as well.”
Risks & concerns — 1 flagged
And we have not fully included the impact of female condom sales in US will have plus increased sales in IVD.
— Omprakash Garg
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Q&A — 6 exchanges
Q
Congrats on the quarter. My question was regarding the input cost. So how much percentage of input cost collection we have seen in Q2? And also, can you quantify the benefit that we have derived because of rupee depreciation?
Omprakash Garg
Sorry, could you please repeat your question?
Q
Yes. First of all, congrats on the good set of numbers. Can you quantify by how many percentage the raw material prices have corrected at least the main raw materials? And how much benefit we have derived because of rupee depreciation that is in sales, what is the benefit that we got in this quarter because of rupee depreciation?
Omprakash Garg
Well, we got about 7% to 8% improvement in terms of the lower input costs and in the logistics costs. Worldwide trends seem to have stabilized. And in one particular commodity, for example, the silicone oil, we have noted a reduction of over 20% in our input costs. And so we are exited to benefit from these stable and lowering input cost going forward. And apart from that, how much again -- did we gain because of rupee depreciation in our sales? Can you quantify the gain that we got because of rupee depreciation? As all our sales are in dollars, what is the amount of gain that you got because
Q
Actually, thank you all for opportunity. In the last call, we have mentioned that we had a visit from a pharma company for IVD because in the month of July and in August. Any such thing that has happened or any development in this model let us test you want to move?
Omprakash Garg
And sorry, could you please repeat your question? Yes, actually, in the last con call, you have mentioned that from Singapore-based pharma company is about to visit our facility regarding the IVD devices. Any such thing happened or any other developments that happen? Yes. The Singapore party representative, they visited our facilities in Nashik and they like these facilities very much. And they have indicated their interest to continue the collaboration. We are in the process of drafting an agreement. And we are quite hopeful that in the next 3 months, we should have some positive results from
Q
You mentioned in your press release, the order book is INR 169 crores. Can you also provide a breakup of that within the three segments, the male, female and the IVD segment?
Omprakash Garg
Yes. It's about 61% is for male condom, 36% is for female condom and the balance 3% is from lubricants. That will bring in INR 169 crores worth of order book. And nothing so far for the IVD segment, right? For IVD, we don't have any confirmed orders as yet with us, like I mentioned earlier, we are still in the process of establishing our distributors and our export customers. So it will take us I would say, until end of December to start to get some confirmed orders for IVD products. And sir, we were expecting large orders for our female segment, I think, from Brazil. So any update on that? Ye
Q
Yes. My question was regarding IVD sales. You mentioned around INR 150 crores to INR 200 crores sales in next three years to four years. But right now, you have no visibility seeing zero sales. So what gives you the visibility to achieve INR 150 crores to INR 200 crores of sales? There must be some plan to achieve this.
Omprakash Garg
Yes. The major expectation is that there are large vendors for five products, including dengue, malaria, HIV, syphilis and COVID and some of these tenders are in millions of dollars. So the demand is huge and of course, there is a competition. And our prices are quite competitive. So once we start to get actively involved in submitting our bids for some of these tenders, we project that we could achieve its target of INR 150 crores to INR 200 crores sales in next two years to three years, maybe even more. But right now, any people or like the companies which you intend to supply to are keeping
Q
Hello, everyone again. We would like to thank all the shareholders who have decided to participate in this earnings conference call and have given their valuable time, have made valuable comments and contributions. Because some of you have been with Cupid over 20 years, we have always valued your suggestions and your commitments and your interest and your confidence in the management of the company through thick and thin years. So we would also like to thank all of our vendors and most of all, our customers who have been with us, many of them for over 15 years, we have been getting the repeat
Management
Speaking time
Omprakash Garg
30
Moderator
8
Jyoti Basu
8
Pushkar Jain
7
Onkar G
7
Yogansh Jeswani
6
Binay Sarda
1
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Opening remarks
Binay Sarda
Thank you and thanks for joining the Q2 FY '23 earnings call for Cupid Limited. We have mailed the results and press release to you. I hope you have received the same and we have also uploaded this on our website and the stock exchange. To discuss the results and address the queries of investors, we have with us Mr. Om Garg, Chairman and Managing Director of the company. Along with him, we have Mr. Durgesh Garg, Chief Operating Officer. Mr. Garg, will give a brief overview of the quarter 1 part and then we'll open the floor over to Q&A session. I would like to remind you that everything said on this call that reflects any outlook for the future or which can be construed as a forward-looking statement must be viewed in conjunction with the uncertainties and the risks that we face. These uncertainties and risks are included, but not limited to what we have mentioned in the prospectus filed with SEBI and subsequent annual reports, which you can find on the website. With that said, let me
Omprakash Garg
Thank you, Binay. Good afternoon, ladies and gentlemen. On the half of Cupid Limited, I would like to welcome you all to the second quarter FY '23 earnings conference call for Cupid Limited today. And we have already forwarded the Board meeting minutes and the results last night to all of you. So we hope you had a chance to look at it. Let me briefly describe some of the salient features from the results. To start with, I'm very pleased to report that we had a very good second quarter and our topline, the revenue had increased by about 38% as compared to the second quarter a year ago. And the net profit has also shown tremendous improvement, it's up 84% as compared to the similar second quarter last year. Also, the EBITDA margin has improved to 26% during this quarter as compared to a 16% EBITDA margin in the quarter a year ago. As a result of increased profitability, the Board of Directors has recommended and approved interim dividend of INR 2 per share or 20% which is double the amou
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