CMS Info Systems posts 10% rise in Q2 profit to ₹81 crore on stronger demand

what happened

According to Moody's, CMS Info Systems, a business services provider to banks, financial firms and retailers, lifted its September-quarter net profit 10% to ₹81 crore. Demand was strong across its sectors. Revenue grew 7% to ₹650 crore, and EBITDA rose 25% to ₹173 crore.

Cash logistics revenue edged up 2% to ₹404 crore, while the managed services and technology solutions division grew 19% to ₹321 crore. Executive Vice Chairman and CEO Rajiv Kaul said it was the fourth straight quarter of record services revenue. Technology and payment solutions brought in ₹127 crore in the quarter, compared with ₹120 crore for a full year four years earlier.

Kaul said the company won two large bank mandates covering branch surveillance and ATM software, and that most second-half revenue is already contracted.

why it matters

Growth is coming from services and technology rather than core cash logistics, and the company says this is shifting its business mix. Contracted second-half revenue reduces uncertainty for investors in Indian business services stocks. Further growth depends on expanding bank branch networks and automated retail touchpoints.

market impact

CMS Info Systems shares: strong profit and contracted revenue support the stock

• ▲CMS Info Systems shares pressure up — profit growth and contracted second-half revenue support the outlook

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