CMS Info Systems, country’s largest cash management and payment solutions company, is targeting to handle over Rs 13.2 trillion of cash in FY24, higher than Rs 12.70 trillion handled in FY23, CFO Pankaj Khandelwal told FE.
“During Q3 and Q4, the transactions are usually higher than Q1 and Q2, primarily due to festival season,” he said. During Q2FY24, the company handled cash to the tune of Rs 3.3 trillion, he added.
CMS Info Systems primarily operates in the cash logistics business and managed services and technology solutions business. In FY14, 100% of its business consisted of cash logistics solutions but currently the managed services business is contributing 38% to overall overall revenues, he said.
Within the cash logistics business, the company has three separate verticals–ATM cash management wherein the company replenish cash for the ATMs on behalf of banks, retail cash management where cash is collected across large retail outlets and deposited with the retailer’s bank and cash in transit (CIT) business which is the bulk movement of cash.
As on March 31, the company operated and managed 72,000 ATMs or 30% of overall ATM in India and had around 52,000 retail touch points. The company roughly adds about 5,000 to 7,000 ATMs each year and will likely continue the pace of new additions, Khandelwal said during FY24. He added that the company will also likely replace or purchase new cash vans to the tune of 500-700 during FY24. As of September 30, it manages over 4,000 cash vans across country.
Overall, the company expects around Rs 2,500 crore to Rs 2,700 crore revenue by FY25. During FY23, it did Rs 1,915 crore in revenue and during Q2FY24, its revenue were at Rs 544 crore, up 15% on a year-on-year (YoY) basis.
When asked whether rising digitsation would lead to lower utilisation of cash by people, Khandelwal said the company rather witnessed a 10% YoY growth in ATM usage by citizens in metro cities during Q2.
“We believe all payment mode will continue. One needs to know that UPI growth hasn’t come from switching off cash only, it has come from other online and digital payment methods too,” he said.
