Company Overview
Ramco Systems Limited (referred to as Ramco or we or Our Company) is a dynamic and disruptive enterprise software company. With our world-class SaaS-enabled platform & products, we have been disrupting the market successfully driving innovation and transformation. With over 25 years of relentless innovation, we continue to push boundaries and deliver cutting-edge cloud solutions that drive enterprise excellence.
At the heart of our comprehensive offerings, lies our rich and game-changing IP the Ramco VirtualWorks? platform. This pioneering platform integrates cutting-edge technologies such as AI/ML, and Mobility, thereby enabling transformation and enhancing intelligent process automation and decision-making capabilities. This robust, future-ready foundation is central to our commitment to delivering an easy-to-use, best-in-class enterprise software, with enhanced user experience, scalability and stability. Our solutions are tailored to address the unique complexities of diverse industries. This is while being responsive, adaptive, and geared to maximise business value. Whether streamlining global payroll across 150+ countries, optimising aviation M&E, MRO operations, or enabling frictionless logistics, Ramcos industry centric functionality simplifies the most intricate challenges with ease.
Fuelling our success is a culture deeply rooted in innovation, consistently propelling us ahead of the curve. Our invest-to-win mindset, coupled with a deep understanding of industry nuances, empowers enterprises to achieve transformative growth through seamless tech initiatives. Through our tailored tech initiatives, we empower businesses to excel and evolve in an ever-changing landscape.
With a proven global footprint, domain expertise, and a firm focus on delivering excellence, we are a trusted partner enabling customers to gain a competitive edge. Thereby helping them realise their ambitious business goals in todays dynamic digital era.
Industry Trends and Developments
Today, the business landscape is undergoing a seismic shift. This transformation is driven by cutting-edge technologies such as Artificial Intelligence (AI), Machine Learning (ML), Cloud Computing, and the Internet of Things (IoT). Organisations are embracing these innovations to stay competitive and deliver exceptional value to their customers.
At the forefront of this revolution is the adoption of AI and ML, including Generative AI Gen AI, which enable data-driven insights, automation, and hyper-personalised experiences through real-time analytics and learning systems. By leveraging these technologies, companies can proactively identify and cater to client demands, creating an integrated digital experience that fosters growth and customer satisfaction.
Similarly, Cloud Computing has emerged as a game-changer, offering scalability, cost-efficiency, and agility. The widespread adoption of Software as a Service (SaaS), has empowered organisations to meet critical business requirements, reduce infrastructure costs, and accelerate time-to-market. Complementing this trend is the transformation of Data Analytics which has changed data collection and analysis, providing real-time insights into customer behaviour, operational efficiency, and supply chain management. These insights, coupled with the power of AI and ML, enable informed decision-making, optimising processes and driving innovation across various industries.
As a next-gen enterprise software player, As a next-gen enterprise software player, we at Ramco are well-positioned to drive digital transformation by leveraging our expertise in multi-tenant cloud and mobile-based enterprise software solutions. By embracing AI & ML and Cloud Computing, we create integrated digital experiences, gain a competitive advantage, and redefine how we operate and deliver value. With our focus on innovation and commitment to fostering a culture that differentiates us in the marketplace, we continually strive to deliver cutting-edge solutions and exceptional service that drive our clients success and set new industry standards.
Performance Review
At a global level, economic headwinds continued to pose challenges with organisations delaying decision-making amidst uncertainties. However, Ramco maintained resilience and forward momentum driven by our Companys innovative product portfolio, strategic partnerships, and cost optimisation measures.
Our focused turnaround efforts are beginning to yield results and reflect in our financials. We witnessed a healthy growth in our recurring revenue streams and cloud orders for our subscription-based SaaS solutions. The launch of our revolutionary Ramco Payce payroll platform set new benchmarks for efficiency, positioning us to capitalise on immense growth opportunities with this game-changing product.
A major operational highlight was the implementation of stringent deal review processes and cost-cutting initiatives since the start of the fiscal year. These programmes yielded annualised savings, fortifying our financial health and operational leanness.
On the partnership front, we joined hands with Deloitte and BDO India to offer unified global payroll solutions spanning over 150 countries through our cutting-edge platform Payce combined with their advisory expertise. Our new wholly-owned Qatar subsidiary will drive ERP, HR and payroll transformations for regional businesses and multinationals.
Our product roadmap continues to accelerate with Ramco Payce. It redefines payroll management through swift deployment, rapid processing capabilities and enhanced accuracy. We are also developing specialised solutions to cater to the engine MRO segment.
Moving ahead, we are enthused by the prospects unlocked by our product innovation excellence, strategic tie-ups expanding our global footprint, and a lean cost structure primed to drive profitable growth. We remain committed to empowering our customers with agile and insightful solutions that establish new business models and uncover opportunities amid market dynamics.
Ramco Global Payroll & HR
Payce, our powerful, modern, SaaS-enabled payroll platform leverages cutting-edge technologies like serverless in-memory, AI, ML and analytics. We automate payroll processing, enable payroll outsourcing, and provide self-service tools for employees. Designed as a flexible platform, Payce allows businesses to adapt their payroll processes quickly to workforce changes. The payroll segment generates around 40% of our revenue, and we expect it to drive significant demand over the next couple of years, highlighting its strategic importance for our Company.
Highlights
Inked strategic partnerships with Deloitte Touche
Tohmatsu India LLP and BDO India to redefine the landscape of payroll transformation Signed deal with Shearwater Health to streamline HR and payroll for 4000+ employees Partnered with a global insurance company to streamline multi-country payroll operations Selected by a global automotive parts supplier to manage payroll operations Signed deal with petrochemicals manufacturer to automate payroll processes Bagged Top Vendor for HR & Payroll at Global Enterprise Connect Awards 2023 Recognised as Leader and Star Performer by Everest Groups PEAK Matrix? for APAC
Awarded High Performing Partnership by ISG Paragon Awards ANZ
Won HR Vendors of the Year Awards for Best Payroll Software and Best Payroll Outsourcing Awarded Most Innovative Company of the Year at Asia CEO Awards 2023
Recognised as a Leader in NelsonHalls NEAT Assessment for Payroll
Positioned as a Leader in ISGs maiden Provider Lens for Payroll Solutions & Services
Ramco Aviation
Through our aviation software, we provide clients with innovative maintenance and engineering software solutions tailored to meet the niche demands of the industry. Our offering includes a comprehensive maintenance and engineering (M&E), and maintenance, repair and overhaul (MRO) solution. This is designed to meet both business and regulatory needs. Leveraging cutting-edge technologies like AI & ML, our best-in-class software tackles challenges head-on. Nearly a third of our revenue comes from this segment, where we serve top airlines, third-party MROs, helicopter operators, defence organisations, and urban air mobility companies, globally.
Highlights
Partnered with Skytek to implement Aviation Suite V5.9, automating Skyteks operations Signed a deal with a major aircraft manufacturer to transform maintenance and engineering Bagged order from AIESL to digitally transform MRO and engineering operations
Completed first phase of Aviation M&E MRO Suite V5.9 implementation at GA-ASI, providing end-to-end visibility
Enabled HAS International to streamline CAMO, flight tracking, and Power-by-the-Hour Signed a multi-million-dollar deal with Korean Air to accelerate the tech transformation of its new engine maintenance complex
Ramco Logistics
We provide a comprehensive digital platform tailored to logistics service providers. This end-to-end, cloud-based system offers an integrated business solution that facilitates seamless goods transportation. It automates invoicing processes, enables revenue forecasting, and helps prevent revenue leakage. Thus, ensuring our clients can operate efficiently and in a streamlined manner. Our platform allows logistics companies to optimise their transportation operations through our advanced software capabilities.
Highlights
Enabled a leading freight provider, with a cloud ERP platform for superior user experience, end-to-end visibility, and real-time operational excellence Third-largest retail customer went live in Indonesia in 8 calendar months with TMS & WMS
A large 3PL logistics customer in ANZ reaffirmed its trust in Ramco Logistics. Signed a renewal contract for next 5 years
Ramco Enterprise Resource Planning
Our Enterprise Resource Planning (ERP) Software offers a comprehensive and centralised approach to managing business operations. By hosting all essential functions on a unified cloud platform, we facilitate an overarching view of the entire organisational landscape. Through end-to-end automation and integration of processes across departments, our ERP Software empowers organisations to drive innovation throughout their value chain. This holistic perspective enables businesses to optimise efficiency, minimise costs, and expedite product or service delivery, ultimately enhancing their competitiveness in the market. We take an integrated approach to help companies transform and streamline their operations.
Highlights
Signed a deal with one of Indias leading integrated building materials companies for the ERP system
Ventured into the EV industry segment with a new-age energy generation, storage and processing technology solutions company selecting Ramco to streamline its business operations Selected by a next-generation orthopaedic and spinal implant manufacturing company to automate their business operations and support them in their expansion journey
Witnessed significant traction in the cement manufacturing and discrete manufacturing verticals
Revenues by Geography
Our business team is relentlessly built on the growth momentum to capitalise on the improvement in order booking and generating global revenue. 76% of revenues were driven by business in international markets.
Financial Performance
In accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company is required to give details of significant changes (change of 25% or more as compared to the previous financial year) in sector-specific key financial ratios, as well as any changes in return on net worth. The following have been identified by the Company as key financial ratios, which are tracked only at the consolidated level.
Detailed explanation for significant changes in sector-specific key financial ratios and changes in Return on Net Worth: Return on Net Worth:
The net loss has increased to Rs.2,419.32 Mln from Rs.2,068.40 Mln. (refer PAT analysis given below) while equity attributable to equity holders of the parent has also decreased to Rs.3,113.69 Mln. from Rs.5,331.42 Mln., mainly due to current year loss, resulting in decrease in return on net worth to (77.70)% for the current year from (38.80)% during the previous year .
Operating Profit Margin (OPM): The OPM for the year worked out to (45.17)% as against (42.81)% due to decrease in EBIT compared to the previous year.
Net Profit Margin (NPM): The NPM for the year worked out to (46.01)% as against (42.02)% due to decrease in PAT compared to the previous year.
The decrease in the PAT is analysed below:
Particulars | Rs. Mln. |
Increase in Revenue | 336.08 |
Decrease in Other Income | (14.47) |
Increase in Purchase of Stock in Trade | (18.81) |
Decrease in Employee Cost Benefit | 347.39 |
Increase in Depreciation and Amortisation Expense | (63.92) |
Increase in Provision for Doubtful Debts | (649.72) |
Increase in Other Expenses | (204.87) |
Decrease in EBIT | (268.32) |
Decrease in Finance Costs | 37.38 |
Higher Taxes | (117.62) |
Increase in Share of Profit of an Associate | 0.43 |
Increase in Non-Controlling Interests | (2.79) |
Decrease in PAT Attributable to Shareholders of the Company | (350.92) |
Interest Coverage Ratio
The finance costs have gone down to Rs. 62.93 Mln. during the current year from Rs.99.61 Mln. during the previous year.
(i) The interest on loans and finance charges have decreased to Rs. 8.93 Mln. during the current year compared to Rs.45.78 Mln. during the previous year, on account of decrease in average borrowings.
(ii) The interest on lease liabilities have marginally gone down to Rs. 53.30 Mln. during the current year compared to Rs. 53.83 Mln. during the previous year.
At the same time, the loss before interest and tax has significantly increased to Rs. 2,375.03 Mln. during the current year from Rs. 2,107.14 Mln. during the previous year.
The above had resulted in the deterioration in interest coverage ratio to (38.17) for the current year from (21.15) for the previous year.
Debt-Equity Ratio
The reduction in debt is mainly on account of the repayment of the entire borrowings of Rs.380 Mln., outstanding at the beginning of the year. However, the equity had also reduced correspondingly. Thus the ratio has marginally increased to 0.201 from 0.199.
Current Ratio
The Current Ratio has decreased by 45.65%, i.e., from 1.38 as at the end of the previous year to 0.75 as at the end of the current year. Current assets decreased significantly by 54.32% mainly due to (a) Increase in provision/write off for doubtful receivables/unbilled revenue and (b) Utlisation of the proceeds of preferential issue fully during the year from out of the opening balance, while current liabilities decreased only by 16.54%, on account of repayment of the entire borrowings.
Particulars | As at the End of the Current Year | As at the End of the Previous Year |
Current Assets | ||
Trade Receivables | 952.23 | 1,522.32 |
Other Financial Assets | 488.27 | 1,305.55 |
Other Current Assets | 393.70 | 1,310.39 |
Others | 129.62 | 160.54 |
Total | 1,963.82 | 4,298.80 |
Current Liabilities | ||
Borrowings | - | 380.00 |
Trade Payables | 720.59 | 691.92 |
Lease Liabilities | 136.58 | 134.43 |
Others | 1,745.55 | 1,912.20 |
Total | 2,602.72 | 3,118.55 |
Current Ratio | 0.75 | 1.38 |
Days Sales Outstanding
Days Sales Outstanding has reduced to 52 at the end of current year from 83 at the end of previous year primarly due to increase in provisioning coupled with improvement in collection of Trade receivables.
Challenges
Key Challenges | How Industry Can Tackle It |
Managing Economic Uncertainties | Control costs, increase efficiency, strive for revenue growth |
Adopting Emerging Technologies | Continually innovate, carefully evaluate risks and benefits of AI, ML |
Attracting Top Talent | Offer flexibility, fulfilling roles to meet changing workforce demands |
Environmental Responsibility | Develop well- sustainability defined strategies to address climate change |
Data Privacy and Compliance | Implement strict data governance policies, adhere to regulations (e.g., GDPR) |
Increasing Competition | Differentiate offerings, focus on customer experience, explore new markets |
Rapid Technological Obsolescence | Continuous upskilling of workforce, invest in R&D, embrace agile practices |
Geopolitical Tensions | Maintain business continuity plans, diversify operations geographically |
Outlook
Our payroll platform segment is contributing nearly 40% to our overall revenue. With the introduction of Payce and strategic partnerships it is anticipated to become the primary driver of demand in our order book over the next 1-2 years. This positions our payroll solutions at the forefront of our business growth strategy. We are now targeting an accelerated growth trajectory by securing even larger deals with expanded country coverage and higher headcounts. In the MRO space, we are focusing on the areas of airframe MRO, component MRO, and engine MRO. We expect these three areas to have tremendous potential, and we believe we are in the right place at the right time to seize the emerging opportunities. Our Enterprise Software offerings, particularly our cement ERP solution, deliver great value to customers. This area is one of our key strengths and aligns closely with our larger groups deep expertise in the cement industry. Overall, our strategic investments in product modernisation, technology innovation, and partnership expansion position us favourably to capitalise on the growing demand for enterprise software and services across multiple domains. Thus paving the way for sustainable growth and industry leadership in the years ahead.
Risk Management
Ramcos risk management system identifies and monitors the key risks and their impact on global operations. The Risk Management Committee reviews the risks, their possible impacts, and the mitigation plan. Some of the major risks, their impact, and the mitigation plan include:
Internal Control Systems
The Company has an internal control system, commensurate with the size and nature of its operations, which have been designed to provide reasonable assurance of recording the transactions of its operations in all material aspects and providing reliable financial and operational information, complying with applicable Laws and safeguarding the assets of the Company. The Company constantly reviews its processes and the systems to address the changing regulatory and business environments. The Company uses its own enterprise resource planning system for recording of accounting data and for management information purposes.
The Company had aligned the internal financial control system with the requirement of Companies Act, 2013 (the Act).
The Company has an external audit firm for carrying out the internal audit, based on a plan finalised in consultation with the statutory auditors and approved by the Audit Committee. The Internal Auditors directly report to the Audit Committee. The internal audit reports are submitted/presented in the Audit Committee and discussed. The Audit Committee also obtains the views of the internal and statutory auditors to ascertain the adequacy of internal control systems. The statutory auditors have issued a report on the internal control over financial reporting (as defined in Section 143 of the
Act). The Company had assessed the effectiveness of the internal control over financial reporting (in accordance with
Regulation 17(8) of SEBI LODR) as of March 31, 2024. Based on its evaluation (in accordance with Section 177 of the Act and Regulation 18 of SEBI LODR), our Audit Committee has concluded that, as of March 31, 2024, our internal financial controls were adequate and operating effectively.
Our Client Portfolio
At Ramco, we take pride in our extensive and diverse client portfolio, which spans across various industries and geographies. Our commitment to innovation and excellence has allowed us to secure significant client wins over the past year, further strengthening our market presence.
Forging Strategic Alliances - Strengthening Our Partner Ecosystem
Recognising the pivotal role of a robust partner ecosystem, we prioritise forging strategic alliances with industry leaders. These collaborations are instrumental in expanding our capabilities and extending our market reach, embodying our commitment to innovation and excellence. By pooling our expertise and resources with our partners, we deliver integrated solutions that create significant value for our clients.
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