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Radiant Cash Management Services Ltd Management Discussions

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Oct 3, 2025|12:00:00 AM

Radiant Cash Management Services Ltd Share Price Management Discussions

Economic Overview

Global Economy1

In CY 2024, the global economy navigated several challenges, including ongoing geopolitical tensions, supply chain realignments, evolving trade patterns and alterations. Despite these headwinds, global GDP grew by 3.3% during the year.

Global liquidity conditions reflected a complex interplay of central bank strategies, economic uncertainties and inflationary pressures. The US Federal Reserve cut interest rates by 50 basis points to 4.25% but later adopted a more cautious stance due to concerns over tariff-related inflationary pressures and depreciating currencies.

In contrast, the European Central Bank implemented rate cut of 175 basis points over the course of one year, reducing the deposit rate to 2% in June.2 However, growth prospects in Europe remain subdued compared to the US, with the manufacturing sector facing contraction amid subdued domestic demand, competitive pressure from Chinese exports. The imposition of broad tariffs by the US has reduced the competitiveness of European exporters.

The market structure showed strong regional variations, with North America maintaining a dominant position due to its developed banking sector and high penetration of advanced cash handling technologies. Europe was driven by highly developed financial services and stringent cash handling regulations. The Asia-Pacific region demonstrated the fastest growth potential, fuelled by rapid economic expansion, increasing banking penetration and growing retail and e-commerce activities.

During the year, gradual rise of bond yields in advanced economies, demonstrated declining investor confidence. This prompted global investors to shift to more liquid assets as well as safe haven assets such as gold, leading to its price reaching unprecedented heights during the year.

Outlook

Global growth is expected to moderate, with projections of 2.8% growth in CY 2025 and 3% in CY 2026. Advanced economies are anticipated to achieve their inflation targets ahead of emerging markets and developing markets, with global inflation forecasted to average 4.3% in CY 2025. However, sharp commodity price rises can happen as a result of ongoing geopolitical tensions. Shifting policies under the new U.S. administration have also raised concerns about geo-economic fragmentation, which could put exports at risk.

Emerging economies are expected to drive global growth amidst geo-economic fragmentation. The evolving global landscape is expected to result in development of resilient supply chains and innovative solutions. Driven by technological innovation and prevailing disinflationary trends, the outlook remains cautiously positive for the global economy.

Indian Economy3

Indias economy continued to exhibit resilience, growing at 6.5% in FY2024-25 despite external economic uncertainties and geopolitical tensions. The nation is projected to surpass Japan in gross output, becoming the fourth-largest economy in the world during CY 2025.

Headline CPI inflation for the FY2024-25 averaged at 4.6%, remaining within the RBIs tolerable band of 2-6%. Although economic growth moderated in FY25, the RBI maintained repo rates for three quarters, aiming to align Consumer Price Index (CPI) inflation with its target. With easing inflationary pressures, the Central Bank reduced the repo rate from 6.5% to 5.5% in three cuts since February 2025, easing liquidity constraints. This accommodative stance aims to stimulate domestic demand and promote private sector investment. However, the RBI has recently shifted to a neutral stance, carefully monitoring geo-economic risks. Other liquidity infusion measure included OMO purchase auctions of ^1,50,000 crore and USD-INR buy-sell swap auction of USD 10 billion.4 Total value of bank notes in circulation stood at ^37,02,342 crores as on 4th April, 2025.5

Outlook

Despite global headwinds, the way forward remains optimistic, supported by ongoing domestic and foreign investments, robust manufacturing growth and improvements in trade and financial services. The accelerated expansion of Tier III and IV cities is expected to propel further demand, with business projections and consumer confidence predicted to maintain momentum.

Additionally, the income tax reliefs announced in the Union Budget for salaried individuals, and the expected implementation of the Eighth Pay Commission are expected to enhance liquidity in the hands of consumers.

Despite potential geopolitical and economic risks, the Indian economy is predicted to sustain growth with strengthened fundamentals, continued private and public investment, global disinflationary momentum and a stable policy framework.

Industry Overview7

Cash management services comprise a comprehensive suite of solutions designed to streamline physical cash handling to enable organisations to optimise their cash flow and enhance their liquidity. These services encompass cash collection, processing, reconciliation, secured transportation that enable more effective financial resource management.

The global cash management services market has experienced substantial growth, with market size is expected to reach approximately $4.5 billion in CY 2025. This reflects the increasing demand for sophisticated financial management tools, as businesses seek to enable secure and timely deposit of cash collections, thereby supporting customer liquidity and maintain a competitive edge in an evolving economic landscape.

Cash management systems are becoming more sophisticated, integrating advanced technologies such as artificial intelligence, machine learning and cloud-based solutions. These technological advancements enable real-time cash flow data access, seamless connectivity with existing Enterprise Resource Planning (ERP) systems and empowering organisations to make more strategic and data-driven decisions. Moving forward, the market is projected to witness a Compound Annual Growth Rate (CAGR) of 9%, reaching $10.7 billion by 2035.

Opportunities and Threats

Opportunities Technological Advancements

The integration of Artificial Intelligence (AI) in cash optimisation represents a significant opportunity. These technologies allow organisations to make informed decisions about cash demand, distribution, replenishment, storage and security, elevating the effectiveness of physical cash handling operations.

Growth in Emerging Markets

Regions such as Asia-Pacific, Latin America and Africa offer substantial growth potential due to their continued reliance on cash transactions. These markets require robust cash-intransit services, automated teller machine replenishment and end-to-end cash logistics solutions. Additionally, the spread of digital transformation across industries create additional opportunities for integrated treasury platforms that unify cash management with broader financial operations.

Challenges Cybersecurity Threats

As digital cash management platforms become more prevalent, cybersecurity risks represent one of the most pressing concerns. The risk of data breaches, fraudulent activities and hacking attempts necessitate the implementation of advanced encryption technologies and comprehensive security frameworks. Financial institutions are particularly vulnerable as they transition to automated treasury management systems.

Regulatory Compliance

Compliance with increasingly stringent regulatory frameworks poses a major challenge. Global financial authorities continue to introduce complex requirements related to anti-money laundering, Know-Your-Customer (KYC) processes and financial transaction monitoring. Adhering to evolving mandates from regulatory authorities is both operationally demanding and costly for service providers.

Rise of Digital Payments

The shift toward digital payments and cashless economies poses a fundamental challenge to traditional cash management services. As mobile wallets, blockchain-based transactions and digital payment systems gain adoption, the reliance on physical cash declines, potentially reducing demand for traditional cash handling, storage and armoured transportation services.

Company Overview

Radiant Cash Management Services is an integrated cash logistics player with pan India presence, including a strong presence in Tier 2 and Tier 3 locations. The Company offers a comprehensive suite of cash management services, ranging from secured cash pickup and delivery, network currency management, cash-in-transit solutions and efficient cash processing. Its operations pan across 28 states and eight union territories.

The Company, has a subsidiary Aceware Fintech Services Pvt. Ltd. (RadiantAcemoney), acquired as part of the Companys strategic foray into the digital payments ecosystem. RadiantAcemoney operates as a Business Correspondent (BC) and Technology Service Provider (TSP), offering a wide array of financial inclusion services such as Aadhaar-enabled Payment Systems (AePS), Domestic Money Transfers (DMT), Micro ATM and utility payments. RadiantAcemoney recently obtained Payment Card Industry Data Security Standard (PCI DSS) certification, reflecting the effectiveness of its data protection framework and ensuring highest level of security for payment transactions.

Key Highlights

In FY25, the Company added 86 new clients and 456 new end customers. It also increased retail touch points coverage by 8,048 (+11%), bringing the total to 77,982 points. The Companys operations span across 14,000+ pin codes in India.

Total cash movement for FY25 reached ^1.68 trillion, marking a 0.5% year-on-year increase. While the e-commerce logistics and NBFC segment of the BFSI sector saw a contraction, which was offset by healthy growth in organised retail and other segments.

Segment-wise Performance

The Company primarily operates in one business segment - Cash Management Services. Within this, it offers a range of specialised services as outlined below.

Cash Pick-Up and Delivery

The Company facilitates the collection of cash from end-user outlet on a daily basis or upon request and deposits it into the clients bank account. It also selectively delivers cash to end-user outlets based on request from banks. During FY25, the segment accounted for 60.6% of the Companys revenue.

Network Currency Management

The Company provides value added services in the form of cash deposits in Radiants bank account in locations where client does not have a bank branch and subsequently transfers funds electronically to the clients bank account. As of FY25, this segment accounted for 20.4% of revenue.

Cash Processing

The Company facilitates counting and verification of cash, upon the end-users request, at the time of pick-up (as against sealed bag pick-up) for an additional fee. During the year, cash processing accounted for 5.2% of revenue.

Cash Van Operations

The Company operates a fleet of armoured vans, each staffed with a driver, armed guards and a cash custodian. These vehicles are leased, primarily to banks, for the secure transportation of cash between branches and vaults, on both short- and long-term basis. During the year, this segment accounted for 11.1% of revenue.

Others

Other segments include Man Behind Counter, providing trained manpower at end user location for handling large volumes of cash in high footfall outlets and vault operations where banks and others rent the vaults for storing of cash or valuables. This segment accounted for 2.7% of revenue during the year.

Growth Strategies

In FY25, Radiant Cash Management Services Limited implemented various strategic initiatives aimed at driving sustainable and diversified growth in its business verticals. The Company posted stable financial performance against tough macroeconomic backdrop and continues to focus on the following key drivers of growth:

Growth of Direct Business

Revenue from direct customers improved significantly, now accounting for 15% of stand-alone revenues (from 5.2% in FY24). Radiant is focusing on underserved end customers of nationalised banks to grow this segment, leveraging the strong market opportunity where almost 57% of the nationalised banking space has not yet outsourced cash management services.

Development of Cash Van Operations

This business segment exhibited strong growth of 40% year-on- year and is expected to continue to make valuable contributions to the Companys profitability and scale of operations. This segment offers vast market opportunity for expansion.

Fintech-driven Growth through RadiantAcemoney

Radiants fintech unit, RadiantAcemoney, achieved swift scale- up with revenues of INR 240.68 million, up from INR 34.8 million during the previous year and is expected to scale up further substantially in the future. RadiantAcemoney is expanding its presence in low-penetration rural geographies with diversified products such as AEPS, DMT and micro-insurance. The subsidiary handled transaction volumes of over ^ 586 crores while registering healthy EBITDA margins of close to 20%.

Strategic Focus on Radiant Valuable Logistics (RVL)

The Company continues investing in infrastructure development and relationship building for its valuables logistics segment with a view to breaking even in near future. With more than 135,000 registered jewellers in India but existing market players serving just 20,000 to 25,000 jewellers, RVL has got the potential of contributing higher share to total revenue in future.

Geographical Penetration and Network Expansion

With operations in more than 77,900 touch points spread over 14,000 pincodes with over 8,900 locations, the Company concentrates on intensifying service delivery in current points.

Across these, 62% of revenues is derived from tier 3+ cities, highlighting Radiants ability to tap into its broad geographic reach while maximising service quality and market coverage.

Risk Mitigation

The Company employs a robust risk management framework combining human expertise and technological automation, including API integration, to ensure real-time tracking and issue resolution. A defined escalation framework ensures senior staff are promptly deputed for on-site incident resolution.

Periodic audits and updated risk mitigation measures ensure alignment with the evolving trends. The Companys hiring policy involves stringent background verification which is followed by police verification. As of FY25, the Company has employed 97 risk managers and 74 supervisors, majority of which include retired junior commissioned officers from the armed forces.

Risk Mitigation Strategies

Risk Impact Mitigation Strategy

Operational Risk

The Companys operating environment requires it to maintain a robust risk management framework to address security-related threats. The Company minimises the risk of theft, loss and operational disruptions by implementing strict security protocols, using advanced technology and following well-established processes. Regular audits by banks ensure compliance with business continuity and operational standards. A nationwide network of 97 risk managers and 64 supervisors, including former military personnel, ensures quick and effective incident response.

Cybersecurity Risk

Given the sensitive nature of its operations, the Company is vulnerable to cyber-attacks, data breaches and fraudulent practices. The Company has taken comprehensive measures to guard against cybersecurity threats including deployment of advanced cybersecurity infrastructure. Use of strong firewalls, encryption protocols and intrusion detection systems provide additional support. Additionally, the Company regularly monitors and upgrades the system to defend against emerging cyber risks.

Digital Payment Disruption

The rapidly growing digital payment infrastructure in India has impacted the share of cash in the total payment. Digital payment adoption poses challenge to the Company, with its main business being cash management. The Companys business is strongly focused towards rural geographies, which provide large headroom for growth with cash in circulation continuing to remain high. Further, the launch of Radiant Insta Credit (RIC) and the acquisition of Radiant Acemoney allows the company to leverage the digital payment ecosystem and expand its market for cash management services

Regulatory Risk

Regulatory changes related to financial or monetary operations can impact the Companys compliance obligations and increase operational costs. The Company has established a dedicated compliance team that keeps abreast of the ongoing regulatory developments. The Company conducts periodic audits to identify and address potential non-compliance issues. Additionally, the Company consults legal experts and consultants to ensure compliance and conducts regular training sessions to educate employees on legal and ethical practices.

Macroeconomic Risk

The Companys business can be impacted by macroeconomic disruptions. Inflation and tax regulations also play a key role in the movement of cash in the economy. The Company caters to a diverse portfolio of clients across various industries and sectors reducing its dependency on any single client or industry, thus minimising the effects of macroeconomic disruptions.
Competitive Risk The Companys competitive edge lies in its ability to provide a wide range of innovative solutions, advanced technology platforms and customised service packages. The Company is focusing on direct clients from the underserved population. The launch of Radiant Insta Credit (RIC), coupled with the acquisition of Radiant Acemoney, allows the Company to leverage the digital payment ecosystem while targeting untapped markets for cash management services.

Risk Management

The Risk Management Committee of the Board oversees the risk management policy implementation and assesses the risk management systems effectiveness. The Company prioritises operational risk management in order to ensure the security and reliability of its cash logistics business. Through the combination of human monitoring with technology-based solutions, the Company minimises risks. Security is further enhanced by periodic audits, real-time monitoring and an exclusive risk management team, consisting of former armed forces officers.

Internal Financial Control Systems and Adequacy

The Company has effective internal financial control systems in place that are appropriate to its size and nature of operations. These controls are intended to assist in ensuring that financial and operational information is recorded correctly and in a reliable way and that the Company complies with all applicable laws and regulations. They also assist in safeguarding the Companys assets against misuse, ensuring that transactions are appropriately authorised and corporate policies are adhered to.

To oversee these controls, the Company has engaged the services of Menon & Pai, Chartered Accountants, to carry out internal audits. These internal audits are carried out as per an Internal Audit plan which is reviewed and approved by the Audit Committee on a yearly basis. The Audit Committee also reviews the Internal Audit report quarterly.

M/s ASA & Associated LLP, Chartered Accountants, are the Statutory Auditors of the Company. They have audited the financial statements presented in this annual report and have issued a report on the internal control over financial reporting of the Company as per section 143 of the Companies Act, 2013.

Overall, the current system of internal controls and checks is comprehensive and provides management with a reasonable level of assurance.

Financial Performance

During FY25, on a consolidated basis the total revenue was ^4,335 million and PAT was ^471 million during the year. Consolidated EBITDA margins improved marginally to 17.8% from 17.5%. The consolidated EBITDA margins showed marginal improvement largely on the back of cost control measures taken by the Company, reduced losses from RVL and a significant turnaround in the performance of Radiant Acemoney. Consolidated PAT Margin stood at 10.9% in FY25.The Company sustained lowest cash losses in the industry while demonstrating industry best ROCE and ROE at 17.1% and 17.2% respectively.

Key Financial Metrics (Standalone)

Metric FY24 FY25 % Change
Revenues (^ mn) 3,902.67 4115.10 5.4
EBITDA (^ mn) 691.19 727.63 5.3
PAT (^ mn) 454.41 456.69 0.5
RoCE (%) 22.1 17.1 (22.7)
RoE (%) 17.9 17.2 (5.2)

Summary of Operating Results (Standalone)

Particulars FY24 FY25
Revenue from Operations (^ mn) 3,845.42 4,050.91
Other Income (^ mn) 57.25 64.19
Total Income (^ mn) 3,902.67 4,115.10
Total Expenditure (^ mn) 3,211.48 3,387.47
Profit Before Interest, Depreciation And Tax (PBIDT) (^ mn) 691.19 727.63
Finance Cost (^ mn) 12.08 21.44
Depreciation/Amortisation (^ mn) 61.44 84.99
Profit Before Tax (PBT) (^ mn) 617.67 621.20
Provision for Tax (^ mn) 163.26 164.51
Profit After Tax (PAT) (^ mn) 454.41 456.69

Key Financial Ratios

Key Ratios Unit of Measurement Previous Year 2023-24 Current Year 2024-25 Significant Change (>25%) Detailed Explanation for Significant Change
Debtors Turnover Times 5.06 5.21 2.96% NA
Inventory Turnover NA NA NA NA NA
Interest Coverage Ratio Times 52.13 29.97 43% The Earnings before Interest and Tax has increased only by 2%, whereas the finance costs has increased by 77%. Hence there is a significant variation in Interest Coverage Ratio
Current Ratio Times 4.99 2.74 (45.09) Current assets has increased by 30.1%, whereas current liabilities has increased by 136.7%. during the year. Hence there is steep reduction in the current ratio as of end March 2025.
Debt Equity Ratio Times 0.13 0.35 169.23 Borrowings (including lease liabilities) has increased from Rs. 325.42 Mn as of 31/03/2024 to Rs. 963.42 Mn as of 31/03/2025 indicating an increase of 2.96 times. There is also increase in Shareholders Fund by Rs. 191.27 Mn. Hence Debt equity ratio has increased from 0.13 to 0.35 in FY 2024-25
Operating Profit Margin (EBITDA/Revenue) % 17.7% 17.7% No change NA
Net Profit Margin % 11.6% 11.1% (5)% NA

Details of Change in Networth

Details of any change in Return on Net Worth as compared to the immediately previous financial year, along with a detailed explanation thereof:

# Return on networth has been calculated based on the average networth during the year.

The Profit After Tax (PAT) for the standalone business increased only by ^ 2.28 million while average Net worth increased by ^214.51 million and hence there is a marginal reduction in return on networth.

Disclosure of Accounting Treatment

The Financial Statements for FY25 have been prepared by applicable Indian Accounting Standards (IND AS) as prescribed under Section 133 of the Companies Act, 2013, read with Companies (Indian Accounting Standard) rules as amended from time to time.

Technological Capabilities

Technological Innovation

The Companys technological advancements enhance operational efficiency in a high-fidelity business environment, allowing clients to focus on their core competence without the need for significant investments in infrastructure, digitisation of processes and platform upgrades enhance partner engagement and experience.

Reinforced Security

The Company has implemented a robust, multi-layered security framework across its technology infrastructure to safeguard operations and customer data. Key measures include Centralized Identity & Access Management, End-to-End Encryption, Network Security Controls, Real-Time Threat Detection, Comprehensive Access Governance and Periodic Security Assessments.

Real-Time Data Tracking

Clients have access to real-time data through a dedicated client view application, offering transparency and tracking of their pick-up points.

Mobile Applications

Radmus App and Radiant Sandesh App facilitates end-to-end reconciliation and also provides for QR code-based onboarding and transactions for the clients. The Radiant Insta Credit App (RIC) has undergone several updates for a seamless, user-friendly platform, offering instant credit services and enabling simple and accessible cash collection and deposit processes. The RIC App now supports Multiple user access under single customer registration, Chain customer onboarding, State-wise GST configurations and Payment integrations

API Integration

The Company has implemented API integration with select clients ERP software, enabling real-time cash tracking by both clients and end-users.

Human Resource

Radiant Cash Management Services recognises the role of its human capital in driving success. The Company remains committed to promoting a capable, diverse and future-ready workforce. During the year, the Company implemented robust employee development initiatives, including, 28 training programmes on varying topics that benefitted 30% of employees. These programmes covered a wide range of topics such as recruitment process enhancement, leadership training and regulatory compliance. The Company continues to maintain a balanced and diverse workforce, drawing from a variety of backgrounds and experiences to strengthen operational capabilities across Board.

As of 31st March, 2025, the Companys total employee strength stood at 2,546.

Employee Distribution

The Employee distribution data as on the date of report is as given below:

Category Average Age
Board of Directors 60**
Senior Management (SMP and KMP) 55
Staff 34

**Includes Managing director and Whole time Director who are also KMPS

Corporate Social Responsibility (CSR)

Ashraya Project

The Ashraya Project is one of RCMs flagship initiatives, launched in 2011. The project aims to provide free noon meals every day to the elderly and destitute. As on March 31, 2025, 1622 elderly poor destitute persons (including caretakers) were the beneficiaries, spread across 34 villages in Chengalpattu and Thiruvallur Districts Over the years, it has positively impacted numerous communities with consistency and compassion.

Chennai Roti Bank

RCMS is also associated with Chennai Roti Bank who are engaged in providing nutritious meal at the end of each day to vulnerable groups in Chennai, including children, the homeless, the elderly, the sick and those with mental illness.

Outlook

With a robust pan-India presence, the Company is well-positioned to capitalise on the significant growth potential in rural and semi-urban areas. The Company remains focused on expanding its core cash management operations, while pursuing emerging opportunities in valuables logistics, and facilitating digital banking solutions through its fintech subsidiary Radiant Acemoney.

Radiants fintech subsidiary, Radiant Acemoney, has made notable progress in enabling financial inclusion through technology. During FY25, over 64,000 Point-of-Sale (POS) terminals and QR-based payment collection devices were deployed, laying the groundwork for a comprehensive digital banking platform. This platform will support services such as money transfers, cash withdrawals and deposits, bill payments, mobile recharges, and account opening. The Company has set an ambitious target for the current year and is now focused on enhancing transaction volumes per outlet to drive sustainable growth. Additionally, the Company aims to explore high value logistics, including the jewellery segment, which poses long-term growth opportunities. With a resilient business model, strong operational risk controls, and a growing suite of value-added services, the Company remains confident in its ability to deliver consistent growth and stakeholder value over the medium to long term.

Cautionary Statement

Statements in this management discussion and analysis describing the Companys objectives, projections, estimates and expectations may be forward-looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Other factors that could affect the Companys operations include but are not limited to, changes in the political and economic environment in India or abroad, tax laws, litigation, labour relations, foreign currency fluctuations, etc.

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