Ramco's Q1 net dips 65 p.c. YoY; adds 21 clients

BANGALORE, INDIA: Ramco Systems, an IT product company focused on consulting, product and managed services today said that the company's Profit After Tax for the first quarter ended June 30, 2010, stood at Rs 27.12 lakh, representing a 65 per cent dip compared to a net of Rs 78.39 lakh during the corresponding quarter of the previous year. On Q-o-Q basis, net was down 88 per cent from Rs 2.2 crore reported in the previous quarter.

India operations contributed 60 per cent, followed by US with 24 per cent, as against last year corresponding quarter contributions of 42 per cent and 34 per cent respectively, depicting stronger domestic scenario.

India was the primary revenue driver with the revenue of US$ 5.91 million followed by US with US$ 2.34 million.

Middle East & North African markets have shown consistent growth contributing 11 per cent as against last year corresponding quarter contributions of 7 per cent Ramco said in a regulatory filing.

The company added 21 new customers for Ramco OnDemand ERP and won a deal for its MRO offerings from a large airline in India, the release said.

Commenting on the results, P.R. Venketrama Raja, vice chairman, managing director & CEO, Ramco Systems said, “We have consistently maintained break-even for the last six quarters and are looking forward for similar traction in the coming quarters. This quarter has been good for us in terms of new order wins and customer acquisitions. Our sustained efforts and investments towards OnDemand offering have started yielding the desired results with consistent traction and addition of customers on QoQ basis. In addition, we are also witnessing good visibility for our Banking Analytics practice.”

Meanwhile, Ramco Systems said its board approved raising of further capital by issue of equity shares on a rights basis for Rs.40 crore.

The board also constituted a Rights issue 2010 Committee and delegated necessary powers to the committee to finalize the terms and conditions and other modalities of the Rights Issue.