Ramco continues breakeven for the consecutive fourth quarter; posts global income of USD 9.05m
Sees sustained customer growth in SaaS segment, adds 14 new RODE (ERP on SaaS) customers
Tweet-- Driven by customer acceptance and recognition of Ramco OnDemand ERP (RODE) offerings, Ramco ends the quarter optimistically. The company has added a total of 29 new customers to its marquee list of customers, of which 14 are from the SaaS segment. The slew of measures undertaken during the quarter, aimed at increasing the focus on customer acquisitions, is helping the company achieve breakeven quarter-on-quarter, and is expected to fuel growth in the coming quarters as well.
For Q3 '09 -'10, the global income of Ramco Systems including revenues from subsidiaries in USA, Switzerland, Singapore, Malaysia and South Africa stood at USD 9.05 m. The profit for the period stood at USD 0.08 m as against last year's corresponding period loss of USD 2.09 m.
In terms of revenue contribution for the quarter India accounted for 52 % followed by US with 26% of revenues as against last year corresponding period contributions of 35% and 34% respectively depicting stronger domestic scenario. India was the primary revenue driver with revenues of USD 4.45 m followed by US with USD 2.23 m
The strategic initiatives conceived and nurtured during fiscal (07-08) enabled a great take-off for Ramco OnDemand ERP - India's first comprehensive ERP delivered as a service (Software as a Service). Last quarter RODE has made significant in-roads in SME segment and has witnessed excellent traction with 14 new order wins. Key order wins are Shakti Cords, GD Textiles, Ganapati Industries, Kauvery Textiles, Mark Engineers, Sievert India, Rajapur Shipyard, LPS Industrial Supplies, Vinayaka Industries, Max Cards, S.P.Mani & Mohan Dairy, Metco Roofings, Raunaq Automotive Components, Electrica Engineers. Company has also forayed into metros, Tier 1 & 2 cities in India to establish strong partner ecosystem for sales and implementation. Currently Ramco OnDemand ERP has 30 active partners; efforts are underway to increase the numbers to 50 by the end of this fiscal. On Enterprise side the key order wins are - India Telecom Infra, Indev Logistics, Alcon Laboratories, IBPIL - Arkay Energy (Rameswaram), Birla Corp Chittorgarh, Shree Cements, India Cements, Toshniwal Industries etc. For India, the total quarterly income reported are Rs 29.07 crores as against last year of Rs 26.08 crores depicting noteworthy growth of 11.5%. Net profit for the region stands at Rs 2.22 crores as against net losses of Rs 7.40 crores of last year.
On the partnership front, the company has announced HP Neoview as the preferred partner to deliver Core Banking Analytics Solutions for customers in India. Ramco will work with HP to jointly market and deliver the Core Banking Analytics Solution on HP Neoview enterprise data warehousing platform to help customers accelerate growth through improved business insights.
During the last three months, the company has witnessed excellent traction in the Middle East market, with notable growth of 93%, culminating in revenues of USD 1.09 m as against last year same period revenues of USD 0.57 m. This remarkable growth has been possible due to strong order book in the region. The quarter also signified the initiation of new partnering initiatives in the region. Implementations in the region have also been progressing well, with customers continuing to express general satisfaction with the diligence of Ramco's Professional Services teams.
The US and Europe operations have been steady, with revenues of USD 2.23 m and USD 0.72 m respectively.Speaking on the results, Mr. P.R. Venketrama Raja, Vice Chairman, Managing Director & CEO, Ramco Systems said, - "Our focused approach on the key market sectors with matured and proven technologies, coupled with significant cost rationalization, has ensured that Ramco is on the path of a sustainable and profitable growth. Our strategy to expand our engagements and offer ERP on SaaS model is helping the company move up the value chain, resulting in good growth with improved outlook. Q3 has been good for us in terms of new order wins and repeat orders from existing customers both in domestic and Middle East Market. We have been able to capitalize on the right opportunities in the emerging markets and have experienced good traction in terms of order wins & partnerships. With customer interest picking up we are well positioned to leverage opportunities and grow quarter on quarter".
Notes to Editor
About Ramco Systems
Ramco Systems, part of the USD 800 million Ramco Group, has delivered enterprise software and services since 1989. Today, Ramco is a global provider serving over 100,000 users with more than 1,400 employees operating out of 18 offices in 9 countries. Ramco Systems develops cost effective, flexible and innovative enterprise applications that can be deployed fast. It helps businesses respond to change swiftly. The company provides solutions to multiple verticals including banking, insurance, manufacturing, supply chain, aviation, transportation and logistics, healthcare, governance, retail and more. Ramco's collaborative solution innovation platform - Ramco VirtualWorks ensures that when your business changes, your system changes too. Ramco Systems has been certified for ISO 9001:2000 quality standards, ISO 27001 security standards and assessed at SEI CMMi - SW Level 5. For more information, please visit www.ramco.com