CUPID 2022-23 Annual Report Analysis

Wed, 13 Sep

CUPID has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

CUPID Income Statement Analysis

• Operating income during the year rose 20.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 79.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.0% in FY23 as against 17.4% in FY22.
• Depreciation charges increased by 12.2% and finance costs increased by 483.7% YoY, respectively.
• Other income grew by 10.6% YoY.
• Net profit for the year grew by 82.8% YoY.
• Net profit margins during the year grew from 13.1% in FY22 to 19.8% in FY23.

CUPID Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,323	1,591	20.2%
Other income	Rs m	43	48	10.6%
Total Revenues	Rs m	1,367	1,639	19.9%
Gross profit	Rs m	230	413	79.7%
Depreciation	Rs m	26	30	12.2%
Interest	Rs m	1	8	483.7%
Profit before tax	Rs m	245	423	72.6%
Tax	Rs m	72	107	48.2%
Profit after tax	Rs m	173	316	82.8%
Gross profit margin	%	17.4	26.0
Effective tax rate	%	29.5	25.4
Net profit margin	%	13.1	19.8

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CUPID Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 202 million as compared to Rs 309 million in FY22, thereby witnessing an decrease of -34.7%.
• Current assets rose 11% and stood at Rs 2 billion, while fixed assets fell 1% and stood at Rs 361 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 8%.

CUPID Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,422	1,663	17.0
Current Liabilities	Rs m	309	202	-34.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,741	1,888	8.5
Current assets	Rs m	1,376	1,528	11.1
Fixed Assets	Rs m	365	361	-1.3
Total Assets	Rs m	1,741	1,888	8.5

CUPID Cash Flow Statement Analysis

• CUPID's cash flow from operating activities (CFO) during FY23 stood at Rs 327 million, an improvement of 219.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -219 million, an improvement of 62.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -109 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 million from the Rs -6 million net cash flows seen during FY22.

CUPID Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	102	327	219.5%
Cash Flow from Investing Activities	Rs m	-135	-219	-
Cash Flow from Financing Activities	Rs m	27	-109	-
Net Cash Flow	Rs m	-6	-1	-

Current Valuations for CUPID

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.7, an improvement from the EPS of Rs 13.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 417.9, stands at 19.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 10.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	99.2	119.3
TTM Earnings per share	Rs	13.0	23.7
Diluted earnings per share	Rs	13.0	23.7
Price to Cash Flow	x	15.9	10.7
TTM P/E ratio	x	18.3	19.1
Price / Book Value ratio	x	2.2	2.2
Market Cap	Rs m	3,095	3,686
Dividends per share (Unadj.)	Rs	4.5	5.0

Ratio Analysis for CUPID

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.6x during FY23, from 4.5x during FY22. 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 deteriorated and stood at 54.7x during FY23, from 182.6x during FY22. 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 improved and stood at 19.0% during FY23, from 12.2% during FY23. 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 improved and stood at 25.9% during FY23, from 17.3% during FY22. 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 improved and stood at 17.1% during FY23, from 10.0% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	4.5	7.6
Debtors’ Days	Days	840	588
Interest coverage	x	182.6	54.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.0	17.1
Return on equity	%	12.2	19.0
Return on capital employed	%	17.3	25.9

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 228.6 to Rs 417.9, registering a gain of Rs 189.3 or around 82.8%.

Overall, the S&P BSE SENSEX is up 12.0% over the year.

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