Dolat Capital: Ramco Systems’ Deal Wins Momentum Intact Remotely; Tight Cost Initiatives Revives Operating Profit Margin 
Employees work on computers inside an office. (Photographer: Kerem Uzel/Bloomberg)

Dolat Capital: Ramco Systems’ Deal Wins Momentum Intact Remotely; Tight Cost Initiatives Revives Operating Profit Margin 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Ramco Systems Ltd. reported strong results with revenue growth of 4.5% QoQ at $19.4 million as against our estimate of $16.5 million as deal signings normalises in Q1 along with continued improvement on faster Go-lives.

Company won new orders worth $21.3 million in Q1 FY21, taking the unexecuted order book to $164 million (2 times revenue).

Order intake improved materially after a brief freeze in March 2020 (signed $13 million in Q4); although sales continue to remain largely digital-led only.

Profitability improved in Q1 significantly with Ebit margins (excluding foreign exchange) at 14.9% as it saved materially on personnel cost (steep pay-cuts to top 90 employees) and selling, general and administrative expense (especially on travel and marketing). We do not see this as sustainable and should normalise to 12% for the full year.

Click on the attachment to read the full report:

Dolat Capital Ramco Systems Q1FY21 Result Update.pdf

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