The Hindu Business Line : Ramco Systems breaks even in Q2

Chennai, Oct. 24 Ramco Systems has broken-even in the second quarter of this financial year with global net profit of $0.10 million as compared to a net loss of $2.74 million in the first quarter. It recorded global revenues of $12.86 million, up 31 per cent as compared to the last quarter.

In the corresponding second quarter of last fiscal, the company reported a global net profit of $0.06 million on revenues of $13.49 million. “The positive result this year was due to tighter cost management and focus on non-US market since April,” said Mr Kamesh Ramamoorthy, Chief Operating Officer, Ramco Systems.

Cost management

On cost management, Mr Ramamoorthy said last year around 700 people were working on research and development but the number was reduced to around 300 and the rest were redeployed in software projects. This helped the company to reduce employee cost in the second quarter to $6.21 million ($7.56 million). “We hope to continue this positive trend in the next two-three quarters,” he said.

From April this year, Ramco also focussed on non-US markets such as India, South Africa and West Asia. During the last six months, the West Asian region contributed significantly, with key order wins such as Mulk Holdings, UNEECO, Dana Gas and Sharjah Teaching Hospital. In South Africa, the company secured e-governance projects.

For India, the total quarterly income reported was Rs 30.52 crore (Rs 21.29 crore), according to a company press release.

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