Cms Info Systems Ltd. · NSE:CMSINFO
Cms Info Systems — Q2/H1 FY24 Earnings Presentation
32 slides from Cms Info Systems's earnings presentation, Oct 26, 2023
Slide 1: Exchange intimation of investor presentation
CMSINFO/2310/007 October 26, 2023 To BSE Limited National Stock Exchange of India Limited Listing Department, Exchange Plaza, C-1, Block-G, 1st Floor, PJ Towers, Dalal Street, Bandra Kurla Complex, Bandra (East), Fort, Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 543441 Symbol: CMSINFO Sub: Intimat
Slide 2: Earnings Presentation Q2/H1-FY24
Earnings Presentation Q2/H1-FY24
Slide 3: Company Overview
CMS” Connecting Commerce COMPANY OVERVIEW ACCELERATING TRANSFORMATI
Slide 4: Leading Business Services Company Catering To BFSI & Retail Sector
Leading Business Services Company Catering To BFSI & Retail Sector Logistics Services Product Solutions Tech Outsourcing Services ATM Cash Retail Cash Cash in Bank Automation ATM Managed Card Mgmt. Software Remote Management Management Transit (CIT) Solutions Services Solutions Solutions Monitoring
Slide 5: Offering End-to-End One Stop Solutions
Offering End-to-End One Stop Solutions Key Business Verticals Financial Highlights (INR Mn) 28.08% 27.79% Cash Management 25.14% • End-to-end ATM replenishment – inclusive of cash withdrawal, ATM replenishment, cash 22.48% 19,147 18.36% evacuation and deposition for BNA/recyclers, day-end reporting,
Slide 6: CMS' Presence Across The Cash Value Chain
CMS’ Presence Across The Cash CMS’ Presence Across The Cash Value Chain Embedded into the clients' systems and process while offering a wide range of services at different stages of the cash cycle Value Chain Branch 1 2 ATM 3 1 Cash-in-transit services to the banks that run currency chests 1 ATM cas
Slide 7: Our Journey: Transforming into a Business Services Platform
600 Our Journey: Transforming into a Business Services Platform Revenue: ₹ 1,915 Cr 500 Adj. PAT Margin : 15.9% 9x Revenue 400 growth 300 11x EBITDA growth 200 Revenue: ₹ 216 Cr Adj. PAT Margin: 10.5% 100 Restructure Growth Resilience Accelerated expansion 0 2008-09 2011-12 2015-16 2019-20 2022-2023
Slide 8: Highly Qualified Management With A Diverse Board And Strong Governance
Highly Qualified Management With A Diverse Board And Strong Governance Shyamala Gopinath Tapan Ray Ms. Manju Agarwal Krzysztof Jamroz MD & Group CEO of Gift City Experienced Ex-DeputyRBI Governor of Executive Chairman at Roadrunner Directors Sayali Karanjkar Jimmy Mahtani Ashish Agrawal Non-Executiv
Slide 9: Leader In Cash Logistics Services In India
Leader In Cash Logistics Services In India ATM Cash Management Retail Cash Management Cash-in-Transit (CIT) and #1 Player* (RCM) Emerging Businesses #1 Player* #1 Player* 36% market share(1) 26% market share(1) Cash Logistics Revenue Cash Logistics EBIT & EBIT Margin (INR Mn) 13,263 (INR Mn) 11,108
Slide 10: Route Based Logistics With Extensive Distribution Across India
Route Based Logistics With Extensive Distribution Across India Deep entrenchment to India’s hinterland, Logistical planning and Route productivity are fundamental to CMS’ successful track record Cash Cash Management Operations Management OperationsCycleCycle 97% coverage pan-India including remote a
Slide 11: Our Cash Logistics Network
Our Cash Logistics Network World class scale, quality and risk management • Revenue model linked to # of visits per ATM (<2% variance) ATM • Annuity revenue model, >90% fixed • 72,000+ ATMs, Replenished every alternate day, Avg. ₹ 1.4 Cr / ATM per month • Partner with Transaction banking to offer tr
Slide 12: One Of The Few Integrated Players In India With A Strong Technology Edge
One Of The Few Integrated Players In India With A Strong Technology Edge Banking Automation Software Solutions AI based Remote Monitoring ATM As-a-Service Solutions #1 in ATM #1 in ATM Managed Services Revenue Managed Services EBIT & EBIT Margin (INR Mn) (INR Mn) 6,111 1,211 19.9% 4,896 19.8% 17.5%
Slide 13: India is the world's 3rd largest ATM market
India is the worlds 3rd largest ATM market Banking ALGO • MVS – Unified & dynamic Automation • ATMs, Currency recyclers, Self- Software interface and management service kiosks • ATM access security software • 1:2 branch to ATM ratio • SaaS-like business model • Product sale + 7-10 yr maintenance rev
Slide 14: The CMS Edge
The CMS Edge The CMS Edge An integrated, tech-led pan India business platform serving India's cash eco-system Leadership position across most segments, backed by operation excellence and robust financials Longstanding customer relationships leading to increased business opportunities Multi-year recu
Slide 15: Favourable macro-economic and industry trends
Favourable macro-economic and industry trends 1 | Fastest growing large economy: 6.1% avg. growth forecast next 5 years 2 | Growth in domestic consumption: drives 2/3rd of GDP 3 | Banks at the center of growing economy: in expansion mode 4 | Retail growth to fuel consumption 5 | Cash based payments
Slide 16: Mid-term growth drivers
Mid-term growth drivers Cash • 100,000 ATMs yet to be outsourced for Cash Mgmt. Logistics • Growth in organised retail; Direct2Retail and Cash-X solutions ATM • PSU banking refresh cycle: 80,000+ ATM refresh cycle Managed • Pvt. Sector branch expansion: 20,000+ new ATMs Services • Total outsourcing
Slide 17: Market Growth: Higher outsourcing create a large TAM Opportunity
Market Growth: Higher outsourcing create a large TAM Opportunity INR Crore 2.6x ₹ 22,000 Cr CAGR** BFSI Remote 3,000 25% Monitoring 11,620 ATM-as-a- 17% Service ₹ 8,500 Cr Banking 4,600 19% 6,200-6,500 Automation 4,570 1,800-2,000 Cash 1,650 7,900 19% 3,500-3,700 Logistics 2,730 FY21 FY27 Total TAM
Slide 18: Our Playbook: Accelerating growth & market expansion
Our Playbook: Accelerating growth & market expansion Lowest unit economics Establish right-to- Scale & productivity win Integrated offerings Strengthen Strong cashflow Expand Drive innovation Large & complex Talent & Tech Core generation TAM projects Customer engagement World class Invest in Quality
Slide 19: Q2/H1-FY24 Financial Overview
Q2/H1-FY24 FINANCIAL OVERVIEW
Slide 20: Q2/H1-FY24 Financial Highlights
Q2/H1-FY24 Financial Highlights Revenue Adjusted EBITDA Adjusted PAT (INR Mn) 15% (INR Mn) (INR Mn) 5,437 15% 40% 25% 923 Q2-FY24 1,573 4,717 239 1,373 741 82 1,821 1,556 29.1% 28.9% 15.7% 17.0% 3,079 3,377 Q2-FY23 Q2-FY24 Q2-FY23 Q2-FY24 Q2-FY23 Q2-FY24 Cash Mgmt. Managed Card Services EBITDA PAT P
Slide 21: Quarterly Operational Highlights: Cash Logistics Business
Quarterly Operational Highlights: Cash Logistics Business Revenue EBIT INR Mn INR Mn Cash Logistics: Operational Highlights 11% 18% • Business points for Cash Logistics (ATM + Retail Q2-FY24 3,605 953 3,242 806 Cash Management) at 129,000, up by 12% Y-o-Y 26.4% • Phase 1 of Cassette Swap roll-out on
Slide 22: Quarterly Operational Highlights: Managed Services + Card Services Business
Quarterly Operational Highlights: Managed Services + Card Services Business Revenue EBIT INR Mn INR Mn 26% 23% Managed Services + Card Services : Operational Highlights 2,061 388 Q2-FY24 1,638 315 • Managed Services new business wins of INR 500 Crore in the quarter 19.2% • H1-FY24 new business wins
Slide 23: Quarterly Consolidated Financial Performance
Quarterly Consolidated Financial Performance Particulars (All figures in INR Mn) Q2-FY24 Q1-FY24 Q-o-Q Q2-FY23 Y-o-Y Operating Income 5,437 5,116 6.3% 4,717 15.3% Expenses 3,980 3,640 9.3% 3,375 17.9% Operating EBITDA 1,457 1,476 (1.3)% 1,342 8.6% Adj. EBITDA 1,573 1,515 3.8% 1,373 14.6% EBITDA Marg
Slide 24: Half Yearly Consolidated Financial Performance
Half Yearly Consolidated Financial Performance Particulars (All figures in INR Mn) H1-FY24 H1-FY23 Y-o-Y Operating Income 10,553 9,250 14.1% Expenses 7,620 6,669 14.3% Operating EBITDA 2,933 2,581 13.6% Adj. EBITDA 3,088 2,643 16.8% EBITDA Margins (%) 27.79% 27.90% (11)Bps Adj. EBITDA Margins (%) 29
Slide 25: Historical Financial Overview
HISTORICAL FINANCIAL OVERVIEW
Slide 26: Historical Consolidated Income Statement
Historical Consolidated Income Statement Particulars (All figures in INR Mn) FY20 FY21 FY22 FY23 H1-FY24 Operating Income 13,832 13,061 15,897 19,147 10,553 Expenses 11,293 10,125 11,900 13,770 7,620 Operating EBITDA 2,539 2,936 3,997 5,377 2,933 Adj. EBITDA 2,640 3,040 4,080 5,510 3,088 EBITDA Marg
Slide 27: Historical Consolidated Balance Sheet
Historical Consolidated Balance Historical Consolidated Balance Sheet (All figures in INR Mn) FY22 FY23 H1-FY24 (All figures in INR Mn) FY22 FY23 H1-FY24 Sheet Assets Equity share capital 1,531 1,544 1,565 Non-current assets Other equity 11,030 14,081 15,469 Property, plant and equipment 3,470 4,697
Slide 28: Historical Consolidated Cash Flow Statement
Historical Consolidated Cash Flow Historical Consolidated Cash Flow Statement (All figures in INR Mn) Cash flow from operating activities: FY22 FY23 H1-FY24 (All figures in INR Mn) FY22 FY23 H1-FY24 Statement Cash flow from investing activities Profit before tax 3,014 4,010 2,272 Proceeds from sale
Slide 29: Strong Growth Track Record And Resilience During Covid-19 Period
Strong Growth Track Record And Resilience During Covid-19 Period Revenue Adj. EBITDA Adj. PAT(1) (INR Mn) (INR Mn) (INR Mn) 19,147 3,040 15,897 469 5,510 13,832 413 6,111 2,290 13,061 4,080 434 4,896 3,622 459 10,553 3,040 3,088 1,700 1,791 3,641 421 2,640 1,440 15.88% 16.97% 29.26% 14.41% 3,463 28.
Slide 30: Capital Market Information
Capital Market Information (BSE - CMSINFO | 543441, NSE – CMSINFO) Share Price Movement (Up to 30th September, 2023) 45.00% 35.00% 25.00% 15.00% 5.00% -5.00% -15.00% -25.00% Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 CMS BSE Sensex BSE Small Cap Share Price Data (As on 30th September, 2023) Sharehold
Slide 31: Disclaimer
Disclaimer CMS Info Systems Limited Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are i
Slide 32: Thank You
THANK YOU CMS” Connecting Commerce ACCELERATING TRANSFORMATI