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Ramco Systems topline grows 7% QoQ on USD, 8.3% in constant currency; Q3 YTD profit grows 225% on USD

Chennai - February 9, 2016

Chennai, India – February 9, 2016: Ramco Systems (BSE - 532370, NSE – RAMCOSYS); a global enterprise software company focusing on enterprise cloud platform, products and services, today announced the results for the third quarter of 2015-16.

For the quarter ended December 31, 2015 (Q3:15-16), global consolidated revenue of Ramco Systems Limited grew by 7% from USD 16.52m (Rs.106 cr) to USD 17.64m (Rs 116 cr). The growth was 8.3% in constant currency basis, as measured by applying the exchange rates of the corresponding periods of the last financial year. The net profit after tax for the quarter, amounted to USD 1.80m (Rs 11.7cr) as compared to USD 1.54m (Rs 9.9cr) the previous quarter.

Highlights:

  • Revenue from markets outside India stood at 76% as compared to 71% in Q2
  • Q3 YTD profit after tax was USD 4.48 mn (28.8 cr), registering a growth of 225% YoY
  • ASEAN and Australia led the growth with healthy order book and revenue share
  • Strategy to focus on niche vertical and strengthen overall offering begins to pay off – Ramco Logistics Software gains global clientele;
  • Ramco HCM continues its growth momentum clocking 2 new wins every week; Ramco’s Global Payroll with Time & Attendance has been gaining traction with its statutory coverage of 40+ countries which extends to 108 countries through partners
    • Wins CIO Choice Honor & Recognition 2016 award for HR & Global Payroll in India. Chosen by CIOs, Vendors were ranked on performance, customer satisfaction and continued customer service.
    • Wins HR Vendor of the Year recognition in Malaysia, Singapore and Hong Kong for Best HR Management, Talent Management and Payroll Software
  • Ramco Aviation goes mobile with AnywhereApps - aims to address critical Aviation users on the move
  • Reaffirms commitment to Channel strategy. Buys 18.93% stake in cloud startup SmartMegh (a boutique cloud firm with operations in India, ASEAN and Middle East) to further cement relationship

Commenting on the results, P.R. Venketrama Raja, Vice Chairman and Managing Director, Ramco Systems, said, “It is very encouraging to see an Indian product firm gaining wide acceptance globally from notable brands. We clocked 76% of the revenue from markets outside India. This has been possible because of our steadfast focus on innovation and culture. The investment in hiring the best talent and giving them a platform to build future technologies has helped carve a niche position for Ramco in the Global IT space. We will continue to invest in these two avenues as they are the pillars on which our success resides.”

Ramco has been investing in transforming the organization to attract and retain the brightest of the talent. This includes, designing workspaces which foster innovation, promoting a flat hierarchy, to focusing on building a healthy work atmosphere from offering subsidized food and snacks to laundry services. Some of the new initiatives launched include offering Cross-fit training to backrub at the desk for employees. The company also initiated an Ideation platform titled – GreyMatters to identify and nurture the big ideas at work.

On the sidelines of announcing the Q3 results, the company announced the roll out of a niche ERP offering for Logistics - Ramco Logistics Software, an integrated Cloud-based platform for Third Party Logistics, Freight Forwarders, and Parcel/ Courier service providers.

Commenting on the Logistics focus, Virender Aggarwal, CEO – Ramco Systems, said, “ERP is a cluttered market with limited room for differentiation. While Cloud and Mobility gave us a lead, we wanted to find a niche and strengthen our portfolio. The growth of e-Commerce and Uberization of the Logistics sector have triggered a renewed interest for innovative technology offerings in the industry. Ramco is well positioned to address this market need with an end-to-end integrated and cloud based ERP for Logistics. We are glad the initial uptake has been promising with key strategic wins in ASEAN, Australia and Middle East.”

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