CMS Info share price fell 13% in trade today; here's what's dragging stock

CMS Info Systems revenue for the second quarter ended September 30 stood at Rs 624.5 crore

CMS Info Systems shares plunged 13 per cent on Monday and registered an intraday low of Rs 503 per share on BSE. The stock declined after the company's Q2 result showed a decline in Earnings before interest, tax, depreciation, and amortisation (Ebitda) margins. 

 

At around 12:34 PM, CMS Info Systems shares were down 12.16 per cent at Rs 508.1 per share. In comparison, the BSE Sensex was up by 1.36 per cent at 80,478.69 at around the same time. The market capitalisation of the company at around the same time stood at Rs 8,291.34 crore. 

 

On Friday, after market hours, CMS Info Systems posted a net profit of Rs 90.9 crore for the quarter ended September 30 as compared to Rs 84.4 crore a year ago, up 7.7 per cent. 

 

The company's revenue for the second quarter ended September 30 stood at Rs 624.5 crore an increase of 14.8 per cent as compared to Rs 543.7 crore year-on-year (Y-o-Y). 

 

The Ebitda for the quarter under review stood at Rs 153 crore as compared to Rs 145.6 crore a year ago which implies 5 per cent rise Y-o-Y.

 

However, Ebidta margin contracted by 230 basis points (bps) to 24.5 per cent as compared to 26.8 per cent a year ago. Sequentially as well, the Ebitda margin declined 90 bps. 

 

"Our Managed Services & Technology Solutions business segment grew 30 per cent to cross Rs 500 crore revenue in H1. Our AIoT RMS use cases are being piloted in non BFSI sectors. We are focused on accelerating execution of our order book, so that we can close Q4 with a strong base for FY26," said Rajiv Kaul – executive vice chairman, whole time director and CEO, CMS Info Systems.

 

AIoT RMS stands for Artificial Intelligence of Things Remote Monitoring System.

 

CMS Info Systems is India’s leading business services company providing logistics and technology solutions to banks, financial institutions, organized retail, and e‐commerce companies with a presence across Cash Logistics, Managed Services, and Technology Solutions. 

 

The company's businesses include ATM and Retail Cash Management, Banking Automation, ATM‐as‐a‐service, AIoT Remote Monitoring, Software Solutions and Card Issuance, Management & Personalization. The company aims to enable financial inclusion by providing access to formal banking services and driving seamless physical payments in India.

 

In the past one year, CMS Info Systems shares have gained 60.74 per cent against Sensex's rise of 24.4 per cent.