cupid ltd share price Management discussions

Economy Outlook

The global economy is indeed facing a challenging and uncertain outlook due to several factors. The lingering effects of the COVID-19 pandemic and Russias invasion of Ukraine have had significant repercussions on economic stability worldwide. As per IMF, the baseline forecast is for growth to fall from 3.4 percent in 2022 to 2.8 percent in 2023, before settling at 3.0 percent in 2024. Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7 percent in 2022 to 1.3 percent in 2023. In a plausible alternative scenario with further financial sector stress, global growth declines to about 2.5 percent in 2023 with advanced economy growth falling below 1 percent.

According to the International Monetary Fund (IMF), India is projected to be the fastest-growing economy in the world. The IMFs World Economic Outlook report predicts Indias economy to grow by 5.9% in the current fiscal year, making it a beacon of resilience in the global economy. The report also highlights Indias efforts in leveraging digitalization to overcome the pandemics challenges and create new opportunities for growth and employment. The IMF Managing Director has praised Indias balance between development needs and fiscal responsibility in its recent budget, emphasizing the countrys unwavering strength and commitment to progress.

Indias growth projection remains strong, with the country expected to contribute significantly to global growth in 2023. The IMF report also suggests that Indias inflation is expected to ease to 4.9% in the current year, further demonstrating Indias economic resilience and ability to overcome obstacles.

Industry Demand Scenario

Now, turning to the industry demand scenario, the global prevalence of over population, HIV and its devastating consequences underscore the importance of condom usage. Condoms not only reduce the risk of sexually transmitted infections (STIs) such as chlamydia, gonorrhea, trichomoniasis, HIV/AIDS, and hepatitis B but also provide some protection against syphilis, human papillomavirus (HPV), and genital herpes. Rising awareness through government initiatives, along with comprehensive sex education programs, aims to mitigate the spread of HIV and other STIs, which in turn is expected to bolster the demand for condoms.

Numerous governments worldwide have launched extensive campaigns and implemented sex education programs to enhance awareness among young individuals and promote the usage of contraceptives to combat sexually transmitted diseases (STDs) and prevent unwanted pregnancies. Prominent international and government healthcare bodies such as the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC) play a significant role in raising awareness about safe sex practices involving condoms. According to a report by Grand View Research, the global condom market was valued at USD 9.9 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 8.52% from 2022 to 2030. Factors driving this growth include the free distribution of condoms by government organizations to prevent the spread of HIV and unintended pregnancies, as well as increased international donor funding.

The condom market is segmented into male and female condoms. The male condom segment currently dominates the market, accounting for 98.75% of revenue in 2022. This segments growth can be attributed to various factors, including manufacturers focus on male condom production, greater societal acceptance compared to female condoms, and a diverse product portfolio. However, the female condom segment is expected to witness the fastest growth, with a compound annual growth rate (CAGR) of 12.69% during the forecast period. Female condoms are increasingly recognized for their effectiveness in reducing the risk of STIs and unplanned pregnancies. The World Health Organization (WHO) has established stringent prequalification procedures for female condoms, and only a few companies have met these requirements, leaving significant market opportunities for new entrants. Additionally, the shift in consumer preference toward e-commerce channels following the pandemic has resulted in increased demand for female condoms.

Key drivers contributing to the growth of the condom industry include rising awareness regarding condom usage, the availability of diverse condom types to cater to consumer preferences, measures aimed at reducing the spread of HIV and other STIs and the free distribution of condoms by government organizations.

Company Review

CUPID Limited, established in 1993, holds the distinction of being Indias leading manufacturer of male and female condoms, water-based lubricant jelly, and IVD (In-vitro diagnostics) kits. With a strong international and domestic presence, CUPID became the first company globally to obtain WHO/UNFPA pre-qualification for both male and female condoms. The company employs over 100 staff members and boasts more than two decades of industry experience. It currently supplies its products to over 104 countries and derives over 90% of its revenues from international markets. CUPID has a long-term agreement with WHO/UNFPA and maintains a steadfast commitment to research and development, continuously innovating and expanding its product portfolio to stay ahead of competition and meet evolving customer demands.

CUPID operates in both the business-to-business (B2B) and business-to-consumer (B2C) segments. In the B2B segment, the company primarily caters to governments and institutional buyers worldwide, focusing on the prevention of AIDS, STIs, STDs, and unintended pregnancies. Additionally, CUPID engages in contract manufacturing, producing products under other customers brands.

Furthermore, CUPID is actively preparing its In-vitro diagnostics (IVD) division and pursuing various regulatory approvals. The company aims to target both central and state government tenders and establish contract manufacturing facilities for domestic and international players. Regarding the USFDA status for Female Condoms, CUPID is preparing for the re-submission of 510K application to the USFDA. The company anticipates receiving the necessary permissions and commencing commercial activities in the US in Fiscal 2025.

Financial Review

In the fiscal year 2022-23, CUPID achieved its second-highest revenue since its inception, reporting a total revenue of 164.10 crore and the second-best profit after tax of 31.58 crore. These figures reflect a total revenue growth of approximately 19.75% and a robust 82.75% increase in profit after tax. The companys operating performance improved, with an EBITDA margin of 25.93% and an EBITDA of 41.31 crore, representing a significant surge of 79.68%. Enhanced profit margins were driven by stable input costs and improved productivity. CUPIDs consistent ability to generate revenue, improve operational efficiency, and improved profitability has solidified its position as a global industry leader.

Export sales accounted for 94% of CUPIDs revenue in the fiscal year, up from 85% in the previous year. The product mix indicates that male condoms contributed 75% of revenue in comparison to 63% in the previous year, while female condoms accounted for 16% (compared to 14%) and lubricant jelly contributed 9% (compared to 20%). The companys order book stands at 177 crore as of April 1st, 2023.

Our sales breakdown shows that 94% of our revenue comes from exports, while the remaining 6% is generated from the domestic market. This emphasizes our strong presence and success in international markets, positioning us as a trusted supplier globally in the condom industry.

Our product-wise sales breakdown reflects a strong demand for male condoms, representing 75% of our revenue. Female condoms contribute 16%, while lubricant jelly accounts for 9%. With this diversified product portfolio, we cater to a wide range of customer preferences, establishing ourselves as a comprehensive provider of sexual health products.


The outlook for the demand of both male and female condoms remains positive. This is primarily attributed to the increasing awareness among individuals regarding the effectiveness of condoms in preventing sexually transmitted infections (STIs), including HIV, as well as unintended pregnancies. Additionally, the affordability and absence of significant side effects further contribute to the demand for condoms.

The company, foresees several repeat orders in the upcoming year from notable customers such as UNFPA, Tanzania, South Africa, and private sector customers from various countries worldwide. This indicates a favourable market reception for CUPIDs products. The company expects improved top and bottom-line performance during FY24, driven by stable input costs and a robust order book.

The process of registration of our IVD products with the authorities of various countries is in progress. Further, required applications have been filed for obtaining WHO certifications and CE Mark.

Risks and Concerns

There are many risks and concerns in the condom manufacturing industry. These include heightened competition, fluctuating raw material prices, regulatory compliance, and geopolitical uncertainties. To address these risks, we prioritize innovation, effective supply chain management, regulatory compliance, and vigilant monitoring of global developments.