CMS Info Systems aims 3 times revenue of Rs 5,000-crore by FY30

It is looking to start new business lines like collection and recover services

Cash management and payment solutions company CMS Info Systems has set sights on an annual turnover of Rs 5,000 crore by 2030, up from the estimated Rs 1,600 crore in 2022-23 (FY23). It is looking to foray into new business lines, such as collection and recovery services.

Its capital expenditure is expected to be Rs 100-150 crore per annum for FY24 and FY25. The capex levels will be lower than over Rs 200 crore each in FY22 and FY23, which saw the peak investment phase.

Rajiv Kaul, executive vice-chairman and chief executive officer (CEO) of CMS Info Systems, said the capital expenditure will be funded through internal accrual, and the company does not envisage fresh equity infusion for investments for now.

The company’s financial profile is also supported by its sizeable net worth of Rs 1,397.5 crore as on September 30, 2022, and debt-free status. The debt indicators are expected to remain comfortable going forward, given the strong accrual generation and absence of any large debt-funded capex, according to ICRA.

The company’s liquidity remains strong with unencumbered cash and investment of Rs 311 crore as on December 31, 2022.

While cash management services are focussed on banks, it will expand these to provide them to non-banking finance companies and insurance firms for operations in rural areas.

Kaul said banks will focus on core activities — deposits, credit and risk management — and look to outsource more.

In the next 5-10 years, the company will look at new services through outsourcing from Banking Financial Services and Insurance.