BWI: Ramco Posts Global Income of USD 11.04 M; Revenues Grow 23% Sequentially

Press release from Business Wire India
Source: Ramco Systems Limited
Tuesday, October 26, 2010 10:14 AM IST (04:44 AM GMT)
Editors: General: Consumer interest; Business: Advertising, PR & marketing, Banking & financial services, Business services, Financial Analyst, Information technology, Stock exchanges; Technology
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Ramco Posts Global Income of USD 11.04 M; Revenues Grow 23% Sequentially
Adds 33 New Customers in Q2

Chennai, Tamil Nadu, India, Tuesday, October 26, 2010 -- (Business Wire India) -- Ramco Systems Limited (BSE - 532370, NSE - RAMCOSYS, MSE - RSST); a leading software company focused on consulting, products, and managed services, today announced, the results for the second quarter of FY 2010-11.

For the first half of the year (H1: Apr-Sep '10), total global revenues of Ramco Systems Limited, including revenues from subsidiaries in USA, Switzerland, Singapore, Malaysia and South Africa stood at USD 20.90 mn (Rs 95.15 cr). The profit for the first half of the year stood at USD 0.17 m (Rs 0.79 cr).

For the quarter ended September 30, 2010 (Q2:10-11), global income of Ramco Systems Limited, including revenues from subsidiaries in USA, Switzerland, Singapore, Malaysia and South Africa stood at USD 11.04 m (Rs 50.85 cr). The profit for the quarter stood at USD 0.11 m (Rs 0.54 cr) as against last year corresponding quarter profit of USD 0.11 m (Rs 0.53 cr), thereby maintaining breakeven.

Financial highlights:
. Q2 revenue grows 23% YoY
. India operations contributed 52%, followed by US with 27%, as against last year corresponding quarter contributions of 44% and 34% respectively, depicting stronger domestic scenario.
. India was the primary revenue driver followed by the US operations.
. Middle East & North African markets have shown significant growth contributing 21% as against last year corresponding quarter contributions of 11%.

Business highlights:
. Adds 33 new customers
. Sees good traction for Ramco OnDemand ERP, backed by a strong marketing campaign
. Makes major inroads for its Aviation business, globally
o Signs a prestigious contract with National Aviation Company of India Limited (NACIL) for Maintenance, Repair & Overhaul (MRO) suite of Aviation software offerings
o Wins fleet and MRO deals in the Americas & Indonesia
. Steady growth in Middle East and Africa geography
o Wins orders from Gulf Petrochem and Gulf Precast Concrete Company L.L.C. (GPCC), two leading, high-growth UAE companies in their respective industry segments, to offer its full-suite of Ramco Enterprise Series Solution.

Other announcements:
. Mr. D. Rajasekar and Mr. R. Shankar were elevated as Executive Vice Presidents. Mr. D. Rajasekar will be responsible for Analytics and Ramco OnDemand ERP businesses. Mr. R. Shankar, who has been heading Middle East and Africa, also takes over additional responsibility for the India geography.

Product launch:
. Ramco OnDemand ERP 2.0 - During this quarter, the company launched an upgraded version of its SaaS based ERP - Ramco OnDemand ERP 2.0 - India's first full-fledged ERP offering on the cloud. RODE 2.0 adds significant functionalities, features, and modules over the earlier offering. The ERP offering has a rich user interface and comes with a unique set of extension / customization capabilities.
. Ramco Systems launched its newest Enterprise Solutions set for the Medical-Hospital-Healthcare sector in the Americas.

Commenting on the results, Mr. P.R. Venketrama Raja, Vice Chairman, Managing Director & CEO, Ramco Systems said, - "This has been a very important quarter for us at Ramco, as we embarked on a large-scale marketing campaign to promote our SaaS based offering - Ramco OnDemand ERP in print and outdoor media. In addition to tremendous market response, the campaign has also helped us position Ramco as an ERP company having a strong national presence. We believe, with strong products and a successful customer base, we are well positioned to tap the hitherto untapped SaaS based ERP market in India. We are also witnessing a surge in demand for our Aviation software, globally and are confident of positive growth in the business. Financially, we have continued to have a breakeven quarter and look forward to positive growth in the quarters ahead."

About Ramco Systems

Ramco Systems, a part of the USD 875 Million Ramco Group, is a leading software company focused on consulting, product and managed services business. Headquartered in Chennai, Ramco Systems was started as an R&D division of Ramco Industries Limited in 1992, and later established as an independent company in 1999. The company focuses on providing innovative business solutions that can be delivered quickly and cost-effectively in complex environments. Globally, Ramco has over 100,000 users from 800+ customer organizations since inception. The company currently has 14 offices spread across India, US, Europe, Middle East and APAC and employs over 1,400 employees.

Ramco's key differentiator is its innovative approach to develop products through its revolutionary enterprise application assembly and delivery platform - Ramco VirtualWorksT. Ramco Systems has seven major product suites - Ramco Enterprise Suite, Ramco Enterprise Asset Management Suite, Ramco Aviation, Ramco OnDemand ERP (ERP on SaaS), Ramco Business Information Management Suite, Ramco Enterprise Process Suite, and Ramco Mining. Strong domain knowledge coupled with proven implementation expertise enables Ramco to provide specialized solutions in verticals such as Manufacturing, Real Estate & Construction, Energy & Utilities, Logistics, Service, BFSI, Aviation, Government and Defense.

Ramco Systems has been assessed for ISO 9001:2008 and ISO 27001:2005 information security standards. Ramco's BPO unit is SAS 70 Type II certified.

"The Company is proposing to make a rights issue of equity shares in the near future and is in the process of filing a draft offer document with the Securities Exchange Board of India"

For more information, please visit www.ramco.com

Safe Harbor

Certain statements in this release concerning our future growth prospects are forward looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT business including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, withdrawal of governmental fiscal incentives, political instability, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Ramco Systems may, from time to time, make additional written and oral forward-looking statements, including statements contained in our reports to shareholders. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.

To view the quarterly results tables, please click on the link below:

Results Table
For picture(s)/data to illustrate this release click below:

http://www.BusinessWireIndia.com/attachments/Ramco_Q2_2010_2011.pdf
Ramco_Q2_2010_2011.pdf


CONTACT DETAILS
Vinitha Ramani, Ramco Systems Limited, +919840368048, vinitharamani@rsi.ramco.com
Twinkle Xavier, 20:20 MEDIA, +919884480115, twinkle@2020india.com

KEYWORDS
CONSUMER, MARKETING, BANKING, BUSINESS SERVICES, Financial Analyst, IT, STOCK EXCHANGES, TECHNOLOGY

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