CMS Info Systems bullish on remote ATM monitoring services for banks

IPO-bound CMS Info Systems, the largest cash management company in terms of the number of ATMs and retail pick-up points (Frost & Sullivan), is bullish on remote ATM monitoring services for banks in a big way and will scale it up..

CMS Info Systems is also among the top 3 largest ATM cash management companies worldwide based on number of machines serviced.

In the middle of the pandemic, banks wanted us to be inventive about cash management and ATM security and we found remote monitoring of ATMs as an effective way to secure them. CMS claims to be fully ready for commercially launch it and scale it up over the next six months across 20,000 ATMs including those of the SBI Group.

CMS closed FY'21 with a revenue of Rs 1,310 crore from which it earned Rs 170 crore in net profit. Its technology services arm, which fetches 30 per cent of the topline, is sitting on Rs 2,000-crore order book as per a recent ICRA report.

As much as 70 per cent of the income come from cash management services, which is clipping at 4 per cent per annum as per its Offer Document available in public domain.

CMS' business includes installing, maintaining and managing assets and technology solutions on end-to-end outsourced basis for banks under long-term contracts, handling cash across retail touch points.

CMS has pan-India fleet of 3,911 cash vans and network of 224 branches and offices as of March 2021. Its fleet cover 741 districs across all the states and union territories, except the Lakshwadeep and through its network, it serves over 1,33,000 business points across ATM cash management, retail cash management and managed services businesses.

In fiscals 2019, 2020 and 2021, CMS serviced 41,836, 44,497 and 40,249 retail pick-up points, respectively, through its fleet of over 3,900 cash vans, over 220 offices, according to the IPO document and during these years it serviced 52,691, 58,458 and 62,919 ATMs, respectively.

In fiscal 2021, CMS completed 6.7 million ATM activities and 6 million retail cash management pick-ups; and it received an average of 9,276 ATM first line maintenance calls per day.

Baring owns 100 per cent of the Rs 1,300-crore company through its affiliate Sion Investment Holdings and the company is awaiting final observations from the market regulator before hitting the market with a Rs 2,000-crore share sale, which will be an OFS (offer for sale).


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