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CMS Secures ₹1,000 Crore SBI Cash Deal
8 Jan
Summary
- CMS Info Systems inked a ₹1,000 crore cash solutions deal with SBI.
- The 10-year contract covers approximately 5,000 ATMs.
- Per-ATM revenue is expected to increase by 30-40% for CMS.
CMS Info Systems has announced a major ₹1,000 crore integrated cash solutions contract with State Bank of India. This 10-year agreement is set to provide substantial financial growth for CMS, with an estimated ₹500 crore in incremental revenue over its duration, equating to about ₹50 crore per year. The deal encompasses nearly 5,000 ATMs, marking a strategic shift in how banks are outsourcing their cash management operations.
The new contract is expected to significantly boost CMS's per-ATM revenue, realizing an increase of 30-40% compared to previous agreements. This enhanced revenue is attributed to the adoption of a comprehensive, full-service integrated cash management model. Furthermore, the contract includes provisions for annual price escalations linked to consumer price inflation, ensuring that CMS can effectively manage rising operational and logistics costs.
This development signals a trend of large banks returning to fixed-price outsourcing contracts with specialized cash management companies. CMS is optimistic about its financial outlook, reiterating its commitment to its projected services growth guidance for FY25-FY27. The company anticipates margins to recover to earlier levels as the SBI contract becomes fully operational from the fourth quarter of FY26.
