1. Ramco Payce traction visibility - by end of Q2 FY25 or H2 FY25 Delivered - At the Q4 FY24 call, management stated that by the end of Q2 FY25 or possibly H2 FY25, they will know what kind of traction Ramco Payce will have in the market. Ramco Payce gathered immense traction, with the largest customer of over 1,00,000 employees migrating seamlessly onto the new platform and over 13 events held across multiple regions generating significantly high demo requests.
2. Logistics product modernization - upgraded TMS and WMS launched in FY26 On track - In the FY25 Annual Report, the Logistics BU aimed to start its product modernization journey in FY26, launching upgraded TMS and WMS built on low-code technology with go-live in 4-5 months. In FY25, the BU achieved rapid go-lives within 4 to 5 months, upgraded its WMS to enhance scalability and integrate advanced automation, and maintained 98-99% SLA compliance.
3. Fundraise deployment - ₹95 crore for debt repayment by May 2023, ₹10 crore for S&M by Mar 2024, ₹20 crore capex by Mar 2024, ₹35 crore GCP by Mar 2025 Partial - In the preferential issue placement document dated 22nd December 2022, the company proposed to deploy ₹95 crore towards debt repayment by Feb-May 2023, ₹10 crore towards S&M by Mar 2024, ₹20 crore towards capex by Mar 2024, and ₹35 crore towards GCP by Mar 2025. As of February 2024, debt repayment, S&M, and capex were fully utilized, but GCP utilization stood at only ₹2.5 crore against the original allocation, with the November 2024 filing showing no further GCP deployment.
4. Triple-digit ($100 million) annual revenue run rate - in the medium term Pending - At the Q3 FY21 call, management stated that if the company can continue to book upwards of $30 million per quarter, there is a possibility of touching a $100 million annual revenue run rate in the medium term. FY26 revenue was $79.9 million and the Q4 FY26 quarterly run rate was approximately $21.5 million, showing progress but the $100 million threshold has not been crossed.
5. EBITDA margin of 25% plus - going forward from Q3 FY21 Missed - At the Q3 FY21 call, management expected EBITDA margin to remain in the range of 25% plus going forward, noting that COVID-related expense savings may partially reverse. OPM collapsed to -0.37% in FY22, remained negative through FY24 at -29.36%, recovered to 12.79% in FY25, and reached 22.61% in FY26, still below the 25% target (SQL).
6. Free cash flow positive - at the earliest from Q2 FY24 Pending - At the Q2 FY24 call, management committed to focusing on profitable growth and getting the company to free cash flow positive at the earliest. Our record holds no explicit disclosure confirming the company achieved free cash flow positivity through the monitoring period.
7. HRP implementation lag reduced to 2-3 months - from 6 months' time (by Q2 FY24) Missed - At the Q4 FY23 call, management stated they were trying to bring HRP implementation lag down from 6-7 months to 2-3 months from 6 months' time, implying a Q2 FY24 target. No disclosure confirming the 2-3 month target was reached has appeared through FY26, and the deadline has lapsed by over two years.
8. Cost optimization - \~$6 million reduction in annual costs, full impact by Q2 FY24 Delivered - At the Q4 FY23 call, management guided that the full impact of cost optimization actions, expecting \~$6 million reduction from salary and non-salary costs on an annual base, will be seen in Q2 FY24. By Q3 FY24, cost reduction programs had yielded approximately $5.6 million of savings on an annualized basis, substantially achieving the $6 million target within one quarter of the deadline.
9. Unexecuted order book conversion rate to reach 20-25% - going forward from Q4 FY23 On track - At the Q4 FY23 call, management stated they expect the un-executed order book conversion rate, traditionally 15% to 20%, to be in the range of 20% to 25% going forward. In Q1 FY24, management disclosed that approximately 25-30% of the unexecuted order book is consumed each year, exceeding the 20-25% target.
10. Revenue recovery - from next year (FY24) onwards it should normalize Partial - At the Q2 FY23 call, management stated that from FY24 onwards revenue should normalize to pre-COVID levels, with the first target being to bring business back to pre-COVID order booking. FY24 revenue was $63.92 million and FY26 revenue reached $79.9 million, approaching but still below the FY21 pre-COVID peak of $84.92 million.
11. Reach operational breakeven then EBITDA profitability - sequentially in coming quarters from Q3 FY23 Delivered - At the Q3 FY23 call, the COO stated the expectation is first to reach operational breakeven and then turn into EBITDA profitability sequentially in coming quarters, later revised at Q2 FY24 to a 4-6 quarter timeline. The company turned EBITDA positive in Q4 FY24, within the revised timeline, and FY26 EBITDA reached $18.9 million or 24%.
12. Operational cash positivity - in coming quarters from Q3 FY23 Pending - At the Q3 FY23 call, the Chairman stated that operational cash positivity would happen very earlier than P&L profitability and they are targeting it immediately in coming quarters. Our record holds no explicit disclosure confirming when operational cash positivity was achieved, though the company turned EBITDA positive in Q4 FY24.
13. Attrition to improve - in the coming quarters from Q4 FY22 Partial - At the Q4 FY22 call, management guided that attrition levels will start improving in the coming quarters and green shoots were showing. Attrition was around 30% in Q4 FY22, and by Q2 FY23 it had declined to around 14% on a quarterly basis, with the year-end rate reaching 18-20% by Q1 FY24, down from a peak of 32-34%.
14. EBITDA of 20% - achievable if desired booking and revenue achieved Partial - At the Q4 FY22 call, management guided that if desired booking and revenue were achieved, they could even touch 20% EBITDA, later revising to target EBITDA breakeven in FY24 and maintain positivity in FY25. OPM was negative through FY24, reached 12.79% in FY25, and finally achieved 22.61% in FY26, roughly 3 years after the conditional target was set (SQL).
15. Zero borrowing maintained - through FY23 Missed - At the Q4 FY22 call, management guided they would remain at near zero borrowing in the coming year, though there might be intermediary short-term borrowing. Borrowings rose to ₹46 crores by Q1 FY23 end and further to ₹93 crores by Q3 FY23 end, breaching the explicit FY23 commitment before being pared down later.
16. Oracle and Workday alliances to show real impact on order book - in the next two quarters from Q2 FY22 Partial - At the Q2 FY22 call, management said they would try to give the real impact in dollar terms on the order book position from the Oracle and Workday alliances probably in the next two quarters. By Q1 FY23, over 70% of $12 million in HRP bookings came from core HR via Oracle or Workday, demonstrating material contribution, though confirmation arrived later than the initial two-quarter horizon.
17. Asia order booking to reach or exceed $14 million - as countries open Delivered - At the Q2 FY22 call, management said they expect Asia order booking to absolutely reach or exceed the previous $14 million mark as countries open post-COVID. In Q3 FY23, out of $27.56 million total booking, around $15 million came from Asia Pacific, exceeding the $14 million target.
18. Aviation business to start growing - by Q4 FY22 or Q1 FY23 Delivered - At the Q2 FY22 call, management said aviation can start really growing at least by Q4 FY22 or Q1 FY23. AAD bookings grew from $17.03 million in FY22 to $30.19 million in FY23, a 77% increase, and the AAD pipeline showed over 75% year-on-year increase in Q4 FY22.
19. Accumulated losses wiped out - within 2 to 2.5 years from Q2 FY22 Partial - At the Q2 FY22 call, management stated accumulated losses may take another two-to-two-and-a-half years to be wiped out, implying a horizon of roughly Q2 FY24 to Q2 FY25. The company reported net losses through FY25, with PAT turning positive at ₹42.06 cr only in FY26, roughly 1-2 years beyond the inferred horizon (SQL).
20. Logistics product ready for market - by Q1 FY23 Delivered - At the Q2 FY22 call, management said the logistics product will be ready for actual rate of risk and team formation by probably Q1 FY23, still five to six months away. By Q3 FY23, logistics was fully operational and had gone live with many customers, including implementations in Australia.
21. Bad debt provision of $1.78 million per quarter - for another four quarters from Q1 FY22 Partial - At the Q1 FY22 call, the CEO stated the bad debt provision of $1.78 million per quarter will be there for another four quarters, a timeline that was repeatedly extended through Q1 FY24. A one-time provision of $15.10 million was taken in Q2 FY24, after which management stated the ghosts of the past have really been retired and provisioning would be less than 2% of revenue from Q3 onwards.
22. ERP product revamp - investment of $2.5-3 million through March 2022, muted revenue Partial - At the Q1 FY22 call, the CEO stated the ERP product revamp is going on right now, revenue will be muted to negative till March, and investment can be $2.5 to 3 million upto March. ERP revenue for FY22 was $23.57 million and bookings were $20.58 million, but our record holds no disclosure of the actual investment spend against the $2.5-3 million target.
23. Workday connector certification - by August 2021, scale-up by March 2022 Delivered - At the Q1 FY22 call, the CEO stated Ramco is hoping to get certification on Workday by August 2021 with phase-wise scale-up to other countries by March 2022. By Q4 FY22, Workday certification had progressed from one country in Q3 to seven countries in Q4, consistent with the March 2022 scale-up target.
24. Oracle connector certification - by August 2021 Partial - At the Q1 FY22 call, the CEO stated the Oracle connector should be certified soon and Ramco will be announcing the ready connector along with Oracle hopefully by August 2021. The Q3 FY22 call confirmed the certified connectors had been built, though no explicit announcement or press release was cited by that date.
25. Return to $24-25 million quarterly order bookings - within one or two quarters Partial - At the Q3 FY22 call, management expected order bookings to bounce back and return to the $24-25 million quarterly range in at least one or two quarters. Q1 FY23 bookings were $21.77 million and Q2 FY23 were $17.32 million; the $24-25 million target was first exceeded in Q3 FY23 at $27.6 million, roughly four quarters after the original deadline.