CUPID 2023-24 Annual Report Analysis

Mon, 14 Oct

CUPID has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

CUPID Income Statement Analysis

• Operating income during the year rose 7.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.3% in FY24 as against 26.0% in FY23.
• Depreciation charges decreased by 1.5% and finance costs increased by 129.7% YoY, respectively.
• Other income grew by 51.3% YoY.
• Net profit for the year grew by 26.2% YoY.
• Net profit margins during the year grew from 19.8% in FY23 to 23.3% in FY24.

CUPID Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,591	1,709	7.4%
Other income	Rs m	48	72	51.3%
Total Revenues	Rs m	1,639	1,781	8.7%
Gross profit	Rs m	413	501	21.3%
Depreciation	Rs m	30	29	-1.5%
Interest	Rs m	8	18	129.7%
Profit before tax	Rs m	423	526	24.3%
Tax	Rs m	107	127	18.5%
Profit after tax	Rs m	316	399	26.2%
Gross profit margin	%	26.0	29.3
Effective tax rate	%	25.4	24.2
Net profit margin	%	19.8	23.3

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CUPID Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 170 million as compared to Rs 202 million in FY23, thereby witnessing an decrease of -15.6%.
• Current assets rose 71% and stood at Rs 3 billion, while fixed assets rose 61% and stood at Rs 581 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 69%.

CUPID Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,663	2,042	22.8
Current Liabilities	Rs m	202	170	-15.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,888	3,199	69.4
Current assets	Rs m	1,528	2,618	71.4
Fixed Assets	Rs m	361	581	61.2
Total Assets	Rs m	1,888	3,199	69.4

CUPID Cash Flow Statement Analysis

• CUPID's cash flow from operating activities (CFO) during FY24 stood at Rs 78 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -798 million, an improvement of 265.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 988 million, an improvement of 1,002% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 268 million from the Rs -1 million net cash flows seen during FY23.

CUPID Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	327	78	-76.0%
Cash Flow from Investing Activities	Rs m	-219	-798	-
Cash Flow from Financing Activities	Rs m	-109	988	-
Net Cash Flow	Rs m	-1	268	-

Current Valuations for CUPID

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.0, an decline from the EPS of Rs 23.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 79.5, stands at 23.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 6.2 times.
• The company's price to cash flow (P/CF) ratio stood at 24.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	119.3	12.7
TTM Earnings per share	Rs	23.7	3.0
Diluted earnings per share	Rs	2.4	3.0
Price to Cash Flow	x	0.5	24.1
TTM P/E ratio	x	0.5	23.2
Price / Book Value ratio	x	2.2	5.0
Market Cap	Rs m	3,686	10,309
Dividends per share (Unadj.)	Rs	0.5	0.0

Ratio Analysis for CUPID

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 15.4x during FY24, from 7.6x during FY23. 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 30.1x during FY24, from 54.7x during FY23. 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 19.5% during FY24, from 19.0% during FY24. 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 26.6% during FY24, from 25.9% during FY23. 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 13.0% during FY24, from 17.1% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	7.6	15.4
Debtors’ Days	Days	588	1,025
Interest coverage	x	54.7	30.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.1	13.0
Return on equity	%	19.0	19.5
Return on capital employed	%	25.9	26.6

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 23.4 to Rs 79.5, registering a gain of Rs 56.1 or around 240.2%.

Overall, the S&P BSE SENSEX is up 24.1% over the year.

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