Ramco reports breakeven, Global Q1 Revenues up 13%
Posted August 4, 2007on:
Bit old news but worth mentioning..
Driven by continued customer confidence, Ramco Systems has successfully moved into the black and reported a breakeven situation and a global revenue growth of 13% for the first quarter of 2007-08.
The global Q1 revenues of Ramco Systems Ltd, including revenues from subsidiaries in USA, Switzerland, Singapore, Malaysia, South Africa and India stood at USD 17.51 million as against USD 15.47 million in the first quarter of the previous fiscal. The company has turned around and posted a net profit of USD 0.07 m compared to a net loss of USD (1.24million) during the corresponding period last year.
Software revenues for the quarter grew by 21% from USD 9.58 Million in Q1 2006-07 to USD 11.60 Million for Q1 2007-08. The growth in the software solutions business was spearheaded by India and the US which clocked impressive growth rates of 64% & 40% respectively.
Global software and services revenue contribution was led by USA and India with a share of 40% and 31% respectively. Among the business lines, the software solutions business contributed 82%, while the IT Services practice accounted for the rest of the global Q1 revenues.
For India, the total quarterly income reported was Rs.28.38 crores. The net loss has been significantly cut to Rs.2.96 crores – a 56% reduction compared to the loss in the corresponding quarter of the last fiscal.
During the quarter, the company witnessed significant traction in Aviation and the pipeline is very healthy. The company is aggressively moving up the business value chain and has formed a dedicated Strategic Consulting Group. This is expected to open up significant opportunities for Ramco in its key markets.
Ramco ERP OnDemand, Ramco’s software offering on a monthly subscription model is gaining wider acceptance and the user base has been steadily increasing.
Commenting on the results, Mr. P.R.Venketrama Raja, Vice Chairman, Managing Director & CEO said, "Ramco’s investments in innovative business solutions, targeted marketing and key talent combined with strict cost-control has enabled the company to turn-around and achieve break-even. We hope to build on these initiatives and achieve profitable growth in the coming quarters”.