Ramco Systems Ltd Management Discussions

<dhhead>Management Discussion and Analysis</dhhead>

Company Overview

Ramco Systems Limited (referred to as ‘Ramco,’ Our Company,’ or ‘We’) is a global enterprise software provider, raising industry standards with innovative SaaS-enabled platform and products. Backed by over 26 years of expertise, our Company has been one of the leaders in technological evolution, delivering intelligent and scalable enterprise applications that drive digital transformation. Our offerings span both cloud and on-premises solutions, ensuring flexibility to meet varied client needs. By harnessing automation, artificial intelligence (AI), and machine learning (ML), we help businesses streamline operations, enhance decision-making, and achieve operational excellence. We provide a comprehensive suite of industry-specific solutions spanning Global Payroll, Aviation M&E/MRO, Logistics, and ERP. These offerings enable seamless automation, deliver real-time insights, and improve user experience. Whether simplifying multi-country payroll, accelerating aircraft turnaround, or modernizing supply chains, we empower enterprises to move with agility, intelligence, and scale.

In FY 2024-25, we launched Ramco Aviation Software 6.0, integrating AI, digital twins, and predictive maintenance to transform M&E and MRO operations. Our Logistics platform saw advancements in AI-powered route optimization, warehouse automation, and last-mile delivery. Additionally, Ramco ERP now features intelligent dashboards, hyper-automation, and no-code/low-code configurability. At the same time, our Global Payroll offers geo-specific compliance, anomaly detection, and seamless global processing.

We expanded our global presence with several million-dollar-plus deals and entered new sectors like cement, banking, textiles, education, and agriculture. We also achieved debt-free status, showcasing our financial stability. Furthermore, we were recognized at the HR Vendors of the Year 2024 awards for excellence in payroll software and outsourcing across Malaysia, Singapore, and Hong Kong. This recognition reaffirmed our leadership in delivering high-performance solutions.

Driven by a culture of innovation and collaboration, we continued to invest talent through targeted upskilling, agile workforce development, and strategic partnerships. As we fast-track our transformation into a next-gen tech powerhouse, our focus remains on delivering intelligent, scalable, and future-ready solutions that help businesses thrive in a dynamic digital world.

Solutions, Services, and Sectors

Key Focus

Modernizing Applications and Platforms Delivering Superior Customer Experiences

Service Offerings

Enabling Prompt Delivery, Transformation, and Organizational Agility Transforming and Migrating to Cloud Integrating Enterprise Applications Applying AI and ML

Enhancing User Experience (UX) and User Interface (UI) Design

Industry Verticals

Serving Aviation, Aerospace and Defense Supporting Manufacturing Catering to Real Estate and Construction Asset Management and Equipment Rental Driving Efficiency in Logistics Cement and Allied Industries Facilities Management Staffing and Professional Services Strengthening Port Operations

Industry Trends and Developments

The business environment is transforming significantly with advanced technologies like AI, ML, Cloud Computing, and the Internet of Things (IoT). These innovations are crucial for organizations like Ramco to stay competitive and deliver exceptional value to their customers.

Key Trends and Developments

Market Growth

Indias AI market is projected to reach USD 17 Bln. by 2027, recording a CAGR of 25-35%. This momentum stems from rising enterprise investments in AI-based solutions and a surge in AI talent nationwide. (Source: https://indiaai.gov.in/news/nasscom-bcg-report-says-india-s-ai-market-is-expected-to-touch-17-billion-usd-by-2027)

Investment Trends

Investments in AI continue to rise, particularly in data analytics and Generative AI. Companies are building proprietary AI platforms tailored to sector-specific needs across industries like healthcare, finance, and manufacturing.

(Source: https://www.trade.gov/market-intelligence/india-artificial-intelligence)

AI Adoption Across Business Functions

Business Function	Percentage of Organizations Using AI
Overall AI Adoption	78%
Generative AI Usage	71%

(Source: https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai)

Upskilling Initiatives

Organizations are placing a strong focus on AI workforce development. Some are committing up to USD 1 Bln. over the next three years to upskill their employees and strengthen AI capabilities across operations.

(Sources: https://www.financialexpress.com/business/digital-transformation-indias-ai-market-projected-to-hit-17-billion-by-2027-3400551/)

Cloud Computing

Cloud Adoption

The shift toward cloud-native technologies continues to accelerate as businesses seek greater scalability and efficiency. Simultaneously, the integration of AI and ML with cloud services is enabling more advanced data analytics and processing capabilities.

Edge Computing

The rise of edge computing alongside cloud solutions is expected to enhance data processing speeds. This is particularly beneficial for IoT applications, where real-time data analysis is crucial.

(Source: https://community.nasscom. in/communities/digital-transformation/ top-it-trends-shaping-digital-transformation-2025)

Integration with AI

Internet of Things (IoT)

The convergence of IoT and AI is enabling smarter data collection and analysis, enhancing decision-making capabilities across sectors such as smart Expansion of IoT manufacturing, logistics, and healthcare.

IoT adoption is growing rapidly, fueled (Sources: https://community.nasscom.in/communities/data-science-ai-community/ by advancements in 5G connectivity. data-and-ai-trends-2025-innovations-it-leaders-can-capitalize This is driving innovations such as https://nasscom.in/knowledge-center/publications/unlocking-value-data-and-ai-india-digital twins and real-time monitoring opportunity systems, boosting operational efficiency and improving customer https://community.nasscom.in/communities/analytics/emerging-trends-data-experiences across various industries. management-ai-machine-learning-and-beyond)

Data Management Innovations

Data Analytics

Organizations are adopting AI-powered automation for database management, AI-Powered Analytics improving efficiency in data handling and retrieval. Data fabric architectures are also emerging as a key solution to streamline data access across diverse environments. Businesses are increasingly using (Sources: https://community.nasscom.in/communities/analytics/emerging-trends-AI-driven analytics to gain actionable data-management-ai-machine-learning-and-beyond insights. In addition, predictive analytics is playing a critical role https://community.nasscom.in/communities/data-science-ai-community/top-5-data-in decision-making and business and-analytics-trends-2025 intelligence strategies. https://community.nasscom.in/communities/ai/future-ai-how-artificial-intelligence-will-change-world)

Cybersecurity

Enhanced Cybersecurity Measures

As cyber threats become more advanced, companies are integrating AI-led frameworks to strengthen defenses. Moreover, AI is being used to automate threat detection and response mechanisms, ensuring proactive security measures.

Demand for Cybersecurity Talent

The need for cybersecurity specialists is surging, making it one of the most sought-after roles in the tech industry. Furthermore, organizations are prioritizing cybersecurity investments as part of their overall digital transformation strategies to safeguard data and operations.

(Source: https://community.nasscom.in/communities/digital-transformation/top-it-trends-shaping-digital-transformation-2025)

Performance Review

FY 2024-25 brought several challenges, including macroeconomic uncertainty, longer sales cycles, and evolving regulatory requirements across key markets. Additionally, the shift toward cloud-based solutions required continuous investments in innovation and modernization. At the same time, competitive pressures in the enterprise software space intensified. Despite these headwinds, we stayed resilient by using our strong product portfolio, operational efficiencies, and strategic initiatives to navigate the phase effectively. Our turnaround efforts are starting to deliver measurable results, reflected clearly in our financial performance. We recorded strong growth in recurring revenues, with a significant uptick in cloud orders for our subscription-based SaaS solutions. The successful development of Ramco Payce redefined payroll efficiency. Simultaneously, Ramco Aviation Software 6.0 transformed maintenance and engineering (M&E) and MRO operations through AI-powered automation and predictive analytics. Our monthly review process has enhanced client engagement, offering deeper insights into how organizations benefit from our solutions in real time. Additionally, our stringent deal review processes and cost-optimization initiatives further strengthened our financial and operational health, improving margins and cash flow.

Collaboration remained central to our strategy, fueling both global expansion and innovation. Our alliances

Rising cybersecurity investments reflect the increasing importance of protecting digital assets amid expanding cyber threats.

Our Company stands ready to capitalize on major technology trends like AI, cloud computing, IoT, and cybersecurity. India’s AI market is projected to reach USD 17 Bln. by 2027. We are well positioned to be part of this growth, as our AI-driven ERP enhances automation, predictive analytics, and decision-making. Our cloud-native platforms support seamless AI-ML integration. Parallelly, IoT and edge computing enhance real-time visibility and operational efficiency. Furthermore, embedded AI-driven cybersecurity ensures solid threat detection and data security. As enterprises accelerate digital transformation, our cutting-edge tech stack and industry expertise position us as a key enabler of innovation and growth.

with Deloitte, Oracle, and BDO India have strengthened our ability to seamlessly integrate payroll solutions, reinforcing our leadership in the domain. We also built strategic partnerships with top technology and consulting firms, enhancing our capabilities across aviation, logistics, and enterprise solutions.

Our Company continues expanding across international markets, strengthening our presence in North America, Europe, the Middle East, and the Asia-Paci_c region. Further validating our growth strategy, we secured key client acquisitions across Australia, Saudi Arabia, Malaysia, and the Philippines. Furthermore, organizations across logistics, aviation, and HR & payroll automation continue to embrace our innovative solutions. This highlights the trust and confidence industry leaders place in Ramco.

Looking ahead, our roadmap is focused on deepening our SaaS offerings, strengthening partnerships, and driving AI-led automation. With an aggressive push toward cloud-first and mobile-first solutions, we aim to create a seamless, intelligent enterprise experience for businesses worldwide. As we enter the next phase of growth, our focus will be on scaling innovations, optimizing efficiencies, and expanding into high-potential markets, positioning our Company as a leader in the enterprise software market.

Ramco Global Payroll & HR

Ramco Global Payroll & HR is a comprehensive cloud-native platform designed to streamline payroll and human resources management for enterprises across industries. Our solution modernizes payroll operations through AI, ML, and in-memory computing, ensuring accurate, compliant, and automated payroll processing across multiple geographies. With built-in analytics, self-service capabilities, and seamless integration with HR systems, we empower organizations to enhance employee experience, while optimizing payroll efficiency. Moreover, our platform’s scalability and flexibility enable businesses to adapt swiftly to workforce changes, supporting both in-house payroll management and outsourcing models. As a key revenue driver, contributing approximately 38% of our business, Ramco Global Payroll & HR continues to gain traction globally, reinforcing its strategic importance. With increasing demand for digital payroll solutions, we remain committed to driving innovation and delivering payroll experiences that align with the evolving needs of enterprises in a dynamic, digital-first world.

Air Niugini (Papua New Guinea) for payroll transformation across 4 countries.

Malaysia’s top bank for payroll streamlining for 5,000+ employees.

A leading early learning services provider in Australia for payroll transformation.

One of the world’s largest communications groups for multi-country payroll operations. Philippines’ leading outsourcing services provider for payroll transformation.

Received the HR Vendors of the Year 2024 for Best Payroll Software and Best Payroll Outsourcing Partner in Malaysia, Singapore, and Hong Kong.

Attracted strong market interest in Ramco Payce, with a tech refresh underway to enhance efficiency and customer experience.

Future Outlook

Ramco HRP is advancing payroll innovation with a focus on global expansion, AI-driven intelligence, and user empowerment. We are scaling success in Europe and APAC through strategic HCM partnerships, enhancing platform intelligence with AI/ML for insights and fraud detection, and boosting autonomy through configurable workflows. Our integration framework, RDex, is being strengthened with plug-and-play connectivity for platforms like Workday and Oracle, ensuring seamless interoperability and a frictionless user experience.

Ramco Aviation

We offer an innovative aviation software suite built to streamline and modernize operations across aviation, aerospace, and defense sectors. Ramco Aviation 6.0, our latest cloud-based, AI-powered platform, brings together advanced automation, predictive maintenance, and real-time analytics to increase efficiency in MRO activities.

With dedicated modules for Hangar, Engine, Component, and Line MRO, the system enables seamless workflow automation, efficient inventory management, and full regulatory compliance. In addition, AI-driven diagnostics and digital twin technology help reduce turnaround times and maintenance costs, while improving aircraft availability and decision-making.

To support frontline operations, our mobile apps, including Mechanic Anywhere, Warehouse Anywhere, and Tool Anywhere, provide real-time updates, geo-fenced tracking, and digital sign-offs. These facilities enable technicians to work more efficiently on the go.

The platform also integrates an ecosystem of hubs, including the Procurement Hub, Work Reporting Hub, and Customer Order Hub, to automate tasks and support AI/ ML-based decision-making. By addressing key industry challenges like manual processes, supply chain delays, and cost pressures, Ramco delivers a unified, intelligent system that enhances speed, accuracy, and operational control.

Highlights of FY 2024-25

Launched Ramco Aviation 6.0: We introduced AI-driven predictive maintenance and advanced workflow automation, enabling real-time aircraft health monitoring and proactive maintenance planning.

Upgraded Engine MRO Capabilities: Our latest improvements focus on reducing turnaround times and eliminating operational bottlenecks, ensuring faster, more efficient engine maintenance.

Expanded Global Presence: We have successfully extended our presence in North America, Europe, the Middle East, and APAC by forming strategic partnerships with leading aviation and defense organizations.

Welcomed Prominent Clients: Our software has been adopted by prominent airlines, MROs, and defence organizations, including Fly Vaayu (UAE) for CAMO, maintenance planning, supply chain management, and finance & accounting, Philippine Airlines for digitizing PAL Express fleet operations, and Pradhaan Air Express (India) for aviation software implementation. Integrated Generative AI: We have embedded generative AI capabilities to automate documentation, improve decision-making, and enhance user experience, making aviation operations smarter and more efficient.

Strengthened Operational Footprint: Our Company’s services are now trusted by 24,000+ users managing 4,000+ aircraft across 90+ aviation organizations.

Future Outlook

As we chart the path forward, we remain committed to pushing the boundaries of digital transformation in aviation. Our focus will be on enhancing our AI and ML-powered tools for cognitive discrepancy reporting, predictive supply chain management, and intelligent notifications based on technical activities. We will also expand our mobile app ecosystem and strengthen cloud-based scalability, extending

Ramco Logistics

We provide a cloud-based logistics solution that integrates Transport Management System (TMS), Warehouse Management System (WMS), and Fleet Management into a single, unified platform. Built for scalability and real-time visibility, our platform supports logistics providers, 3PL companies, and fleet operators in optimizing operations across the supply chain.

With features like dynamic route optimization, automated billing, and IoT-enabled fleet tracking, our solution helps businesses improve operational efficiency and streamline last-mile delivery. Additionally, to ensure high service quality, we follow a structured governance model. This model includes weekly, fortnightly, and monthly reviews to monitor SLAs, address customer issues, and drive continuous improvement.

Our focus on selective contracts and operational efficiency has enabled our business unit to maintain a good gross margin. In parallel, we have strengthened our workforce through a leadership development program and cross-skilling initiatives. These initiatives have built a more agile and capable team, better equipped to deliver faster and high quality implementations.

Highlights of FY 2024-25

Secured Major Global Wins: We secured key contracts in Australia and the Middle East, reinforcing our leadership in the global logistics space. Modernized Warehouse Management System (WMS): Our revamped WMS now offers enhanced scalability, automation, and real-time inventory tracking, making warehouse operations more efficient than ever.

Expanded into Cold Chain Logistics: With an increased focus on temperature-sensitive supply chains, we have strengthened our solutions for industries such as pharmaceuticals and food distribution.

Delivered Exceptional Customer Experience: We achieved an impressive 98-99% SLA adherence, leading to increased customer satisfaction and referenceable clients.

Accelerated Implementations: We reduced deployment timelines from the traditional 18 months to as little as 4-5 months, enabling faster go-lives and quicker ROI for our customers.

Future Outlook

Going forward, we aim to achieve the modernization of our TMS and WMS platforms, while embedding advanced AI and low-code capabilities for easier customization. We will also expand across Australia, New Zealand, and APAC, focusing on partnerships with logistics service providers. Parallelly, we plan to strengthen third-party integrations, particularly in tracking, fuel monitoring, and last-mile logistics, making our solutions more comprehensive and future-ready.

Ramco ERP is transforming the way businesses function with a cloud-native, AI-powered platform that helps organizations modernize and accelerate digital transformation. By integrating finance, procurement, supply chain, manufacturing, and HR into one intelligent system, our solution provides end-to-end process visibility and control.

The platform is built on machine learning, automation, and a role-based dashboard design, making it easier for users to access relevant information and perform tasks efficiently. With tailored configurations for industries like cement, textiles, and manufacturing, our Company meets sector-specific needs, while enhancing agility and decision-making.

We have improved the user experience by replacing traditional menu-based navigation with intuitive, role-based dashboards that increase usability and productivity. Customers also benefit from self-service tools that allow them to configure alerts, notifications, and workflows independently, reducing reliance on external support and increasing operational transparency. By eliminating rigid legacy systems, Ramco ERP delivers personalized workflows and a responsive business environment. As industries embrace data-driven operations, our platform helps them adapt faster and remain competitive in a digital-first world.

Highlights of FY 2024-25

Expanded Market Presence

We have migrated several enterprises from legacy ERP systems, including SAP, to Ramco ERP, proving our platform’s superiority in flexibility and cost

1 1efficiency.

Introduced Conversational ERP with AI

Ramco AskMe, our AI-driven conversational interface, allows users to execute transactions seamlessly through voice commands and chat-based interactions, making ERP more intuitive and accessible.

Developed BINGO (Business Intelligence on the Go)

Our new real-time analytics tool provides instant insights, empowering business leaders to make data-driven decisions anytime, anywhere.

Ensured Timely Implementations

We have streamlined our implementation processes to ensure faster, more seamless ERP transitions, reducing disruption and maximizing efficiency for our clients.

Facilitated Large-Scale Transformations

We have successfully enabled large-scale digital transformations in industries such as cement, manufacturing, and logistics, reinforcing our commitment to operational excellence.

Earned Recognition

We were named among the Best Brands in India 2024 by ET Now.

Future Outlook

Our Company remains committed to strengthening our industry-specific expertise and expanding into high-growth regions, including India, the Middle East, and Southeast Asia.

Additionally, we will keep investing in AI-driven automation, enhance self-service customization, and extend integration with cloud, IoT, and manufacturing systems to create an intelligent enterprise backbone for our clients. With continuous innovation, we aim to redefine enterprise resource planning and empower businesses to thrive in the digital era.

Our Client Portfolio

We continue to build a dynamic and diverse client base across industries and global markets. Our relentless focus on innovation and delivering excellence has led to noteworthy client acquisitions over the past year, reinforcing our position as a trusted technology partner. With each new partnership, we further solidify our market presence and drive transformative solutions that empower businesses worldwide.

Building Strong Alliances

We believe strategic partnerships play a vital role in fostering innovation, broadening our market presence, and delivering cutting-edge solutions to our clients. By collaborating with industry leaders, we strengthen our capabilities and develop integrated offerings that deliver measurable value. These alliances enable businesses to utilize advanced, technology-driven solutions that enhance efficiency, ensure compliance, and optimize overall operations.

Key Partnerships

Partner	Partnership Overview	Impact
Workday	Achieved Workday Global Payroll Certified Integration, seamlessly connecting Ramco’s payroll solution with Workday’s HR and financial management systems.	Clients benefit from improved payroll accuracy, efficiency, and compliance across multiple geographies.
Deloitte	Collaborated with Deloitte India to drive payroll transformation by integrating Deloitte’s consulting expertise with Ramco’s advanced payroll solutions.	Organizations gain customized payroll solutions designed for efficiency, compliance, and strategic workforce management.
		Businesses can optimize payroll
Oracle	Listed Ramco Global Payroll on Oracle Cloud Marketplace, empowering enterprises to use Oracle’s powerful cloud infrastructure for payroll management.	operations with cloud-enabled flexibility, enhanced security, and seamless integration within Oracle’s ecosystem.
BDO	Partnered with BDO India to deliver a world-class payroll experience by combining advanced payroll technology with expert advisory services.	Clients can have high-precision payroll processing, ensure regulatory compliance, and enhance data security.

Financial Performance>

In line with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, our Company must disclose significant changes (variation of =25% as compared to the previous financial year) in sector-specific key financial ratios, as well as any changes in return on net worth. We have identified the key financial ratios listed in the table below, which we track only at the consolidated level.

Key Financial Ratios

Particulars	March 31, 2024	March 31, 2025
Interest Coverage Ratio	(38.17)	(4.37)
Current Ratio	0.75	0.82
Debt-Equity Ratio (Including Lease Liabilities)	0.20	0.17
Operating Profit Margin	(45.17)%	(3.64)%
Net Profit Margin	(46.01)%	(5.79)%
Product Revenue to Total Revenue	44.66%	39.39%
Return on Net Worth	(77.70)%	(10.85)%
R&D Spend to Revenue	15.75%	12.98%
Days Sales Outstanding (DSO)	52	47

Detailed Explanation for Signi_cant Changes in Sector-Speci_c Key Financial Ratios and Changes in Return on Net Worth

Return on Net Worth

The net loss has reduced to Rs. 342.48 Mln. from Rs. 2,419.32 Mln. (refer to PAT analysis given below) while equity attributable to equity holders of the parent has increased to Rs. 3,157.79

Mln. from Rs. 3,113.69 Mln., mainly due to increase in Securities premium on account of conversion of warrants into equity under Preferential Issue 2022 and exercise of stock options, resulting in improvement in return on net worth to (10.85)% for the current year from (77.70)% during the previous year.

Operating Pro_t Margin (OPM)

The OPM for the year worked out to (3.64)% as against (45.17)% due to improvement in EBIT (refer PAT analysis given below) compared to the previous year.

Net Pro_t Margin (NPM)

The NPM for the year worked out to (5.79)% as against (46.01)% due to improvement in PAT compared to the previous year.

The increase in the PAT is analyzed below

Particulars	Rs. Mln.
Increase in Revenue	655.11
Increase in Other Income	14.63
Decrease in Purchase of Stock in Trade	29.72
Decrease in Employee Benefits Expense	68.53
Increase in Depreciation and Amortization Expense	(155.61)
Decrease in Provision for Doubtful Debts	1,333.18
Decrease in Other Expenses	213.89
Increase in EBIT	2,159.45
Decrease in Finance Costs	12.98
Higher Taxes	(98.01)
Increase in Share of Profit of an Associate	0.20
Decrease in Non-Controlling Interests	2.22
Increase in PAT attributable to Shareholders of the
	2,076.84
Company

Interest Coverage Ratio

The finance costs have gone down to Rs. 49.25 Mln. during the current year from Rs. 62.23 Mln. during the previous year.

(i) The interest on loans and finance charges have decreased to Rs. 1.17 Mln. during the current year compared to Rs. 8.93 Mln. during the previous year, on account of decrease in average borrowings.

(ii) The interest on lease liabilities have marginally gone down to Rs. 48.08 Mln. during the current year compared to Rs. 53.30 Mln. during the previous year.

At the same time, the loss before interest and tax has significantly improved to Rs. 215.38 Mln. during the current year from Rs. 2,375.03 Mln. during the previous year.

The above had resulted in the betterment in interest coverage ratio to (4.37) for the current year from (38.17) for the previous year.

Current Ratio

The current ratio has increased by 9.33%, i.e., from 0.75 as at the end of the previous year to 0.82 as at the end of the current year. Current assets increased by 11.33% mainly due to increase in Mutual funds and Cash & cash equivalents and while current liabilities increased by marginally by 2.33%.

Particulars	As at the end of the current year	As at the end of the previous year
Current Assets
Trade receivables	923.04	952.23
Other financial assets	41.69	204.25
Other current assets	297.39	393.70
Others	925.34	413.64
Total	2,187.46	1,963.82
Current liabilities
Borrowings	-	-
Trade payables	571.65	720.59
Lease liabilities	139.98	136.58
Others	1,951.62	1,745.55
Total	2,663.25	2,602.72
Current Ratio	0.82	0.75

Challenges

Key Challenges	Strategic Industry Responses
	Strengthening differentiation strategies
Intense Market Competition and	Enhancing value proposition
Industry Risks	Optimizing cost structures
	Focusing on customer-centric solutions
Talent Retention and Workforce Attrition	Fostering employee engagement through competitive compensation, career development opportunities, and a positive work culture
	Staying updated on evolving regulations
Regulatory and Policy Uncertainty	Engaging in proactive policy advocacy
	Ensuring operational adaptability
	Implementing robust forex risk management strategies
Foreign Exchange Volatility	Hedging currency exposure
	Aligning receivables and payables efficiently
Economic Uncertainty and Market	Enhancing operational efficiency
Fluctuations	Diversifying revenue streams
	Building financial resilience
Technology Adoption and Digital	Investing in AI, ML, and automation
Transformation	Assessing risks and benefits carefully
Evolving Workforce Expectations	Offering flexible work models, meaningful roles, and upskilling programs to attract and retain top talent
Sustainability and Environmental	Developing comprehensive ESG strategies
Compliance	Integrating eco-friendly business practices
Data Security and Regulatory	Implementing stringent data governance policies
Compliance	Adhering to global data protection standards (e.g., GDPR)
	Focusing on innovation
Rising Competitive Pressures	Elevating customer experience
	Exploring new market opportunities
Technological Disruption and	Investing in continuous R&D, employee reskilling, and agile business models
Shortened Lifecycles
Geopolitical Instability and Trade	Developing strong business continuity frameworks
Risks	Diversifying geographic operations to mitigate risks

Outlook

Our Company continues to gain strong momentum across key business units like HR and Payroll, Aviation, Logistics, and ERP. HR and Payroll has emerged as the highest contributor to overall revenue and is well-positioned to retain its leadership.

Over the next one to two years, HR and Payroll is anticipated to become the primary driver of order book demand. We are now targeting modernization and digital transformation across all business segments, ensuring our clients benefit from seamless operations, improved efficiency, and enhanced user experience.

Ramco Aviation continues its transformation with the release of version 6.0, introducing advanced AI integration, predictive maintenance, and workflow automation. This business unit is significantly focused on Engine MRO, offering tools to manage complex assembly operations, reduce turnaround times, and streamline compliance.

With AI-driven analytics and generative AI features, our Company is reshaping maintenance processes through automation and conversational interfaces. Our strategic expansion into North America, Europe, and APAC, along with the onboarding of new defense and airline clients, strengthens our Company’s global footprint. Furthermore, the aviation unit is actively transforming client operations through digital hubs, mobile apps, and scalable cloud platforms.

Our logistics unit has made a turnaround with improved performance and the rapid implementation of key projects in Australia and the Middle East. We modernized our WMS to improve scalability. Our core offerings, TMS, WMS, and Fleet Management, remain central to this unit’s value proposition. Ramco Logistics is shifting toward low-code platforms to speed up deployments and enhance governance and service delivery standards. Looking forward, our focus will be on completing the modernization of TMS and WMS, increasing win rates, and scaling operations in APAC and Saudi Arabia.

Our ERP platform achieved strong traction through strategic wins and customer shifts from legacy systems like SAP. We made significant progress in industries such as cement, textiles, and manufacturing. Additionally, significant efforts have gone into UI/UX modernization, role-based dashboards, and conversational AI features, enhancing decision-making and productivity. The ERP business is undergoing a major transformation towards intelligent automation and real-time insights, with tools like BINGO (Business Intelligence on the Go) and AI-driven alerts. The roadmap for FY 2025-26 includes deepening vertical expertise, especially in cement and manufacturing, and expanding into the Middle East and Southeast Asia, positioning our Company as a competitive alternative to global ERP providers.

Risk Management

We have implemented a comprehensive risk management framework to identify, assess, and reduce key risks across global operations. Our Risk Management Committee oversees this process, ensuring effective strategies are in place to address potential challenges. By systematically addressing these risks through targeted mitigation strategies, our Company aims to safeguard its operations, maintain compliance, and drive sustainable growth in a dynamic global environment.

Risk Category	Impact	Mitigation Strategy
Intellectual Property Infringement	Unauthorized use or infringement of intellectual property can lead to loss of market share, revenue, and reputational damage. Data breaches, malware attacks, and unauthorized access may result in financial losses, regulatory	Maintaining a dedicated team to monitor and enforce intellectual property rights Implementing robust protection measures Regularly updating the intellectual property portfolio Deploying advanced threat detection and prevention systems
Cybersecurity Breaches and Data Privacy		Utilizing robust data encryption
	penalties, and reputational harm.
Concerns Regulatory Compliance and Legal Risks	Non-compliance with laws and industry regulations can cause legal liabilities, fines, and reputational damage.	Conducting regular security audits Providing comprehensive employee training Employing a dedicated compliance team to monitor regulatory changes Seeking legal advisory services
Changing Buyer Behavior	Rapid technological evolution and shifting customer expectations can impact our business strategy.	Ensuring alignment with all applicable regulations Monitoring industry trends continuously Tracking customer preferences
Talent Acquisition and Retention	Losing key personnel and failing to attract skilled talent can hinder growth and innovation initiatives.	Evaluating competitive products Adapting business strategies accordingly Offering competitive compensation Providing professional development opportunities
Challenges		Implementing employee engagement programs
Currency Volatility Economic and Political Conditions	Fluctuations in exchange rates can significantly impact revenues, operating results, and cash flows. Political instability, economic policy changes, and mobility constraints can disrupt business growth and affect employee safety.	Establishing succession planning Hedging trade receivables in major currencies (USD, SGD and AUD) to minimize the impact of currency volatility Conducting proactive risk assessments Monitoring local situations Employing a global team of experts to manage mobility regulations

Internal Control Systems

Our Company has implemented an internal control system suited to the scale and nature of our operations. This system offers reasonable assurance in recording transactions, ensuring reliable financial and operational information, complying with applicable laws, and safeguarding company assets. We review our processes regularly to stay aligned with changing regulations and business environments.

We use an enterprise resource planning system to manage accounting data and financial reporting. This ensures accurate, seamless, and timely financial information. Our internal controls comply with the requirements of the Companies Act, 2013 (the Act).

Risk Category	Impact Environmental	Mitigation Strategy Environmental
	The IT industrys environmental impact primarily arises from electricity consumption and water usage.	Reducing carbon footprint by upgrading to energy-efficient equipment Installing LED lighting Implementing water-conserving fittings
	Social	Social
Environmental and Social Risks	Exposure to social risks includes changes in immigration laws and cybersecurity threats affecting global operations.	Enhancing cybersecurity through endpoint detection and response (EDR) Implementing data loss prevention (DLP) Adopting privileged access management (PAM) Applying zero trust network (ZTN) principles
	Intense competition from large, established players can limit pricing flexibility and pressure profit margins.	Utilizing robust data encryption Conducting regular third-party audits to ensure information security compliance Focusing on innovation
High Competitive Intensity		Differentiating product offerings Optimizing cost structures
		Enhancing customer relationships
Exposure to Forex Risk	Volatility in foreign exchange rates can affect profit margins, potentially leading to financial losses.	Implementing hedging strategies for foreign currency exposures Timing receivables and payables strategically
Technological Obsolescence	Rapid technological advancements may render existing products or services outdated, impacting market relevance.	Investing in continuous research and development Adopting emerging technologies Fostering a culture of innovation

An external audit firm conducts internal audits based on a plan prepared in consultation with the statutory auditors and approved by our Company’s Audit Committee. The Internal Auditors report directly to the Audit Committee, and their reports are presented and discussed within the committee. In addition, the Audit Committee seeks the perspectives of both internal and statutory auditors to evaluate the adequacy of internal control systems.

The statutory auditors have issued a report on internal control over financial reporting, as defined under Section 143 of the Act. Our Company reviewed the effectiveness of these controls in line with Regulation 17(8) of SEBI LODR, as of March 31, 2025. Based on this evaluation, conducted in compliance with Section 177 of the Act and Regulation 18 of SEBI LODR, the Audit Committee concluded that as of March 31, 2025, our internal financial controls were adequate and operating effectively