The Hindu Business Line : Ramco bets on VirtualWorks

The company's global operations had breakeven numbers during the fourth quarter of 2003-04 by reporting a net profit of $0.18 million (about Rs 80 lakh) on revenues of about $12 million (Rs 55 crore). The numbers include figures for Indian operations.

If Ramco sustains the current business growth, the company should turnaround by year-end or in 15 months, he said.

For fiscal ended March 31, 2004, the Chennai-based software firm company reported a net loss of $12.40 million (Rs 60 crore) on revenues of $33.44 million (Rs 480 crore). Ramco's Indian operations reported a net profit of Rs 4.20 crore on total revenues of Rs 33 crore during the quarter ended March 31, 2004. Last time the company reported a quarterly profit was in the fourth quarter of 2001, an official said.

The company hopes to sustain this business momentum during the current year, and has projected a 25 per cent to 40 per cent growth in its yearly revenues, said Mr P.R. Venketrama Raja, Vice-Chairman, Managing Director and Chief Executive Officer, Ramco Systems. "However, it is going to be a tightrope walking in the next couple of quarters," he said.

The company is betting high on its core product, Ramco VirtualWorks, for the turnaround. The product fully automates the manufacturing system from conception to delivery of a product, and all this through the Web.

It took nearly six years for Ramco to develop this product, and it spent about $80 million (about Rs 350 crore). Around 800 employees were involved in research and development, he told newspersons here today. Revenues from VirtualWorks in 2003-04 were about 30 per cent of total revenue. However, in 2004-05, revenue from VirtualWorks will be 60 per cent, while other revenue will be 40 per cent. In 2005-06, nearly 80 per cent of company's revenue will be from VirtualWorks, he said.