Any current/future new fundraising through debt or equity?

Rajiv Kaul mentioned that the company is working on inorganic opportunities, including potential M&A deals, but did not provide any specific timelines or certainty about closures. No explicit mention was made about any current or planned fundraising through debt or equity in the provided text. The company focuses on deploying capital efficiently, generating high returns on capital, and reinvesting earnings into growth and new businesses. ESOP costs will gradually reduce over time, indicating no immediate large equity dilution planned. Overall, no direct guidance or announcement related to new

Any current/future capex/capital investment/strategic investment?

FY24 CAPEX was Rs. 99 crore, down from prior years due to project delays and deferred order placements. FY25 CAPEX expected to be higher to compensate for under-spend in FY24, targeting around Rs. 200 crore annually on average. Capital deployment mainly linked to order book; about two-thirds of the order book requires capital investment. CMS focuses on high-return capital deployment, cautious about transaction-linked BLA ATM business due to lower returns. Strategic investments include incubating new businesses in specialized logistics and collection services, with incremental operating costs o

Future growth expectations in sales/revenue/volumes?

CMS Info Systems aims to achieve 2x revenue growth from FY21 to FY25, targeting Rs. 2,500 to Rs. 2,700 crores in revenue. The company expects Retail Cash solutions to grow substantially higher than other segments over the next three years. Their AIoT remote monitoring business is poised to double in scale over the next three years. Integrated Managed Services solutions, including software and fixed price contracts, are building out strongly. Cash Logistics business projected to grow at a midterm CAGR of 10%-13%. Managed Services to grow faster than cash business; overall strong growth across b

Future growth expectations in earnings/operating earnings/profits/EPS?

CMS Info Systems targets a revenue of Rs. 2,500 - 2,700 crores in FY25, aiming to maintain upper-end confidence. PAT growth has been consistently above 20% YoY for five consecutive years, with a 23% growth in the latest year despite incremental investments. Operating margins have improved from 17-18% (pre-COVID) to over 25% currently, expected to remain stable. Incremental ESOP costs are forecasted to reduce gradually quarterly from Rs. 10 crore to Rs. 3 crore. New business incubations and investments may temporarily impact margins but are managed to avoid significant losses. Order wins double

Current/ Expected Orderbook/ Pending Orders?

FY23 order wins: approx. INR 900 crores. FY24 order wins: approx. INR 1,850 crores, nearly doubling from previous year. Most of FY24 order wins will be deployed in FY25 with revenues spread over 5-7 years. Company aims to maintain healthy order win ratio to build annuity business aligned with growth targets. Order book includes about two-thirds requiring capital deployment with varied payback periods. Transaction-linked brown label ATM (BLA) business forms less than 25% of order book, with high capital returns focus. Market share gains in ATM Cash segment from 39% to 49% over last

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CMS Info Systems LtdQ1 FY24Commercial Services & Supplies

CMS Info Systems Ltd Q1 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹296P/E: 16.1Market Cap: ₹5.0K CrSector: Commercial Services & Supplies

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→CMS Info Systems aims to achieve 2x revenue growth from FY21 to FY25, targeting Rs. 2,500 to Rs. 2,700 crores in revenue.
→The company expects Retail Cash solutions to grow substantially higher than other segments over the next three years.
→Their AIoT remote monitoring business is poised to double in scale over the next three years.
→Integrated Managed Services solutions, including software and fixed price contracts, are building out strongly.
→Cash Logistics business projected to grow at a midterm CAGR of 10%-13%.
→Managed Services to grow faster than cash business; overall strong growth across both segments anticipated.
→The opportunity size (TAM) is approximately Rs. 22,000 crores by FY27, providing significant headroom for growth.
→Order wins have increased from INR 900 crores in FY23 to INR 1,850 crores in FY24, indicating strong order momentum.

Margin guidance

Category 3

→CMS Info Systems targets a revenue of Rs. 2,500 - 2,700 crores in FY25, aiming to maintain upper-end confidence.
→PAT growth has been consistently above 20% YoY for five consecutive years, with a 23% growth in the latest year despite incremental investments.
→Operating margins have improved from 17-18% (pre-COVID) to over 25% currently, expected to remain stable.
→Incremental ESOP costs are forecasted to reduce gradually quarterly from Rs. 10 crore to Rs. 3 crore.
→New business incubations and investments may temporarily impact margins but are managed to avoid significant losses.
→Order wins doubled to Rs. 1,850 crores in FY24 with revenues spread over 5-7 years, supporting sustainable growth.
→Mid-term cash logistics business growth projected at 10-13% CAGR; managed services expected to outpace this.
→Focus on market share, revenue growth, and balancing margins continues to be the strategy.
→ROCE improved to 27.4%, reflecting strong capital efficiency and profitability.

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Fundraise plans

→Rajiv Kaul mentioned that the company is working on inorganic opportunities, including potential M&A deals, but did not provide any specific timelines or certainty about closures.
→No explicit mention was made about any current or planned fundraising through debt or equity in the provided text.
→The company focuses on deploying capital efficiently, generating high returns on capital, and reinvesting earnings into growth and new businesses.
→ESOP costs will gradually reduce over time, indicating no immediate large equity dilution planned.
→Overall, no direct guidance or announcement related to new fundraising via debt or equity was given in the discussed sections.

Order book

Yes

→FY23 order wins: approx. INR 900 crores.
→FY24 order wins: approx. INR 1,850 crores, nearly doubling from previous year.
→Most of FY24 order wins will be deployed in FY25 with revenues spread over 5-7 years.
→Company aims to maintain healthy order win ratio to build annuity business aligned with growth targets.
→Order book includes about two-thirds requiring capital deployment with varied payback periods.
→Transaction-linked brown label ATM (BLA) business forms less than 25% of order book, with high capital returns focus.
→Market share gains in ATM Cash segment from 39% to 49% over last four years indicate growing order book strength.
→Management cautious about predicting exact order book growth given market and bidding uncertainties.

Capex plans

Yes

→FY24 CAPEX was Rs. 99 crore, down from prior years due to project delays and deferred order placements.
→FY25 CAPEX expected to be higher to compensate for under-spend in FY24, targeting around Rs. 200 crore annually on average.
→Capital deployment mainly linked to order book; about two-thirds of the order book requires capital investment.
→CMS focuses on high-return capital deployment, cautious about transaction-linked BLA ATM business due to lower returns.
→Strategic investments include incubating new businesses in specialized logistics and collection services, with incremental operating costs of Rs. 8-10 crore.
→The company is working on inorganic growth via M&A and partnerships, with several opportunities actively pursued but timing uncertain.
→Investment continues in technology upgrades such as AIoT remote monitoring solutions and network compliance expansion.
→CMS aims to maintain high ROCE while investing to support growth and new business lines.

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