CMS Info Systems (CMSINFO) Q2 24/25 earnings summary

Executive summary

• Revenue grew 16% in H1 FY25 and 15% in Q2 FY25, driven by managed services and technology solutions (up 28%) and cash logistics (up 8%), despite macro headwinds and order execution delays.

• Maintained market leadership in cash logistics, banking automation, and remote monitoring, with a 17% revenue CAGR from FY09 to FY24.

• Net profit for Q2 FY25 was ₹909.17 million, up 8% YoY; Board approved unaudited results with an unmodified review report.

• Prolonged monsoons, extended election cycle, and order execution delays, especially in PSU bank projects, impacted consumption and margins.

• Recognized for financial strength and governance, winning the Best CFO 2024 award.

Financial highlights

• Q2 FY25 revenue: ₹6,245.37 million (INR 624 crores), up 15% YoY; H1 FY25 revenue: ₹12,240 million, up 16% YoY.

• Q2 FY25 PAT: ₹909.17 million, up 8% YoY; PAT margin at 14.5–14.6%.

• H1 CapEx spend: ₹30 crores, below FY25 projection due to execution delays; total H1 FY25 CapEx at ₹657 million.

• Trade receivables increased by INR 175 crores due to delayed payments from a large bank project.

• Provisions for risk costs at 4.3% of revenue in H1, down from 5.1% in FY23.

Outlook and guidance

• FY25 revenue guidance maintained at ₹2,500–2,700 crores, with expectations to reach the midpoint; aiming for ~20% CAGR through FY27.

• Management expects improved order execution and revenue accrual in H2, targeting a strong Q4 and solid base for FY26.

• Growth drivers include ATM outsourcing, compliance roll-outs, AloT remote monitoring, and new business lines.

• Cash logistics business expected to grow at 10–13% midterm, driven by formalization and outsourcing trends.

• Large addressable market (TAM) expected to reach ₹22,000 crores by FY27, with 17–25% CAGR across key segments.