CUPID 2021-22 Annual Report Analysis

Mon, 12 Sep

CUPID has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

CUPID Income Statement Analysis

• Operating income during the year fell 7.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 36.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.4% in FY22 as against 25.1% in FY21.
• Depreciation charges increased by 1.8% and finance costs decreased by 68.5% YoY, respectively.
• Other income declined by 16.4% YoY.
• Net profit for the year declined by 40.4% YoY.
• Net profit margins during the year declined from 20.2% in FY21 to 13.1% in FY22.

CUPID Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,435	1,323	-7.8%
Other income	Rs m	52	43	-16.4%
Total Revenues	Rs m	1,487	1,367	-8.1%
Gross profit	Rs m	361	230	-36.3%
Depreciation	Rs m	26	26	1.8%
Interest	Rs m	4	1	-68.5%
Profit before tax	Rs m	382	245	-35.8%
Tax	Rs m	92	72	-21.4%
Profit after tax	Rs m	290	173	-40.4%
Gross profit margin	%	25.1	17.4
Effective tax rate	%	24.1	29.5
Net profit margin	%	20.2	13.1

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CUPID Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 309 million as compared to Rs 207 million in FY21, thereby witnessing an increase of 49.2%.
• Current assets rose 13% and stood at Rs 1 billion, while fixed assets rose 20% and stood at Rs 365 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 2 billion as against Rs 2 billion during FY21, thereby witnessing a growth of 14%.

CUPID Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,309	1,422	8.7
Current Liabilities	Rs m	207	309	49.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,524	1,741	14.2
Current assets	Rs m	1,218	1,376	12.9
Fixed Assets	Rs m	305	365	19.6
Total Assets	Rs m	1,524	1,741	14.2

CUPID Cash Flow Statement Analysis

• CUPID's cash flow from operating activities (CFO) during FY22 stood at Rs 102 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -135 million, an improvement of 53.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 27 million, an improvement of 108% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -6 million from the Rs 0 million net cash flows seen during FY21.

CUPID Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	419	102	-75.6%
Cash Flow from Investing Activities	Rs m	-88	-135	-
Cash Flow from Financing Activities	Rs m	-330	27	-
Net Cash Flow	Rs m	0	-6	-

Current Valuations for CUPID

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.0, an decline from the EPS of Rs 21.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 235.9, stands at 19.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 15.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	107.6	99.2
TTM Earnings per share	Rs	21.7	13.0
Diluted earnings per share	Rs	21.7	13.0
Price to Cash Flow	x	8.9	15.5
TTM P/E ratio	x	9.7	19.7
Price / Book Value ratio	x	2.2	2.2
Market Cap	Rs m	2,870	3,095
Dividends per share (Unadj.)	Rs	4.5	4.5

Ratio Analysis for CUPID

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.5x during FY22, from 5.9x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 182.6x during FY22, from 90.3x during FY21. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 12.2% during FY22, from 22.2% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 17.3% during FY22, from 29.5% during FY21. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 10.0% during FY22, from 19.3% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	5.9	4.5
Debtors’ Days	Days	648	840
Interest coverage	x	90.3	182.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.3	10.0
Return on equity	%	22.2	12.2
Return on capital employed	%	29.5	17.3

To see how CUPID has performed over the last 5 years, please visit here.

CUPID Share Price Performance

Over the last one year, CUPID share price has moved up from Rs 229.5 to Rs 235.9, registering a gain of Rs 6.4 or around 2.8%.

Overall, the S&P BSE SENSEX is up 3.4% over the year.

(To know more, check out historical annual results for CUPID and quarterly results for CUPID)

Read: Latest Annual Report Analysis of CUPID