CMS Info Systems (CMSINFO) Q1 24/25 earnings summary

Executive summary

• Achieved 17% year-over-year revenue growth in Q1 FY25, reaching INR 5,994 million, with adjusted PAT up 13% and strong momentum in managed services and technology solutions despite seasonality and election-related impacts.

• Secured major mandates in technology solutions, including a unified 'Build & Operate' AIoT surveillance project for a leading bank across 2,000 locations.

• Added 3,000 new touchpoints in cash logistics, reaching 140,000 business points, and maintained leadership in cash logistics and banking automation.

• Strong track record of high revenue and earnings growth, with FY21–FY24 revenue CAGR at 20% and PAT CAGR at 30%.

• Robust order wins in managed services and tech business, with new contracts totaling INR 2,000 million.

Financial highlights

• Q1 FY25 consolidated revenue grew 17% year-over-year to INR 5,994 million, with adjusted PAT up 13% to INR 985 million and a margin of 16.4%.

• Adjusted EBITDA margin for Q1 FY25 was 27.4%, with profit before tax at INR 1,213 million.

• Cash logistics revenue rose 10% YoY to INR 3,870.9 million; EBIT up 5% to INR 990 million.

• Managed services and tech solutions revenue surged 31% YoY to INR 2,390 million; EBIT up 20% to INR 410 million, with a 17% EBIT margin.

• Basic EPS for Q1 FY25 was 5.58, up from 5.46 YoY.

Outlook and guidance

• Management expects FY25 revenue growth in the 15%–19% range, targeting INR 26,000–28,000 million, with confidence in meeting annual growth guidance.

• Managed services and technology solutions business is on track to surpass INR 10,000 million in FY25.

• Majority of last year’s order book expected to go live in the next two quarters.

• Expect improvement in consumption trends in Q2 and Q3, driven by festive season.

• Mid-term growth drivers include formalization, increased outsourcing, new solutions, and M&A in fintech and specialized logistics.