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:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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

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

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