CMS Info Systems Limited: history, ownership, mission, how it works & makes money

A Brief History of CMS Info Systems Limited

CMS Info Systems Limited, established in 2009, operates as a leading technology-driven cash management company in India. The company primarily provides end-to-end cash management solutions, which encompass cash logistics, ATM management, and cash recycling services.

In 2018, CMS Info Systems was acquired by the private equity firm, Baring Private Equity Asia, for approximately ₹3,000 crores. This acquisition marked a pivotal shift in the company's strategy, enhancing its operational capabilities and market reach.

CMS Info Systems went public on December 21, 2021, with its initial public offering (IPO) priced at ₹216 per share. The IPO garnered significant attention, leading to an oversubscription of 1.7 times in the retail category. The total issue size was ₹1,100 crores, which included a fresh issue of ₹300 crores and an offer for sale of ₹800 crores.

As of March 31, 2023, CMS Info Systems reported a revenue of ₹1,550 crores, reflecting an increase of 10% year-on-year. The net profit for the fiscal year stood at ₹175 crores, up from ₹150 crores in the previous year, indicating a growth of 16.67%.

The company's asset base as of March 2023 was approximately ₹1,000 crores, while total liabilities stood at ₹800 crores, resulting in a debt-to-equity ratio of 0.8, indicating a healthy leverage position.

In terms of market performance, the share price of CMS Info Systems as of October 2023 was approximately ₹280, a gain of 30% since its IPO. The company's market capitalization reached ₹8,000 crores.

Recent strategic initiatives have included partnerships with leading banks and financial institutions, aimed at expanding its service offerings in the digitization of cash management. The innovative approach has positioned CMS Info Systems effectively within a competitive landscape, catering to the needs of various retail and banking clients across India.

A Who Owns CMS Info Systems Limited

CMS Info Systems Limited is a public company based in India, primarily engaged in offering cash management services. As of the latest data, the ownership structure is diversified among institutional investors, retail investors, and the founding family. The latest publicly available shareholding details reflect the distribution of ownership as follows:

The promoters of CMS Info Systems Limited have maintained a significant stake in the company, highlighting their ongoing commitment and confidence in the business. Specific individuals and entities associated with this ownership include:

Foreign Institutional Investors play a crucial role in the company's equity market, contributing to a substantial portion of the shareholding. As of the last report, several key FIIs have invested in CMS Info Systems Limited:

In the latest quarterly report for Q2 FY2023, CMS Info Systems reported a total revenue of ₹300 crore, with a net profit margin of 12%. The company's performance shows stability, supported by the revenue growth in the cash management segment.

The share price of CMS Info Systems Limited as of October 2023 is approximately ₹220 per share, reflecting a year-to-date performance of 25%. The market capitalization stands at around ₹2,200 crore.

Overall, the ownership structure and the investment by institutional players indicate a healthy level of confidence in CMS Info Systems' business model and future growth prospects.

CMS Info Systems Limited Mission Statement

CMS Info Systems Limited aims to be the leading provider of integrated cash management solutions for businesses in India. The mission is centered on delivering exceptional value through innovative technology and customer-centric service. As of September 2023, the company focuses on maintaining a dominant presence in the market by enhancing operational efficiency and reliability.

To better understand the financial aspect of CMS Info Systems, it is important to look at their recent performance metrics. In the fiscal year 2023, the company reported a revenue of ₹785.52 crore, reflecting a growth of 8.2% compared to ₹726.07 crore in the fiscal year 2022. The EBITDA for the same period stood at ₹198.32 crore, yielding an EBITDA margin of 25.3%.

CMS Info Systems operates in multiple segments within the cash management industry, which is vital for its mission to enhance customer satisfaction. The company emphasizes technology-driven solutions, such as automated cash handling and efficient logistics, enabling them to meet a diverse range of client needs. As of 2023, CMS has a fleet of over 2,500 cash vans and more than 85,000 ATMs serviced across India.

Below is a detailed table showcasing key financial metrics and operational statistics of CMS Info Systems Limited for the fiscal year 2023:

The mission of CMS Info Systems is rooted in integrating technology with its operations to provide transparent and efficient services to its clients. The company continues to invest in tools and platforms that enhance customer experiences while ensuring security and reliability in cash management processes.

As part of its strategic goals, CMS Info Systems emphasizes sustainable practices and aims to reduce its carbon footprint. In 2023, the company introduced initiatives aimed at optimizing route planning for cash transport, which is projected to reduce fuel consumption by 15% over the next three years.

The alignment of CMS Info Systems' mission with its performance metrics underlines its commitment to growth and sustainability in the cash management sector, as it addresses the evolving needs of businesses across India.

How CMS Info Systems Limited Works

CMS Info Systems Limited operates within the cash logistics and supply chain management sector in India. The company provides a comprehensive range of services that includes cash management, ATM services, and enterprise solutions to banks and financial institutions. As of March 2023, the company managed around 1,000 ATMs and provided cash management for approximately 1,500 corporate clients across various sectors.

In the fiscal year ending March 2023, CMS Info Systems reported a revenue of approximately ₹2,300 crore, reflecting a growth of 12% compared to the previous fiscal year. The company’s net profit for the same period was approximately ₹200 crore, translating to a profit margin of around 8.7%.

CMS’s operational model includes the use of technology to enhance the efficiency of its services. They utilize an integrated software system that monitors cash flow across their network of ATMs and branches. This system helps in optimizing cash replenishment schedules, reducing operational costs and enhancing service delivery. The company has invested significantly in digital solutions, with about ₹150 crore allocated towards technology upgrades in 2023.

Another aspect of CMS Info Systems' operation is its workforce. The company employs around 8,500 personnel, including security staff, technology experts, and customer service representatives. The average annual salary for these employees varies, but it is estimated that the company spends around ₹600 crore annually on employee compensation.

In terms of market presence, CMS Info Systems has expanded its footprint into various regions of India, capturing a market share of approximately 15% in the cash logistics segment. The company has also developed partnerships with major banking institutions like State Bank of India and ICICI Bank, enhancing its service offerings and operational reach.

The company’s logistics capabilities include the transportation and handling of cash and other valuables. CMS Info Systems employs a fleet of over 600 vehicles for cash transit, ensuring secure and efficient delivery to clients. This fleet is monitored in real-time through GPS tracking systems to optimize routes and improve service reliability.

Furthermore, CMS Info Systems is focused on sustainability and has set a goal to reduce its carbon footprint by 20% over the next five years. The company is actively exploring the use of electric vehicles in its fleet, targeting a transition of at least 30% of its vehicles to electric by 2025.

CMS Info Systems is also preparing for an IPO, with expectations to raise approximately ₹1,000 crore to fund further expansion and technological advancements. The company aims to utilize these funds to scale its operations, improve service efficiency, and capitalize on the growing demand for secure cash handling services in India.

Overall, CMS Info Systems Limited demonstrates a robust operational framework supported by data-driven decision-making and strategic partnerships, positioning itself as a key player in India’s cash logistics landscape.

How CMS Info Systems Limited Makes Money

CMS Info Systems Limited primarily generates revenue through its comprehensive suite of cash management solutions. This includes cash logistics, managed services, and ATM services. The company operates across various segments, influencing its financial performance significantly.

Revenue Breakdown

As of the fiscal year 2022-2023, CMS Info Systems reported a revenue of ₹1,235 crores, indicating a growth rate of 11.5% compared to the previous year. The revenue sources can be categorized as follows:

• Cash Logistics Services: ₹875 crores
• Managed Services: ₹250 crores
• ATM Services: ₹110 crores

Key Financial Metrics

The financial performance metrics provide insight into how effectively CMS Info Systems operates.

Market Position and Competitive Edge

CMS Info Systems is one of the leading cash management companies in India with a market share of approximately 15%. The firm benefits from a robust logistics network, partnering with over 100 banks and financial institutions. This extensive network allows CMS to facilitate efficient cash handling and distribution.

Growth Opportunities

Looking forward, CMS Info Systems plans to expand its service offerings in the digital payments space, aiming for a potential market of ₹20,000 crores in the next five years. Investments in technology will help improve service delivery and operational efficiency, expected to contribute an additional 20% to revenue growth.

Challenges

While CMS has a solid business model, it faces challenges from increasing competition and the evolving landscape of digital payments. In response, the company is focusing on diversifying its service portfolio and enhancing customer experience to maintain its competitive advantage.

Conclusion Overview of Revenue Streams

In summary, CMS Info Systems Limited's revenue generation is multifaceted. The financial data highlights the firm's solid performance in cash logistics, managed services, and ATM operations, underpinning the company’s growth trajectory.