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- Jesus answered, "The scripture says 'Man shall not live by bread alone, but by every word that proceeds from the mouth of God'."

16 Feb 2020


Chairman's Message
Dear Shareholders,
I would like to take this opportunity to thank you for your continuous support and for reposing your faith in the Company. It gives me immense pleasure to take you through the key developments and financial performance for the fiscal year 2019.
On the financial front, we ended the year with a Total Operating Income of ₹ 854.7 million (mn) for FY19 as compared to ₹ 806.0 mn in the corresponding period of the previous year reflecting an increase of 6.0 %. EBITDA stood at ₹230.4 mn as compared to ₹283.3 mn during the corresponding period of previous year resulting in decline in margin by 27.0%. Net profit was thereby impacted, and we closed the year with a net profit of ₹152.1 mn for FY19 as compared to ₹170.9 mn in the corresponding period of the previous year which is a decrease of 11.0 %.
Let me highlight the reason for the tepid growth in revenue and decline in the margins and profitability. The revenue of the Company was impacted due to continuing slowdown in Female Condom orders from South Africa. Business development expenses and lower proportion of higher margin Female Condoms in the total revenue impacted the margins and profitability. However, we expect improvement in the top line and bottom line in the coming fiscal year on the back of improved demand scenario.
This year has been a landmark year for us in many ways. Your company celebrated its Silver Jubilee, having completed 25 years and announced Bonus Share offer, 1 share for 5 shares to all its shareholders at the AGM. We added yet another feather in our cap by getting Female Condom registration with Government of Brazil which has put us in favourable position to win sizable order for Female Condoms from the region. During the year, we successfully executed our first shipment of Female Condoms to Brazil. It is heartening to mention that UNFPA has renewed Cupid’s Pre-Qualification status for its Female Condom Version 1 & 2 and Male Condom for a period of 3 years.  Also, we are immensely satisfied to have successfully completed our three years contract of Female Condom worth Rs. 104 Cr to supply to the South African Government and are hopeful to win many more contracts in the future.
We are delighted to inform that “Cupid Angel” Trademark has been finally registered with the United States Patent and Trademark Office which would help us to promote and market our Cupid Female Condoms in USA. We continue to diversify across new geographies and exported to Central American countries like Guatemala, Honduras besides Dominican Republic and Haiti through United Nation Population Fund (UNFPA) for the first time and are continuously on the lookout for newer target markets.
During the year, we launched Cupid range of Male and Female Condoms, Hand Sanitizers and Water Based Lubricant Jelly and started to export the products. We are pleased to announce the completion of capacity expansion from 400 to 560 million pieces of Male Condoms per year which would permit us to participate in large sized tenders from Brazil, South Africa, Zambia and India. Cupid shall continue to explore possibility of enhancing business prospects in South Africa and other Sub Saharan continents.
The outlook for FY20 looks promising. We expect to see increase in demand for condoms on the back of more international donor funding, higher consumption in lower- and middle-income countries and more funding from National Governments for the prevention of spread of STIs including HIV and unintended pregnancies.
As I close, I would like to thank all our customers, shareholders and employees once again for supporting us during this journey.
Mr. Omprakash Garg
Managing Director, Chairman

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