CMS Info Systems (CMSINFO) Q4 22/23 earnings summary

Executive summary

• FY23 delivered 20% consolidated revenue growth and 33% net profit growth, supported by strong volume growth, productivity gains and a higher mix of value-added services.

• Cash Logistics remained the largest business; Managed Services grew faster and accounted for 32% of consolidated revenue.

• Currency handled reached ₹12.7 lakh crore, up 16% YoY; management said the FY25 revenue target of ₹2,500–2,700 crore remained on track.

Financial highlights

• Consolidated revenue from operations rose 20% to ₹19,147.30 million; EBITDA increased 35% to ₹5,412.96 million and PAT grew 33% to ₹2,972.36 million.

• EBITDA margin expanded 300 bps to 28.3%; PAT margin rose 140 bps to 15.5% YoY.

• Adjusted for ESOP/share-based payments, FY23 EBITDA was ₹551 crore and PAT ₹304 crore, up 35% and 33% YoY, respectively.

• Standalone revenue was ₹17,038.04 million, up 21%; standalone PAT increased to ₹2,754.07 million from ₹2,134.68 million.

Outlook and guidance

• Target is to double FY21 revenue by FY25 to ₹2,500–2,700 crore; FY23 revenue of ₹1,915 crore was described as on track.

• Growth opportunity is tied to formalization, consumption, bank and NBFC credit growth, physical network expansion and increased outsourcing.

• Management cautioned that record performances should not be expected every year and emphasized steady, long-term growth.

• AloT Remote Monitoring is being expanded into NBFCs, with pilots underway in other industries.