CMS Info Systems Ltd., India’s leading cash management provider, saw its stock drop by more than 10% in early trading after releasing its Q2 FY25 financials. Although the company reported a 7.8% year-on-year (YoY) net profit increase to Rs 90.9 crore, the market reacted to the softer margins and lower-than-expected operational growth.
Operating revenue rose 15% YoY to Rs 624.5 crore, compared to Rs 543.7 crore in the previous fiscal quarter. EBITDA increased by 5.1% to Rs 153 crore, though the EBITDA margin dipped from 26.8% to 24.5%.
The company’s stock opened at Rs 571.25, reached a high of Rs 574.90, and fell to a low of Rs 515.20. Despite revenue growth, CMS Info’s shrinking margins have tempered investor confidence, prompting a sell-off.
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