Ramco Systems Limited · NSE:RAMCOSYS
Ramco Systems — Q2 FY2021 Earnings Presentation
34 slides from Ramco Systems's earnings presentation, Nov 9, 2020
Slide 1: Disclosure under Regulation 30 cover letter
November 09, 2020 National Stock Exchange of India Ltd BSE Ltd., Exchange Plaza, 5th Floor Corporate Relationship Department Plot No:C/1, G Block Phiroze Jeejheebhoy Towers Bandra Kurla Complex, Bandra (E) Dalal Street, Mumbai – 400 001 Mumbai – 400 051 Scrip: 532370 Scrip: RAMCOSYS Dear Sir/Madam,
Slide 2: Debrief of Analysts & Investors call for Q2/2020-21
Debrief of Analysts & Investors call for Q2/2020-21, Held at 5.00 pm on Wednesday, 4th November 2020 - thro Microsoft Teams From Ramco Systems Limited, Mr. P R Venketrama Raja, Chairman, Mr. Virender Aggarwal, Chief Executive Officer, Mr. R Ravi Kula Chandran, Chief Financial Officer, Mr. Rohit Math
Slide 3: Presentation on HR & Payroll business
Presentation by Mr.Rohit Mathur on HR & Payroll business: Mr. Rohit Mathur shared a presentation on HR & payroll business unit and explained thus. The presentation is enclosed as Annexure 1. HRP Journey Set up as an independent business unit in FYI4, it has been growing at a 30% CAGR. The business i
Slide 4: Aggregators vs. Ramco's Platform
Aggregators vs. Ramco’s Platform: We say we have a huge potential to grow as a business. It's also important to look at what makes us unique and what makes us different from other players in the market. There are enough payroll vendors out there. The unique thing about us is that we have a consolida
Slide 5: Some Trends
Some Trends: Some of the early trends that we are seeing right now, which makes us believe that there's a strong foundation that's getting laid onto this business is the fact that we are moving more and more towards annuity or recurring business, which means we will not be sort of affected by busine
Slide 6: Recurring revenue question
First half revenue is Rs.300 crs, just wanted to know in this how much would be annuity based that will keep recurring, irrespective of whether any new business is brought in – which could be a bonus? We have Recurring revenue of 37%, but that is not the number that will happen without a new order.
Slide 7: Order wins and travel costs Q&A
How many order wins were large in size? 65% of the order wins were more than US$1 million. There were smaller orders, but from global multinationals and that's the reason they took order from them. Only two clients – one in India and the other in Malaysia – are not very well known. Overall the natur
Slide 8: Aviation business Q&A
Because of COVID, we were not expecting this to happen. However, completeness of the software and the richness of the software has been appreciated by clients. We signed two of the world's largest OEMs as clients - people who manufacture aircrafts. This business will help us more. Everybody wants mo
Slide 9: Implementation pricing and subscription model Q&A
implementation price for any country would be three to four months of a setup fees that we would charge on the monthly subscription amount. In terms of the pipeline, is it predominantly managed services or more of a subscription revenue model? We are now seeing a shift more towards a per employee pe
Slide 10: Revenue accounting Q&A
In the pay per use - the subscription model, monthly we book the revenue. The costs are automatically accounted. The costs will be two portions. One is the hosting cost, and there will be the support or the employee cost, which will be charged to the P & L. The development costs are amortsied over t
Slide 11: Seasonality and pipeline Q&A
Any seasonality in our revenue? Understand there cannot be a seasonality in HR, but other than that, in logistics or in defense, any seasonality in particular quarter? Is it evenly distributed throughout the year? Other than Q1, other quarters are normally more evenly distributed. April, May, June i
Slide 12: ERP order booking Q&A
The ERP segment saw the biggest jump in order booking and probably was the driver for our license revenue as well. And we have publicly announced two deals in logistics, and they are big customers. But is it the bulk of this ERP booking has come from these two deals, or there are several smaller dea
Slide 13: AI & ML usage Q&A
AI & ML is being used as a marketing tool to help improve the efficiency in, say payable processing, receivable processing, automatically generating the comfort and so on. HRP Business unit is deploying in this in payroll processing team in a very significant manner and rolling out Anomaly engine no
Slide 14: Implementation times and guidance Q&A
Now it's starting to improve. In HRP business execution, our implementation times used to be taking months, sometimes eight-nine months. Now, with a lot of automation and a lot of packaging and execution, execution times have been cut by 60-70% and now it's about two - three months and some implemen
Slide 15: SBU HRP Updates
lraMCO SBU HRP Updates
Slide 16: HRP Journey
HRP Journey… 35 30 30 30 25 23 20 19 17 15 10 9 5 5 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020
Slide 17: Solution Offering
Solution Offering Time & Multi-Country Employee 3rd Party Deployment Core HR Attendance Payroll Benefits Integrations models Organization Schedule Gross & Net Time Input On Premise Masters Management Pay Calculation Compensation Device Integration Employee Overtime Setup Retroactive Pay Leave Financ
Slide 18: Global Payroll coverage across 50+ countries
Global Payroll coverage across 50+ countries and counting… Ireland UK Kazakhstan China Turkey Cyprus Iraq South Korea Lebanon USA Egypt Jordan Kuwait Nepal Japan Bangladesh New Zealand Morocco Bahrain Macau Algeria Pakistan Taiwan Saudi India Hong Kong UAE, Qatar Arabia GCC Myanmar Mauritania Oman V
Slide 19: Large MNCs with multi-country payroll
Large MNCs with multi-country payroll 11000+ Employees 44000+ Employees 14000+ Employees across 18 countries across 19 Countries across 7 countries 19000+ Employees 23000+ Employees 60000+ Employees across 6 countries across 15 countries 13000+ Employees 100,000+ Employees 69000+ Employees across 3
Slide 20: The Global opportunity
The Global opportunity The global standalone payroll services market will grow “4.4% annually, to reach “$24.6bn by 2023 Global Payroll Services Market Size by Geography ($m) 30,000 25,000 20,000 5,000 LATAM APAC mms EMEA mam North America Total Market Source: Nelson Hall 2022 2023 Research 2019 r a
Slide 21: Well Poised to become leader
Well Poised to become leader 40% aa 30% canna nD 20% Ge: Resources: 10% 5% a Mo cloudpay NEEYAMC. SS eae? Wy SALARIS ‘ramco H adamG Ascender EXCELITY ~~ i-admin >, @iiPay si @medis “ —-PAYSPACE IERCANS Source: Everest Research 2020
Slide 22: Aggregators VS Ramco's Platform
Aggregators VS Ramco’s Platform • Global platform, local compliance • Single Code base for 50+ countries Your Global Payroll is as strong as your • Consolidated global view weakest Payroll vendor! • Flexible Delivery model • AI / ML powered payroll engine
Slide 23: Payroll Bureau – Compliance owners
Payroll Bureau – Compliance owners Partner with Taxation service providers Country Regular monthly updates w.r.t to Payroll based related Statutory changes Services availed for specific assignments / Independent projects Consultants Research on Payroll rules and regulations Manage other Se
Slide 24: Partnership Engine as a force Multiplier
Partnership Engine as a force Multiplier Big 4 Consulting firms Copyright 2020 Ramco Systems Limited. Information subject to change. All rights acknowledged.
Slide 25: The TENETS on which our Solutions are getting designed
The TENETS on which our Solutions are getting designed • Zero UI • Artificial Intelligence & Machine Learning • Frictionless Computing • Anticipatory Computing • Event-driven Notification (ANA) Copyright 2019, Ramco Systems Limited. Information subject to change. All rights acknowledged.
Slide 26: Some Trends: Recurring vs Non-Recurring Revenue
Some Trends Recurring Vs Non-Recurring Revenue HRP REVENUE Recurring 51% 23% % SHARE OF FY/1516 % SHARE OF H1/2021 Copyright 2020, Ramco Systems Limited. Information subject to change. All rights acknowledged.
Slide 27: Some Trends: Deal Mix
Some Trends Deal Mix By Order Value 68% 70% 60% 50% 35% 40% 30% 20% 11% 10% 0% 0% >1M <0.25M 2013 H1 20-21 Copyright 2020 Ramco Systems Limited. Information subject to change. All rights acknowledged.
Slide 28: Global Agri major trusts Ramco
Global Agri major TRUSTS Ramco
Slide 29: Global Top 10 Dairy company trusts Ramco
Global Top 10 Dairy company TRUSTS Ramco
Slide 30: Global Top 5 Logistics major trusts Ramco
Global Top 5 Logistics major, TRUSTS Ramco 15 countries – 1 Platform
Slide 31: Fortune & Healthcare major trusts Ramco
Leading Fortune 500 & Healthcare major, Trusts Ramco
Slide 32: Leading Beverage and Food major trusts Ramco
Leading Beverage and Food major Trusts Ramco 15 countries – 1 Platform
Slide 33: Thank You
contact@ramco.com Thank You www.ramco.com Copyright 2020, Ramco Systems Limited. Information subject to change. All rights acknowledged. The contents and information contained in this brochure are intended for general marketing purposes only and should not be relied upon by any person as being compl
Slide 34: Fact Sheet as on 30th September 2020
FACT SHEET AS ON 30TH SEPTEMBER 2020 CONSOLIDATED INFORMATION Figures in USD Million, except where stated otherwise Quarter Ended Half Year Ended Year Ended Sep-20 Jun-20 Mar-20 Dec-19 Sep-19 Jun-19 Mar-19 Dec-18 Sep. 30, Sep. 30, Mar.31, Mar.31, Mar.31, Mar.31, 2020 2019 2020 2019 2018 2017 Unaudit