Ramco Systems , a leading enterprise software provider, has reported a significant turnaround in its financial performance for the first quarter, marking a substantial improvement from the previous year.

Profit Surge

The company posted a net profit of ₹9.4 crore, a remarkable recovery from a loss of ₹19.7 crore in the same period last year. This impressive shift from red to black underscores the effectiveness of Ramco Systems' strategic initiatives and operational improvements.

Revenue Growth

Ramco Systems demonstrated solid top-line growth, with revenue increasing to ₹161.00 crore from ₹136.00 crore year-over-year. This 18.38% rise in revenue reflects the company's expanding market presence and the growing demand for its software solutions.

EBITDA Performance

One of the most striking aspects of Ramco Systems' quarterly results was the substantial improvement in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The company's EBITDA surged to ₹29.00 crore, a significant jump from ₹3.44 crore in the previous year.

Margin Expansion

The EBITDA margin witnessed a remarkable expansion, reaching 18.01% compared to 2.51% in the same quarter of the previous year. This substantial margin improvement of 15.50 percentage points indicates enhanced operational efficiency and cost management.

Financial Highlights

Ramco Systems' strong performance across key financial metrics demonstrates the company's resilience and ability to navigate challenges effectively. The significant improvements in profitability and operational efficiency position the company well for sustained growth in the coming quarters.

Ramco Systems , a global enterprise software company, has reported a strong start to the fiscal year with a 15% year-over-year revenue growth in the first quarter. The company's consolidated income stood at USD 19.36 million (Rs 164.8 crore) for the quarter ended June 30.

Financial Highlights

• Revenue Growth: Consolidated income increased by 15% year-over-year to USD 19.36 million.
• Net Profit: The company reported a net profit after tax of USD 0.11 million (Rs 0.9 crore).
• EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached USD 3.83 million.

Operational Performance

Ramco Systems demonstrated strong operational performance in Q1:

• Order Bookings: Quarterly order bookings stood at USD 15.00 million, marking a significant 36% increase quarter-over-quarter.
• Recurring Revenue: The company's recurring revenue continued its upward trend, reaching USD 11.08 million, including backlog billing.
• Unexecuted Order Book: With an unexecuted order book of USD 168.55 million, Ramco maintains a stable base for future execution and revenue realization.

Business Highlights

The company secured several notable client wins across various sectors:

• Signed two "Million-Dollar plus" deals
• Onboarded a multinational technology company for payroll operations in Australia and New Zealand
• Secured a contract with a multinational online food ordering and delivery platform for payroll services across 8 countries in Asia
• Chosen by a leading aircraft engine maintenance provider for streamlining operations with Ramco Aviation Software
• Selected by a global logistics company for Fleet Management and Enterprise Asset Management transformation in the Asia-Pacific region

Strategic Implementations

Ramco Systems successfully implemented its payroll solution at Air Niugini, Papua New Guinea's national airline, enabling payroll transformation for over 2,000 employees across four countries.

Financial Discipline

The company maintained its zero-borrowing position, underscoring its commitment to financial discipline and operational self-sufficiency.

Management Commentary

Abinav Raja, Managing Director of Ramco Systems, commented on the results: "Our approach to transformation is rooted in pragmatism and purpose. By embedding AI into core workflows, we are already seeing meaningful improvements in productivity and responsiveness. In parallel, our modernization efforts continue to simplify delivery and enhance scalability."

Sandesh Bilagi, COO of Ramco Systems, added: "We are seeing encouraging signs across topline, recurring revenue as well as order booking, which are direct outcomes of improved operational cadence and delivery efficiency. We would now concentrate more on scaling our business and products."

Employee Stock Option Scheme

In a separate announcement, Ramco Systems' Nomination and Remuneration Committee approved the grant of 45,000 stock options under the Employee Stock Options Scheme - 2022 (ESOS 2022) on August 08. The options will vest over a period of 3 years, with 40% vesting at the end of the first year and the remaining vesting quarterly over the next two years.

With these positive results and strategic initiatives, Ramco Systems appears well-positioned for continued growth and expansion in the enterprise software market.