AI-generated · cited to primary sources · not investment advice
CMS Info Systems (543441) May 2024 Filing Analysis
Does management do what it says?
ESOP costs remain at the INR 10 crore level for the current quarter, with the expected decline to INR 8, 6, and 4 crores still on the projected trajectory. (2 in progress, 1 exceeded, 1 met across 4 tracked commitments)
“The cost, this quarter cost was around Rs.10 crore. And going forward as we have guided you earlier also, in next two quarters that cost will be around Rs.10 crore and after that it will gradually reduce to Rs.6 crore, Rs.4 crore and Rs.3 crore.”
The new Vision AI business (HAWKAI) contributed exactly 5% to the revenue in FY25. (3 met, 2 in progress across 5 tracked commitments)
“Our AIoT business is poised to further scale-up and to double from the current levels in the coming three years.”
Provisions for risk costs in H1 FY25 stood at 4.3%, which is within the guided range of 4% to 5%. (4 met, 1 missed across 5 tracked commitments)
“We have guided as a team to a CAPEX or sort of our CAPEX run rate needed about Rs 200 crores per year... the CAPEX has slipped into FY25. So, FY25 CAPEX will be higher because of the under-spend in FY24.”
Risk costs, recognized as bad debts, have reduced from over 5% in FY24 to approximately 4% in H1 of the current year, aligning with the lower end of the target range. (3 met, 2 missed across 5 tracked commitments)
“Kunal, we were with the split was roughly 70:30 a few years ago, we guided towards getting to a 60:40 split by FY25.”
Management reported that they have already gone live with approximately two-thirds (66.7%) of the order book from the last five quarters, surpassing the 60% target. (1 exceeded, 1 met, 2 missed, 1 revised across 5 tracked commitments)
“From an immediate interest to you, FY25 we had a target of doubling our revenue from FY21. I am going to Slide #16, which is basically sort of 2x growth, 18% type of CAGR. We have in the first three years overachieved in that; we are still guiding to the Rs. 2,500 crores to Rs. 2,700 crore revenue range, though we feel reasonably confident to be in the upper end of that range.”
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