 "CMS Info Systems to bid for management contracts for 20,000 ATMs")
CMS Info Systems Ltd is bidding for ATM deployment and management contracts for 15,000 to 20,000 machines in the current financial year, a top company official said.
Much of it is the replacement of the existing Automated Teller Machines (ATMs) in the network and part expansion by public sector banks.
In the managed services businesses, it has booked new orders of Rs 1,850 crore in FY24.
“This covers long-term contracts with recurring revenues. The cash management is not counted in the order book as it is an annuity business,” Anush Raghavan, President of CMS Info Systems told Business Standard.
“With a base of 2.5 lakh installed ATMs across the country, there is about annual replacement demand of 20,000 machines, taking into expansion plans, the total demand is 25,000-30,000 for the industry annually,” he said.
The medium-term growth drivers for ATM and related managed services are formalisation, consumption, increased outsourcing, and new solutions.
There is a pipeline of 20,000 plus ATMs in FY25, and also 1,00,000 ATMs will shift from the bank capex to the Brown Label ATMs (BLAs) ecosystem.
BLA centres carry the logo of sponsor banks. The BLA network saves banks the headache of maintenance of ATM centres.
He said the capital expenditure in the year is linked to order execution. This year capex is pegged at Rs 275-300 crore for the execution order Rs 1,850 crore. The capex was about Rs 105 crore in FY24, lower than envisaged due to spilling over of as some orders spilled over to the next year. The expenditure was Rs 500 crore in the last three years.
The Managed Services & Technology Solutions business segment now contributes 39 per cent of the overall revenues. The segment’s revenues grew to Rs 886 crore in FY24 from Rs 658 crore in FY23.
Its overall revenues rose to Rs 2,265 crore in FY24 from Rs 1,915 crore in FY23. The company has guided for overall revenues to be in the range of Rs 2,500-2,700 crore in FY25, according to the analyst's presentation.
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