Q4 2024 Ramco Systems Ltd Earnings Call Transcript
Key Points
- Ramco Systems Ltd (BOM:532370) reported a revenue of $63.92 million for Q4 FY24, with global consolidated income at $64.41 million.
- The company turned EBITDA positive this quarter, marking a significant milestone in its financial performance.
- Launch of Ramco Payce, a modern SaaS-based platform, has shown promising traction with numerous demo requests and positive feedback from roadshows.
- Secured a record multimillion-dollar deal with Korean Air, one of the largest deals in the company's history, enhancing its market credibility.
- Recurring revenue grew at a healthy pace of 13% year-over-year, with cloud orders contributing 60% of the revenue, indicating strong growth in subscription-based SaaS solutions.
- Despite turning EBITDA positive, the company remains cautious about making forward-looking statements regarding PAT positivity.
- The execution timeline for the Korean Air deal spans five to seven years, indicating a long-term revenue realization period.
- The company faces challenges in expanding aggressively into new markets, focusing instead on existing markets due to resource constraints.
- The defense sector opportunities have a long gestation period, with significant investments yet to yield substantial returns.
- The company is still in the early stages of its turnaround journey, with expectations of accelerated growth only in the next 12 to 18 months.
Ladies and gentlemen, good day, and welcome to Ramco Systems Q4 and FY 2023/'24 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
Thank you, Neerav. Good evening, everyone. On behalf of DAM Capital, we welcome you all to Q4 FY24 conference call of Ramco Systems. We have with us Mr. Abinav Raja, Whole-Time Director; Mr. Subramanian, CEO of the company; and Mr. Sandesh Bilagi, Chief Operating Officer; Mr. R. Ravi Kula Chandran, CFO; Ms. Gayathri, VP Finance; and Mr. Vijayaraghavan, Company Secretary.
I'll now hand over the call to Mr. Abinav for his opening remarks. Thank you, and over to you, sir.
Good evening, and thank you, everyone, for joining the Q4 FY24 earnings call. As you might have already read, we've announced our financial results last evening, and we'll go over the results and highlights on our call today.
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