Sharper focus on Logistics, HCM & Global Payroll paying off
Chennai, India - November 2, 2017: Further to the board meeting on November 1, 2017, Ramco Systems (BSE - 532370, NSE - RAMCOSYS); a global enterprise software company focusing on enterprise cloud platform, products and services, announced the results for the second quarter of financial year 2017-18.
For the quarter ended Sep 30, 2017 (Q2: 2017-18), global consolidated income of Ramco Systems Limited stood at USD 18.34m (Rs 117.21 cr) as compared to USD 17.55 m (Rs 112.81 cr), in the previous quarter. The net profit after tax for the quarter stood at USD 1.01mn (Rs 6.53cr) as compared to a loss of USD 0.47mn (Rs 3.05cr) in the previous quarter.
- Revenue grows 5% QoQ in Q2
- Average deal size continues to rise with 11 ‘half-a-million dollar plus’ deals including a $5mn+ deal getting added in Q2
- Unexecuted order book grows 6% QoQ to 134 mn; Q2 order bookings stood at USD 25.3 mn
- While percentage of Cloud bookings came down QoQ, it is still at 57% on a YTD basis
- Revenue from markets outside India stood at 76%
- APAC had a stellar performance on both order booking and revenues
- Market penetration continues to increase with the setting up of subsidiaries in Vietnam and Indonesia. Ramco in Asia now has offices in 7 countries including Singapore, China, Malaysia, Hong Kong, and Philippines
- New Zealand and Europe have shown promise with orders getting booked for HCM
- Focus offerings contribute 67% of overall order booking
- Ramco HCM clocks 49% increase in QoQ order booking adding 12 new clients, including 3 Fortune 500 companies
- The largest order in the quarter was booked in Logistics business
- Thrust on Innovation drives Ramco Aviation to deliver Blockchain use case in Aviation and Logistics
- Ramco Aviation launches ‘Line Anywhere’ for use by Mechanics at Airport Apron (Tarmac). Ramco also launched ‘Part Anywhere’, an hyperconnected B2B ecosystem to provide real time visibility of parts stock and price with supplier/OEM globally using REST APIs, all on the transaction screen
- After entering Gartner Magic Quadrant for Cloud Financials, Ramco becomes the only Asia based vendor to feature in both Gartner’s Magic Quadrant for Cloud HCM and Forrester Wave™ for SaaS HRMS - a testament of the strong headway Ramco HCM is making in the Global market.
Commenting on the results, P.R. Venketrama Raja, Chairman, Ramco Systems, said, “The decision to focus on few key offerings was a tough one given that we had pockets of knowledge and experience across multiple segments. But, to stay focused and deliver outcomes, we decided to place our energies in a few select offerings which showed good market opportunity and strong capability. This strategic move has been well received with our overall bookings moving upwards, especially in our identified strength areas. This is an exciting phase for us.”
Commenting on the performance, Virender Aggarwal, CEO, Ramco Systems, said, “From Blockchain to Rest APIs; Chatbots to HoloLens, we have umpteen innovations that address the business pain points across HR, Logistics and Aviation segments. We take pride in the fact that these innovations are getting noticed and attracting global organizations to engage with us. It is important for us to remain ahead of the technical curve to enable digital transformation of our clients.”
About Ramco Systems:
Ramco is a fast-growing enterprise software player disrupting the market with its multi-tenant cloud and mobile-based enterprise software in HCM and Global Payroll, ERP and M&E MRO for Aviation. Part of the USD 1 billion Ramco Group, Ramco Systems focuses on Innovation and Culture to differentiate itself in the marketplace. On Innovation front, Ramco has been focusing on moving towards Cognitive and Robotic ERP with features such as Bot it - which allows users to complete transaction using natural conversations; Mail It - transact with the application by just sending an email; HUB It - a one screen does it all concept built to address all activities of a user; Thumb It - mobility where the system presents users with option to choose rather than type values and Prompt It - a cognitive ability which will let the system complete the transaction and prompts the user for approval.
With 1600+ employees spread across 24 offices, globally, Ramco follows a flat and open culture where employees are encouraged to share knowledge and grow. No Hierarchies, Cabin-less Offices, Respect work and not titles, among others are what makes the team say, Thank God it’s Monday!
Only APAC vendor to be positioned in Gartner Magic Quadrant for Cloud Financials & Cloud HCM Suites; Enters as a Contender in The Forrester Wave(TM): SaaS Human Resource Management Systems, Q3 2017; Recognized as a ‘Highly Recommended’ Payroll Software Supplier of the Year 2017 by Global Payroll Association; Positioned as ‘Achiever’ in Everest Group's Multi-Country Payroll Platform Assessment
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Certain statements in this release concerning our future growth prospects are forward looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT business including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, withdrawal of governmental fiscal incentives, political instability, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Ramco Systems may, from time to time, make additional written and oral forward-looking statements, including statements contained in our reports to shareholders. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.