Active Stocks
Wed May 29 2024 15:50:35
  1. State Bank Of India share price
  2. 822.95 -0.96%
  1. Tata Steel share price
  2. 174.20 -0.37%
  1. HDFC Bank share price
  2. 1,507.85 -1.48%
  1. Power Grid Corporation Of India share price
  2. 317.55 1.52%
  1. ITC share price
  2. 430.80 0.44%
Business News/ Markets / Stock Markets/  Ramco Systems shares jump another 13.5% to hit 2-year high, up 44% in April so far – what's behind the rally?
BackBack

Ramco Systems shares jump another 13.5% to hit 2-year high, up 44% in April so far – what's behind the rally?

Shares of Ramco Systems jumped another 13.5% in today's trading session, reaching ₹386.90 apiece to hit a 2-year high. This strong rally has pushed the stock to gain 44% in April so far.

Looking at the company's financials, there was a notable improvement as the net loss in Q3 FY24 narrowed to ₹26 crore, attributed to a decrease in operating expenses. (Pixabay)Premium
Looking at the company's financials, there was a notable improvement as the net loss in Q3 FY24 narrowed to 26 crore, attributed to a decrease in operating expenses. (Pixabay)

After hitting the 20% upper circuit limit in the previous trading session, shares of Ramco Systems, a global aviation software specialist, jumped another 13.5% in today's trading session, reaching 386.90 apiece to hit a 2-year high. This strong rally has pushed the stock to gain 44% in April so far.  

On April 10, the company announced a strategic collaboration with Korean Air, South Korea's flag carrier and largest airline. The partnership entails the implementation of Ramco Aviation Suite, the company's flagship aviation software, at Korean Air’s Engine Maintenance Center.

Also Read: Zomato shares extend gains to a record high; JM Financial raises target price

This engagement follows closely after Korean Air revealed plans for constructing its new engine MRO facility in Unbuk, near Incheon International Airport. The facility claimed to be the largest engine maintenance plant in Asia, consolidates all engine MRO capabilities into a single cluster.

With over 90 aviation organisations onboard, Ramco has emerged as the preferred solution provider for leading airlines, third-party MROs, major Heli-operators, prominent defense organisations, and key urban air mobility companies worldwide.

The company highlighted that the deployment of Ramco’s Aviation Software will replace multiple legacy systems, streamlining operations across current engine shops and planned expansion sites. 

Also Read: Multibagger Stock: Macrotech Developers yielded 160% return in a year, gained over 400% in 3 years

Offering comprehensive MRO-specific functionalities and integrated e-publications, all on a unified platform, Ramco Aviation is poised to serve as the technological backbone for Korean Air, it added. 

Further, the company said that the airline’s engine maintenance center will leverage digital enablers such as mobility via Anywhere Apps, HUBs, dashboards, and other integrations to the ecosystem offerings, all powered by Ramco.

Ramco’s robust engine MRO solution will address both the current and future expansion plans of the airline, enhancing its aircraft engine maintenance capabilities and reinforcing its foothold in the MRO segment, it stated. 

In February, Ramco's Malaysian client, HAS International, successfully launched the Ramco Aviation Suite tech platform.

Also Read: Vodafone Idea to launch 18,000 crore FPO at 10-11 price band

Looking at the company's financials, there was a notable improvement as the net loss in Q3 FY24 narrowed to 26 crore, attributed to a decrease in operating expenses. This marks a significant improvement compared to the net losses of 50 crore in Q3 FY24 and 146 crore in Q2 FY24. 

However, revenue from operations remained stagnant at 128 crore during the third quarter.

Additionally, during the quarter, the company established strategic partnerships with prominent service firms such as Deloitte Touche, Tohmatsu India LLP, and BDO India. These collaborations aim to capitalise on Ramco's innovative payroll platform.

 

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 12 Apr 2024, 12:47 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started