RAMCOSYSNSEQ2 FY23November 11, 2022

Ramco Systems Limited

5,055words
43turns
2analyst exchanges
6executives
Management on call
Anmol Garg
DAM CAPITAL ADVISORS LIMITED
P.R. Venketrama Raja
CHAIRMAN
Sandesh Bilagi
CHIEF OPERATING OFFICER
R. Ravi Kula Chandran
CHIEF FINANCIAL OFFICER
Gayathri R
VP FINANCE
Vijayaraghavan Ne
COMPANY SECRETARY
Key numbers — 40 extracted
rs,
rted seeing the newer areas in aviation. Probably that is also going to accelerate in coming quarters, where we also see good amount of traction, good amount of buildup there. It is a matter of closure,
25 million
ence Call - 5 - Question: Are you confident of scaling even beyond USD 25 million order booking per quarter in the next year or next two - three years or will it be much above that
181 million
and what exactly is the pipeline as of now? Answer: Unexecuted order book you're seeing is USD 181 million cumulatively. This is roughly a five- year TCV what we consider in the unexecuted order book. Que
580 million
Call - 7 - Answer: That's in the range of around USD580 million. That is the total order book what we are chasing. Question: This quarter, we have booked reven
16 million
l order book what we are chasing. Question: This quarter, we have booked revenues of around 15, 16 million US dollars. For next two quarters, what would be your guidance? I mean, how much revenue can we bo
100 million
order book, I don't understand the maths out here because this number continues to be upwards of $100 million for ages now, but it's not getting into the revenue recognition or is there something like we are
50%
eason the revenue adjustment you'd see from the previous periods in 2017 and 18, roughly more than 50% used to be the licenses, what we used to book but that is not good for the company in long run, be
178 million
inue to have on-premise businesses. On the unexecuted order book, the maths will work out. We had 178 million last quarter end as unexecuted and we have booked 17 million this quarter. So, that makes us 195 m
17 million
ook, the maths will work out. We had 178 million last quarter end as unexecuted and we have booked 17 million this quarter. So, that makes us 195 million and out of that we have taken the revenue of 15 millio
195 million
llion last quarter end as unexecuted and we have booked 17 million this quarter. So, that makes us 195 million and out of that we have taken the revenue of 15 million. So, closing order book is around 180 mill
15 million
7 million this quarter. So, that makes us 195 million and out of that we have taken the revenue of 15 million. So, closing order book is around 180 million. So, what we given in the fact sheet is 181 million.
180 million
million and out of that we have taken the revenue of 15 million. So, closing order book is around 180 million. So, what we given in the fact sheet is 181 million. So, the number is matching. Transcript - Ra
Guidance — 20 items
Question
qa
“Are you confident of scaling even beyond USD 25 million order booking per quarter in the next year or next two - three years or will it be much above that, because we have not crossed that.”
Answer
qa
“But that will also eventually iron out in next two quarters, that you will be start seeing revenues, catching up with the equivalent of order booking.”
Question
qa
“For next two quarters, what would be your guidance?”
Answer
qa
“Revenue guidance per se, we normally don't give.”
Answer
qa
“But we have indicated that the order booking will be better than the previous two quarters.”
Answer
qa
“For the year also, it will be too much to expect even internally.”
Answer
qa
“We have said even in the earlier con call that our first target is to bring up the business to the normal, i.e., the pre COVID time order booking and only a year after that can be a better one.”
Answer
qa
“And that is the reason the revenue adjustment you'd see from the previous periods in 2017 and 18, roughly more than 50% used to be the licenses, what we used to book but that is not good for the company in long run, because it will be perpetual licenses you will sell and you will not be able to get the high recurring revenues.”
Question
qa
“Are we talking this for HCM business also, because ever since this business has been separated as into a separate Business Unit and the revenue data has been given, we have always talked about this business will be very cloud centric.”
Answer
qa
“So, suppose, if it is a five year if we book that will be consumed over the five-year period rather than in any one year.”
Risks & concerns — 5 flagged
or Is our competitive positioning is weak?
— Question
Are we facing any challenge in the work, because we are not able to know the things that are happening behind the scenes.
— Question
That is also having impact of revenue not being exactly commensurate with the number of bookings what we are making.
— Answer
Looking at the performance of HRP business, it’s very difficult to match the commentary with the performance.
— Question
So, are we seeing any delay from the client side because of the micro economic concern?
— Question
Q&A — 2 exchanges
Q
From 2017 we started pivoting our company and its cloud, its HCM and we have divided this into three different business units, Aviation, HCM and ERP. We also started pivoting in terms of going into advanced markets. I'm only seeing the results - So I'm not seeing what is happening behind the scenes, maybe its moving there. Are we not getting our go to market strategy right? Or are we facing a lot of competition or our products are not up to the mark? or Is our competitive positioning is weak? What are the challenges that are not allowing us or maybe as investor I’m not able to see the results
Answer
This we had addressed in the last few investors calls, we can repeat again. One of the major business area is HRP, which basically if we see our competitive positioning is - we are having 65 plus countries payroll we have built on our own and majority of them in the Asia Pacific region, which has a severe impact for us from the go-to market, because the markets were shut and that region used to be the very high order booking region. This region is warrants meeting people and not digitally and remotely, otherwise, you won't be able to close the order. We also had unexpected downtime in our orde
Q
This fact sheet has been prepared by Ramco Systems Limited (the “Company”) for information purposes only and does not constitute, or should be regarded as, or form part of any offer, invitation, inducement or advertisement to sell or issue, or any solicitation or initiation of any offer to purchase or subscribe for, any securities of the Company in any jurisdiction, including the United States and India, nor shall it, or the fact of its distribution form the basis of, or be relied on in connection with, any investment decision or any contract or commitment to purchase or subscribe for any secu
Management
Speaking time
Question
20
Answer
19
Moderator
2
COO
1
Disclaimer
1
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