CMS Info Systems hosted a conference call on Jan 25, 2024. In the conference call the company was represented by    Rajiv Kaul (CEO & Executive Vice Chairman);    Pankaj Khandelwal (Chief Financial Officer);    Manjunath Rao (President Managed Services) and Anush Raghavan (President Cash Management Services).

Key takeaways of the call

Growth witnessed across both businesses. Seeing benefits from both increased formalization and refresh cycle in the banking sector.

New business wins in Managed Services & Technology Solution business  during Q3FY24 was Rs 600 crore and YTDFY24 was RS 1250 crore. Total order book has grown to Rs 4400 crore.  Its integrated platform is helping the company to execute large order book.

Execution of orders bagged in YTD FY24 will start by end of this fiscal and the contribution of it to top line will be more in FY25-26.

Expect a revenue growth of 17-19% (or Rs 2250-2300 crore) in FY24 on the basis of execution of order book on hand.  Confident of Rs 2500-2700 revenue for FY25 and expect to be in upper side of the range.

In cash logistics business added 4000 business points (a growth of 10% YoY). Continue to strengthen its infrastructure, added 500 vans to the fleet (YTD).

Managed Services & Technology Solution business has won mandate for ALGO AIoT Remote Monitoring Solution for 2,000 new sites.

Capex guided for FY24 was about Rs 150-175 crore.

For FY25 also 60:40 revenue mixes is to continue between cash logistics and managed services.  Managed services to grow faster along with retail business.  

MS margin is on lower side and currently focused on growing that business.

In cash logistics the company is focused on high yield business.