Condom maker Cupid sees revenue growing at 20% in FY17

Condom manufacturer and supplier Cupid Limited got listed on the NSE today and the management is upbeat on the company's business and expects FY17 to be better than FY16.

In an interview with CNBC-TV18, Om Garg, CMD of Cupid said that he expects a 20 percent revenue growth for FY17 and aims to sustain its margins at around 40 percent.

He further said that the company is running at full capacity and has launched a new product which is a water-based lubricant jelly.Below is the verbatim transcript of Om Garg’s interview to Nigel D'Souza on CNBC-TV18. Q: What is the outlook looking like for this year? Remember last year you had a great year; you did a 35-40 percent growth on the topline. FY17 how is it looking? A: It is looking as per our projection quite good. Q: What kind of numbers can we do, last year we did around Rs 63 crore on the topline? You have received various new orders as well earlier this year, so for FY17 what could those numbers look like, Rs 63 crore is what you did last year? This year are we looking at bigger number? A: We are looking about 20 percent increase as we had projected. Q: Rs 75 crore at least is what we are likely to do? A: Approximately there. Q: What about margins, I think in the last year you had done around 43 percent do you enjoy better margins on sale of female condoms or how does that workout for you because last year it increased to around 43 percent previous year it was only around 30 percent? A: Ratios would be the same between male and female condoms and our target is to achieve at least the same margins. Q: 43 percent is what we could see? A: Approximately there. Q: What is the proportion of the female condoms to male condoms? A: It would be about 50-50. Q: Capacity utilisations currently are you at optimum capacity utilisations or are you coming out with any further products as well any innovation over there? A: First of all yes we are running at full capacity both for female condoms and male condoms. We are adding a water based lubricant jelly, a new product which would be the third product in Cupid’s basket. We have started sales of lubricant jelly already. Q: What can it contribute this new product that you have launched? What can it contribute to your topline and are margins better over there because realisations would be higher? A: Margins are better, but it is too early to make a projection. We have to wait for at least one more quarter before we can make a reasonable forecast. Q: What is your order book, do you have one year order book at least with you in hand, Rs 70-80 crore is that your order book currently? A: We do have one year orders on hand.