CMS INFO SYSTEMS LOOKS FOR A QUEEN

Cash is still king for the ATM solutions provider, which is trying to diversify its revenue mix

- Shayan Ghosh

In September 2021, when Rajiv Kaul, vice-chairman and chief executive of CMS Info Systems, India's largest cash management firm, met investors, he was desperate to explain that his business had potential. The questions he faced were primarily around how the dwindling use of cash in the years ahead would impact a business that relies on the movement of paper currency.

Kaul, however, was unfazed. "During demonetisation, you said cash will die. During covid-19, you said cash is dying. How many times will it die," I asked them," he told Mint during a recent interaction in his office in Mumbai.

However, that wasn't the response the investors were looking for. But Kaul, a former chief executive of Microsoft India, had something more to offer. "Perception is bigger than reality. We told the investors they would be gaining entry into a new business, one that we have spent money on from our books. If it scales up they would see the gains," he said. Kaul was referring to remote monitoring, a business that entails overseeing automated teller machines (ATM) remotely to prevent unauthorized transactions.

The investors' concern is understandable. For years, CMS, a company that went public in December 2021, has relied on cash management for the bulk of its revenue. Even today, 62.5% of its top line comes from cash management. But, with the threat from digital payments looming large, the company has started to diversify into new lines of business.

Aside from remote monitoring, it is now looking to get into debt collection and bullion logistics.

The company's financials indicate that it isn't in any immediate danger. CMS clocked revenue of ₹2,265 crore in FY24 and it is targeting a topline of ₹2,500-2,700 crore this fiscal year. The company's consolidated net profit stood at ₹347 crore in FY24, having risen steadily from ₹168.5 crore in FY21.