Ramco Systems invests for growth
Ramco Systems announced the results of the third quarter of the financial year 2021-2022.
Chennai, India – February 12, 2022: Ramco Systems Ltd., (BSE - 532370, NSE - RAMCOSYS); a global enterprise software company focusing on Next Generation Cloud Enterprise Applications, today announced the results for the third quarter of FY 2021-22.
For the quarter ended December 31, 2021, global consolidated income of Ramco Systems Limited stood at USD 17.22m (Rs. 127.6cr). The net loss after tax for the quarter amounted to USD 3.41m (Rs. 25.2cr). The cash flow continues to be good.
The pandemic has posed some challenges in the business growth, especially in Asia, which is a high touch territory and a major contributor to our business. Under the influence of continued lockdown, the region saw a considerable slowdown over the last few quarters. This has led to a slow momentum in order booking. Moreover, closure of few large deals has been postponed. We continue to be confident in securing those businesses. With the easing of lockdown across geographies and travel restrictions getting relaxed, we now see a growth in engagement levels.
Our Payroll platform which is capable of processing payroll for over 60 countries, is getting enriched by adding more countries to the platform. Also, our strategy is to expand the reach, by partnering with in-country-providers in countries where we do not yet have statutories. With increased automation, customer deliveries are becoming faster, leading to quicker go-lives. Partnership with major Human Capital Management platform vendors to provide our Payroll solution to their customers is starting to yield results, with good additions to the pipeline.
Our Aviation and Defense offering continues to gain attraction across the globe. In order to realise the potential for the Aviation product in the defense sector, a wholly owned subsidiary to cater to the defense sector has been set up in the United States.
The Enterprise Software business continues to focus on niche industry verticals, where we have proven capabilities like asset and service intensive industries. We have successfully demonstrated our ability to deliver complete digital transformation to large enterprises in these areas.
Our Logistics product is attaining maturity and our current focus is to build our capability to handle complex implementations, to prepare for scaling up this business. Given the importance of the logistics sector and the strength of our offering, we see very good potential for growth for this unique product line.
Our products are built on a robust integrated technology platform and we are now investing in upgrading the platform by incorporating the latest concepts and technologies. This will completely modernise our offerings, with minimal disturbance to the IP built over the decades.
We lay great emphasis on the importance of human resources, as we restructure to scale up our business. High quality cross functional teams across the businesses and geographies are being formed. To facilitate this, we are embarking on a complete restructuring of our incentive and compensation structure. This is being rolled out over the coming quarters.
Lastly, the new leadership team has stabilised and is focusing well on consolidation and growth.
With all these investments and new structure in place, together with improving global business environment, the foundation is being laid for growth in coming years.
Business Highlights for the Quarter:
- Quarterly order bookings stood at USD 13.55m
- 2 ‘Million-Dollar-Plus’ deals signed
- Ramco Australia Payroll compliant with Single Touch Payroll Expanded Data (STP Phase 2)
- Focus on Digital Transformation for large conglomerates
- Virtual implementations become the 'new normal' resulting in quicker go-lives, globally
Commenting on the business focus, P.R. Venketrama Raja, Chairman, Ramco Systems, said, “At Ramco we are now getting ready for the next phase of our growth. With a promising leadership team, our focus will be attracting and retaining the brightest minds in the industry. Our pipeline continues to be strong and growing. I am confident that our focus on operational excellence will drive the business forward and we will continue to deliver sustainable value to our clients. We look forward to capitalizing on the opportunities ahead.”