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Conference Call Overview • Date: July 26, 2024 • Submission to: BSE Limited and National Stock Exchange of India • Focus: Unaudited financial results for the quarter ending June 30, 2024
Key Financial Highlights • Revenue Growth: 17% increase reported by CEO Rajiv Kaul • Adjusted Profit After Tax (PAT): 13% increase • Cash Logistics Expansion: Added 3,000 touchpoints, totaling 140,000 • Managed Services and Technology Solutions: Robust order book of INR 200 crores • EBIT Margin: 17% in Managed Services with 31% revenue growth
Future Outlook • FY'25 Revenue Guidance: INR 2,600 to 2,700 crores (15% to 19% growth) • Managed Services Revenue Mix: Targeting 35%-40% by FY'25
Margin and Profitability Insights • Managed Services Margin Decline: From 18.6% to 17.1% • EBIT growth around 20% • Margin fluctuation attributed to business mix changes • Profitability Metrics: Established operations more profitable than newer areas
Competitive Landscape and Business Strategy • Retail Cash Management: Strong growth driven by technology and partnerships • Direct Engagement with Consumers: Primarily through partnerships with banks and NBFCs • Bank Partnerships: Expanding solution set with numerous banks and retailers
Capital Expenditure and New Business Lines • Capex Guidance for FY'25: Projected at INR 300 crores • New Business Opportunities: RFPs for approximately 20,000 ATMs expected
Additional Inquiries and Responses • Insurance Recoveries and Bad Debt: Specific Q1 data not available; annual reports will provide details • ESOP Costs: No immediate changes expected • BLA Model Transition: Banks seeking stability in costs; public sector banks still have ATMs to outsource
Conclusion • Optimism for FY'25: Rajiv Kaul expressed confidence in growth and new business initiatives, thanking participants at the end of the call.
CMS Info Systems Q4 FY24 Earnings Conference Call Summary
Key Highlights • Date of Call: May 17, 2024 • Submission to: BSE Limited and National Stock Exchange of India • Management Present: CEO Rajiv Kaul, CFO Pankaj Khandelwal
Financial Performance • Revenue Growth: 18% increase • Margin Improvement: 23% increase • Cash Reserves: Significant rise reported • Dividend Payout: 25% recommended • PAT Growth: Fifth consecutive year of over 20% growth • Ownership Transition: Achieved 100% public ownership
Business Segments • Managed Services and Technology Solutions: • Q4 revenue growth: 56% • Full-year revenue growth: 35% • New orders secured: Rs. 1,850 crores • Cash Logistics: • 20% CAGR over the past two years • Impact of exiting CIT contract noted • Retail Cash Management (RCM) business increased by 25%
Strategic Focus • Growth Strategy: Emphasis on execution and market opportunities • Key Themes: • India's economic growth • Increased outsourcing • Expansion of solution offerings • Future Revenue Target: Aim to double revenue by FY25 (Rs. 2,500 to Rs. 2,700 crores)
Market Insights • ATM Market: Replacement cycle presents outsourcing opportunities • Cash Logistics Potential: Significant growth potential in currency chest outsourcing • Retail Cash Industry: Current service to 150,000 points with potential for over 550,000
Challenges and Concerns • Increased Receivables: 32% of sales due to longer payment cycles • Margin Decline: Attributed to investments in new ventures • Market Unpredictability: No specific forecast for upcoming year’s order wins
Future Outlook • M&A Opportunities: Actively exploring but uncertain timeline for deals • Growth Projections: 10-13% growth rate for Cash Logistics • Technological Integration: Plans to leverage AIoT solutions for retail challenges
Closing Remarks • Regulatory Considerations: Discussion on CBDC and its potential impact • Commitment to Growth: Focus on reinvesting earnings and managing costs • Thank You Note: Kaul expressed gratitude to analysts and shareholders for their support.
CMS Info Systems Limited Q3 FY24 Earnings Call Summary
Earnings Highlights • Date of Call: January 31, 2024 • Key Executives: CEO Rajiv Kaul, CFO Pankaj Khandelwal • Financial Performance: • 19% revenue growth • 22% increase in adjusted PAT • Seventh consecutive quarter of over 20% PAT growth • New orders secured: INR 600 crores (total for FY24: INR 1,250 crores)
Segment Performance • Cash Management: 11% revenue increase • Managed Services and Tech Solutions: 38% growth • Revenue Target: INR 2,250 to 2,300 crores for FY24
Business Strategy and Compliance • Managed Services Growth: Expected 60-40 split with other segments by FY25 • Compliance Updates: • 85% of ATMs compliant • Focus on compliant contracts in CIT business • Investment in Compliance: Front-loaded for improved business quality
Order Book and CAPEX • Order Book: INR 1,250 crores, revenue expected over 3-5 years • CAPEX for FY24: Projected at INR 125 crores (lower than INR 150 crores)
Competitive Landscape • ATM Sector Competition: Acknowledged increased competition • Market Focus: Targeting semi-urban and rural areas for expansion
Future Outlook • ATM Contracts: 30,000 finalized, 20,000 expected to close soon • AIoT Business: Run rate over INR 100 crores, targeting 25,000 sites by fiscal year-end • Market Share Goal: Aim for 10% in BFSI ATM sector by fiscal year-end
Financial Management • Cost of Goods Sold: Increase due to revenue mix shift towards Managed Services • Provisioning Trends: Decrease in risk costs from 5.1% to 4.1%, expected below 4% by FY25
Strategic Initiatives • Mergers and Acquisitions: Preference for organic growth and small tuck-in deals • Software Solutions: Competitive edge in ATM space due to technical expertise
Conclusion • Future Updates: Further information to be provided at Analyst Day.
CMS Info Systems Q2 FY '24 Earnings Conference Call Summary
Key Highlights • Date of Submission: October 31, 2023 • Meeting Date: October 26, 2023 • Key Executives: Rajiv Kaul (CEO), Pankaj Khandelwal (CFO)
Financial Performance • Revenue Growth: 15% increase • Adjusted PAT Growth: 25% increase • Consecutive Quarters of PAT Growth: Six quarters over 20% • Cash Logistics Revenue Growth: 11% • Managed Services Revenue Growth: 26% • FY '25 Revenue Target: INR 2,500-2,700 crores
Competitive Landscape • Focus Areas: High-margin business, selective growth in cash logistics and RMS • Future Growth Drivers: Retail segment expected to drive growth
ATM Orders and Market Insights • Expected ATM RFPs in FY 2024: 51,000 (20% new, 80% replacements) • Orders Secured in H1 FY 2024: INR 650 crores
Financial Concerns • Increased Receivables: Attributed to business growth and payment delays • Capital Expenditure Projection: INR 150-175 crores for FY 2024 • Bad Debt Write-offs: Increased by INR 25 crores
Employee Stock Option Plan (ESOP) • ESOP Grants: Two grants in Q1 and Q2 • Performance-based ESOPs: 50% of total options • P&L Charges Reduction: From INR 11 crores to INR 2 crores over three years
Operational Insights • Cash Logistics Operations: Handles INR 3.3 trillion, 6% YoY growth • Managed Services Order Book: Approximately INR 3,800 crores • Banking Sector Sites: 22,000 operational sites
Strategic Focus • Manufacturing Alignment: Focus on Make in India initiative • Revenue Breakdown: 60% from ATMs, 40% from retail and cash-in-transit services
Closing Remarks • Overall Performance: Strong first half of the year despite rural demand slowdown • Confidence in Future Growth: Positive trends in metro consumption and diversified business lines
CMS Info Systems Limited Q1 FY '24 Earnings Conference Call Summary
Key Financial Highlights • Revenue Growth: 13% increase to INR 512 crores. • Adjusted PAT Growth: 22% increase to INR 87 crores. • Consecutive Growth: Fifth quarter of 20% year-on-year PAT growth.
Segment Performance • Cash Logistics: 12% revenue increase. • Managed Services & Tech Solutions: 17% revenue growth.
Management Insights • ATM Outsourcing Trends: Emphasis on ongoing trends and improvements in trade receivables. • Days Sales Outstanding (DSO): Improved by 40 days from FY '21 to '23. • Future Growth Targets: Focus on doubling FY '21 revenue by FY '25.
Capital Expenditure • Investment: INR 350 crores in growth capex over the last two years; projected INR 150-175 crores for the current year. • Order Book: Total order book at INR 3,300 crores, with INR 150 crores from managed services.
Investor Q&A Highlights • ATM Management: 72,000 ATMs managed; competitive metrics not disclosed. • Cash Management Business: Expected growth as banks outsource operations. • M&A Plans: Current focus on growth and maintenance capex; M&A opportunities assessed as they arise. • Union Issues: No significant issues reported in the past two years.
Business Strategy and Market Position • Integrated Platform: Focus on cash logistics, managed services, and AI remote monitoring. • Market Share: Over 40% in the overall cash market; 25% in AIoT remote monitoring. • Cash Losses: Distinction between cash losses in transit and reconciliation losses.
Future Outlook • Revenue Target: Commitment to achieving FY '25 revenue target of INR 2,500-2,700 crores. • Dividend Payout: Maintained at 25%; INR 450 crores in cash available for future dividends. • Optimism for Growth: Positive outlook for the upcoming year and gratitude for investor support.
Communication Overview • Date of meeting: May 31, 2023 • Transcript of May 25, 2023, meeting available on the website • Signed by Company Secretary Praveen Soni
Meeting Highlights • Welcome and Agenda: • Led by Praveen Soni; focus on mobile etiquette and business education • Cautionary Statements: • Discussion on forward-looking statements and risks
Company Journey and Strategy • CEO Insights: • Rajiv Kaul introduced management and company history since 2009 • Emphasis on cash logistics and ATM expansion in India • Market Position: • Strong distribution network; market leader in cash logistics
Financial Performance • Growth Trajectory: • 17% CAGR over 14 years; 20% revenue growth in FY20 • Cash Circulation in India: • More ATM transactions than card payments
Business Segments • Main Segments: • ATM cash management, retail cash solutions, cash-in-transit services • Innovative Solutions: • Retail Cash Vaults and CashX for real-time settlements
Operational Efficiency • Daily Operations: • Servicing 10,000-12,000 bank branches daily; 20% productivity growth • Customer Retention: • Strong retention rates; growth opportunities in ATM and retail sectors
Future Growth Areas • Key Business Areas: • Banking automation, ATM as a service, software, remote monitoring • Technological Advancements: • Focus on AIoT solutions for ATM security
Financial Strategy and Capital Allocation • Capital Allocation: • 24% XIRR from 2009 to 2023; 80% for growth • Collections Space: • Pilot projects initiated for entry exploration
Economic Context • Cash Resilience: • Ongoing cash usage despite digital payment promotion
Market Outlook • Positive Economic Indicators: • Expected growth in cash logistics and managed services • Revenue Projections: • Aim to double revenue from FY21 to FY25
Compliance and CapEx • Compliance Progress: • 70% completion expected by FY24 • Capital Expenditure Plans: • Estimated need of ₹150-175 crores for the year
Conclusion • Growth Confidence: • Positive outlook on cash activity; projected 10-12% revenue growth
Summary of Conference Call
Company’s Approach to Measuring Productivity • Focus on daily throughput; 20% growth in activities over four years
Importance of Culture and Technology • Emphasis on culture and technology for operational efficiency
International Expansion and Business Model • Uncertainty in international expansion; focus on domestic horizontal business model
Evolving Landscape of Digital Payments • Growth of digital payments and e-commerce in India anticipated
Current State of ATM and Retail Cash Management • Significant ATM withdrawals; retail cash management growth expected
Conclusion • Gratitude expressed to management and attendees for participation
CMS Info Systems Q3 FY '23 Earnings Call Summary
Company Overview • Date: February 3, 2023 • Submitted transcript to BSE and NSE • Hosted by Axis Capital • Key Executives: CEO Rajiv Kaul, CFO Pankaj Khandelwal
Financial Performance • Strong performance with: • Over 20% year-on-year growth in revenue, EBITDA, and PAT for the quarter • 23% revenue increase to INR 1,413 crores for the nine-month period • Significant growth in segments: • Cash management revenue up 16% • Managed services revenue up 39%
Strategic Focus • Ongoing investments in infrastructure • Expanding banking access in underserved areas • Anticipated growth opportunities in the sector
Q&A Highlights • CBDC Discussion: • Potential to complement UPI and facilitate cross-border transactions • Remote Monitoring Business: • Successful ramp-up with expansion into new areas • Expense Increase: • Attributed to business mix change and start-up costs, no significant rise in bad debt provisions
Market Insights • Cash management sub-segment growth consistent across ATM, RCM, and CIT • Increased cash usage in metropolitan areas (16% year-on-year) • Focus on ATM additions in semi-urban and rural areas
Capital Expenditure and Compliance • FY '23 capital expenditure guidance: INR 225 crores • Anticipated decrease in FY '24 • Compliance rollout expected to progress significantly in FY '24
Future Outlook • Selective bidding strategy for future orders • Regulatory push for ATM implementation in major and smaller cities • Optimism about growth in RCM business driven by organized retail and financial services
Order Book Status • Growth from INR 2,000 crores to INR 3,000 crores since going public • INR 800 crores added in the current fiscal year • 50% of new order book has gone live
Compliance and Revenue Impact • Current cassette swap compliance at 7-8%, expected to rise to 20% in 4-6 months • Penalties for non-compliance likely directed at banks, not CMS
Conclusion • Management expressed optimism for future performance • Commitment to provide further updates in the next quarter