Any current/future new fundraising through debt or equity?

Borrowings were Rs.82 crores at the end of last year and Rs.85 crores at the end of December 2019, showing an incremental borrowing of only Rs.3 crores during the current nine months. The company is managing operations by focusing on collections and may not require fresh funding now. There is no mention of planned new fundraising through equity in the document. The company appears to have sufficient liquidity and does not foresee a need for raising money in the near term to manage debt or operations.

Future growth expectations in sales/revenue/volumes?

HR Payroll (HRP) remains the primary growth driver with significant traction and potential, especially due to unique multi-country payroll offerings and partnerships with Big 4 consulting firms. Booking in HRP business grew from USD 5 million (YTD Dec 2018) to USD 14 million (YTD Dec 2019), indicating solid pipeline. ERP is shifting focus to Digital Transformation projects, leveraging AI and automation for efficiency gains; possible surprises from large deals in Asia. Aviation business is stable; not expected to be a major growth driver but maintains consistent revenue with potential uplift if

Future growth expectations in earnings/operating earnings/profits/EPS?

The HR Payroll (HRP) business remains the main growth engine, expected to grow around 20-30%, with no big competition in this segment. Digital Transformation (DT) within ERP is promising, potentially driving surprises in revenue if large deals in the pipeline close, especially in Asia. Aviation business is stable, with a possibility of 10-15% revenue growth if large OEM deals materialize, but it is not expected to be a major growth driver. Order bookings have improved significantly, but revenue recognition lags order bookings due to the business model and package of services. The company aims

Current/ Expected Orderbook/ Pending Orders?

The unexecuted order book as of December 31, 2019, is USD 176.29 million. This figure has slightly increased from USD 168.24 million in September 2019 and USD 166.00 million in June 2019. The order book comprises new orders, renewals, reversals, and adjustments for base foreign currency rates. Booking for the quarter ended December 2019 was USD 29.80 million, showing an increase compared to previous quarters. Business unit-wise bookings: ERP (around USD 2.62-22.65 million in various quarterly figures), HCM (USD 4.61-39.43 million), Aviation (USD 1.77-15.27 million). There is about a ten-opport

Ramco Systems LtdQ3 FY20IT - Software

Ramco Systems Ltd Q3 FY20 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹546P/E: 34.7Market Cap: ₹2.2K CrSector: IT - Software

Management growth scorecard

Revenue

Category 3

Margin

N/A

Fundraise

Order

Yes

Capex

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

HR Payroll (HRP) remains the primary growth driver with significant traction and potential, especially due to unique multi-country payroll offerings and partnerships with Big 4 consulting firms.
Booking in HRP business grew from USD 5 million (YTD Dec 2018) to USD 14 million (YTD Dec 2019), indicating solid pipeline.
ERP is shifting focus to Digital Transformation projects, leveraging AI and automation for efficiency gains; possible surprises from large deals in Asia.
Aviation business is stable; not expected to be a major growth driver but maintains consistent revenue with potential uplift if OEM deals close.
Overall revenue growth could be 25-30% annually if large Digital Transformation orders materialize.
New orders and pipeline expansion are expected to sustain revenue growth, despite short-term impacts like COVID-19 on deal closures.
The company aims for operational excellence, faster delivery, and increased revenue realization from existing and new contracts.

Margin guidance

The HR Payroll (HRP) business remains the main growth engine, expected to grow around 20-30%, with no big competition in this segment.
Digital Transformation (DT) within ERP is promising, potentially driving surprises in revenue if large deals in the pipeline close, especially in Asia.
Aviation business is stable, with a possibility of 10-15% revenue growth if large OEM deals materialize, but it is not expected to be a major growth driver.
Order bookings have improved significantly, but revenue recognition lags order bookings due to the business model and package of services.
The company aims for steady revenue growth from existing deals with faster execution and improved collections.
There is no immediate need for fresh funding; increased earnings will largely come from execution of booked orders.
Risks include the impact of the coronavirus outbreak affecting deal closures and travel in Asia.
EPS growth will likely follow improved execution and scaling of HRP and DT businesses.

See what Ramco Systems Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

Borrowings were Rs.82 crores at the end of last year and Rs.85 crores at the end of December 2019, showing an incremental borrowing of only Rs.3 crores during the current nine months.
The company is managing operations by focusing on collections and may not require fresh funding now.
There is no mention of planned new fundraising through equity in the document.
The company appears to have sufficient liquidity and does not foresee a need for raising money in the near term to manage debt or operations.

Order book

Yes

The unexecuted order book as of December 31, 2019, is USD 176.29 million.
This figure has slightly increased from USD 168.24 million in September 2019 and USD 166.00 million in June 2019.
The order book comprises new orders, renewals, reversals, and adjustments for base foreign currency rates.
Booking for the quarter ended December 2019 was USD 29.80 million, showing an increase compared to previous quarters.
Business unit-wise bookings: ERP (around USD 2.62-22.65 million in various quarterly figures), HCM (USD 4.61-39.43 million), Aviation (USD 1.77-15.27 million).
There is about a ten-opportunity pipeline, with six being large deals that could significantly impact business.
A good pipeline exists, but there are risks due to factors like the coronavirus impacting deal closures in Asia.
Increased bookings, but revenue realization lags due to the spread of order values over time.

See what Ramco Systems Ltd management said on order book — free account, 30 seconds.

Capex plans

- There is no indication of major investments planned for Aviation or ERP business units. - The focus is on Digital Transformation (DT) within ERP, leveraging AI/ML to enhance productivity and customer outcomes. - The company is positioning its ERP with AI/ML capabilities but is not planning significant capital expenditure for it. - There is no mention of new capital raising requirements; borrowings increased slightly from Rs.82 crores to Rs.85 crores in nine months, implying manageable operations without fresh funding. - Strategy centers more on execution and refining sales rather than heavy capital investments. - AI-driven Digital Transformation projects represent a strategic area of operational investment rather than heavy capital outlays. Overall, Ramco Systems is emphasizing efficiency, execution, and digital innovation over large capital expenditures or major strategic investments in physical assets.

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