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Tuesday, Jun 25, 2002

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Ramco Systems slips into red

Our Bureau


Mr P.R.Venkatrama Raja, Vice-Chairman, Managing Director and CEO, Ramco Systems (right), and Mr Girish A. Menon, Vice-President, Operations, at a press conference in Chennai on Monday.

CHENNAI, June 24

RAMCO Systems Ltd has reported a net loss of Rs 8.76 crore, on a total income of Rs 98.52 crore, during the year ended March 31, 2002, as against a net profit of Rs 1.04 crore on a total income of to Rs 126.97 crore the previous year.

The total expenditure reduced to Rs 96.84 crore (Rs 107.70 crore). The company saw a rebound during the fourth quarter, and reported a net profit of Rs 5.98 crore (Rs 49.54 lakh), on a total income of Rs 21.07 crore (Rs 32.65 crore).

The company's board of directors has not recommended any dividend for 2001-02.

"We expected much more severe crunch," the company's Vice-Chairman, Managing Director and CEO, Mr P.R. Venkatrama Raja, told newspersons here. Due to the recession in the industry, sales from small and medium size companies got significantly reduced. Further, some of the clients postponed their decision making, he added.

Mr Raja said that during 2002-03, the company would turnaround, and make a marginal profit. This would be possible with the launch of the company's ERP-II suite of products, Ramco iEnterprise Series 4.0 later this year. The company has struck two deals, one from Indian Airlines for its fleet management, and another from the US-based Bemis. Each order is worth about a couple of million dollars. Three or four more orders are in the pipeline, he added.

The company has used about 400 of non-billable employees on developing the product. "We expect to bring about 250 of them into the regular stream from November," he said. The company has about 800 employees on the bench, he added.

When asked on the tie up with Boeing, Mr Raja said in a few months, a new product would be launched targeted most at the airline industry. While Ramco would market the product in India, Boeing would target the rest of the world. The company would pay a percentage of the revenue from the product to Boeing as royalty, he said.

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