Cash management company CMS Info Systems on Tuesday said it is eyeing for a nearly 70 per cent growth in its top line in the next three years as the use of cash continues in the country’s economy.
The company had set a target to grow at a compounded annual rate of 18 per cent between FY22 and FY25, which would mean doubling of the revenue in the time frame. CMS exceeded the target in FY22 with a 22 per cent jump in its top line despite facing headwinds in the first quarter, its executive vice chairman and chief executive Rajiv Kaul told PTI.
Kaul said he is confident that the company, which derives over two-third of revenues from the cash management business, will achieve its goal of Rs 2,500 crore-2,700 crore revenue by FY25.
He said that use of cash will continue in the country despite digital alternatives like UPI. Kaul also added that growing economy will need more cash logistics solutions.
When asked about the increase in cash in circulation and if people are hoarding currency bills, he said at present some portion of the cash is going into people’s hands and never coming back to the formal system.
About the impact of the Central Bank Digital Currency (CBDC), Kaul said the usage of the digital instrument will be largely for business to business purposes and it will not have any major impact on the cash usage.
CMS handled over Rs 11 lakh crore of cash in FY22, of which Rs 1 lakh crore in March alone — its highest ever in any month, Kaul said, adding that the importance of cash is here to stay.
Apart from the cash management business, the company’s revenues come from its business to provide software solutions for automated teller machines, Kaul said, pointing out that the profit margins from this business will be higher going forward.
The company, having 22,000 employees, had cash and equivalent of over Rs 250 crore as of March-end and no debt, Kaul said, adding that the company will be scouting for acquisitions.
CMS had posted an 8 per cent growth in the March 2022 quarter revenue at Rs 444 crore and a 14 per cent increase in the net profit at Rs 64 crore.
Scrip of CMS Info Systems closed 3.80 per cent lower at Rs 242 a piece on the BSE on Tuesday. PTI AA HVA
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