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. 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. 

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.

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.

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