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CMS Info Systems Ltd
CMS Info Systems Ltd: A Leading Cash Management Company
About The Company
CMS Info Systems Limited is India's largest cash management company in terms of the number of ATM points and retail pick-up points as of March 31, 2021. The company is engaged in installing, maintaining, and managing assets and technology solutions on an end-to-end outsourced basis for banks, financial institutions, organized retail and e-commerce companies in India.
Business Segment
Cash management services (69% of FY21 revenues): Includes end-to-end ATM replenishment services; cash pick-up and delivery; network cash management and verification services;
Managed services (28% of FY21 revenues): Includes banking automation product sales, deployment, and associated annual maintenance; end-to-end Brown Label deployment and managed services for banks; The company has an order book of Rs 2,000 crore to be executed over the next 5-7 years.
Others (3.5% of FY21 revenue): Includes end-to-end financial cards issuance and management for banks and card personalization services.
Integrated Business model It caters to a broad set of outsourcing requirements for banks, financial institutions, organized retail, and e-commerce companies in India and has a track record of successfully incubating and building multiple new service lines. In 2017, they acquired the business of a small Brown Label ATM services. In addition, in 2019, they entered the multi-vendor software solutions segment and are now a leading player for multi-vendor software opportunities in India. Their presence across the entire value chain makes it a one-stop solution for its customers.
Business Highlights Snalshop
Business Key Verticals
Cash Management
Managed Service
Tech Solution
PAN India Presence
CMS presence across the cash value chain
CMS Journey So Far
Business Performance
Cash Management Business
Managed Service Business
CMS Competitive Edge
India Industry Size
India Is The World’s 3rd Largest ATM Market With Significant Underpenetration In SURU(1) And Low Cash Velocity
Cash Transactions in India to grow at higher CAGR than previous years
Financial Performance
Cash Management
Managed Services
Profit and Loss So Far
Balance Sheet
Cash Flow Statement
Management
Shareholding Pattern
Opportunity Size
Strength
Leading player in cash management business – Incorporated in 2008, CMS is the leading player across all verticals of cash management business. Along with its subsidiary (Securitrans India Private Limited), the company manages almost 70,000 ATMs (as of March 2022), which form ~46% of the total outsourced ATMs in India, and ~28% of the total ATMs in India.
Leading in cash management - CMSINFO is India’s #1 cash management company based on number of ATMs serviced and retail pick-up points as of March 31, 2022, commanding a leading ~46% market share in the ATM cash management business, ~36% market share in the retail cash management business and ~26% market share in the cash-in-transit business. The company handles ~36% of the Rs 31 trillion that makes up India’s total cash in circulation (CIC). The company is also one of the largest ATM cash management companies worldwide based on number of ATM points as of March 31, 2022.
CMS can grow double digit in the next 5 year - (1) renewal/ replacement of ATMs over next 3 years, (2) compliance requirements leading to higher realization (route and cassette swap), (3) consolidation into an oligopoly (similar to global markets) with smaller players exiting the market space owing to strict compliance regulations (requiring upfront costs), and (4) increased outsourcing by banks.
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I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.
Source - Company Presentation, Research Report. Disc - Given company in the company and information is for an knowledge purpose as this is not an recommendation.
I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.
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