Q1FY23 net profit jumped 140.98% led by cost optimisation amid moderation in revenue
CYBERJAYA: Ramssol Group Berhad, a leading domestic Human Capital Management (HCM) solutions and technology provider today announced its financial results for its first quarter ended 31 March 2023 (Q1FY23).
Ramssol reported a solid improvement in its bottom line during the quarter under review, as gross profit strengthened to RM4.28 million, a 12.63% increase against RM3.80 million in the comparative quarter ended 31 March 2022 (Q1FY22). This came on the back of the Company’s ongoing cost optimisation initiatives which saw a marked decrease in its cost of sales led by its sales and marketing expenses, despite a moderation in its revenue. Corresponding, profit after tax for the quarter under review rose significantly to RM2.00 million, a 140.96% jump from RM0.83 million recorded in Q1FY22.
For the quarter under review, the Company reported a revenue of RM6.45 million. Despite lower year-on-year sales generated from the provision of HCM solutions, student management solutions and HCM technology applications in Malaysia, Ramssol’s bottom line performance remained highly resilient due to improving operating efficiencies within the group.
Based on geographical segmentation for Q1FY23, Malaysia remains the main contributor to the Company’s total revenue, contributing 48.78% or RM3.14 million, followed by Thailand at 25.97% or RM1.67 million, Indonesia at 14.02% or RM0.90 million, and Singapore at 11.23% or RM0.72 million.
Group Managing Director and CEO, Datuk Seri Cllement Tan Chee Seng said, “Despite the challenges in the global economic landscape, we are pleased to report an encouraging start to the year, as we maintained our financial resilience and cost optimisation efforts to continue to deliver improved profitability. Moving forward, our focus on expanding our offerings and strengthening partnerships will drive the group’s revenue growth. With the completion of the acquisition of Infinite Loop Media Sdn Bhd, we are confident of executing of our growth strategy with greater agility, as we continue to deploy our technical capabilities and exceed our clients’ expectation.”
Earlier this month, Ramssol had, via its wholly-owned subsidiary, RAMS Solutions Sdn Bhd, entered into a collaboration agreement with Axiata Digital Capital Sdn Bhd, a subsidiary and fintech arm of Axiata Group Berhad which powers Boost – one of Malaysia’s leading providers of e-wallet solutions – to promote and market Boost Credit’s financing products.
Together with the recent incorporation of a new wholly-owned subsidiary, RAMS Fintech Sdn Bhd, Cllement added that RAMS Fintech will develop and provide complementary support services to RAMS Solutions incidental to the implementation of the said collaboration agreement, principally in financial technology, mobile application, electronic commerce, information systems integration, telecommunication network administration, database administration and integration.
According to Cllement, this will eventually allow Ramssol to offer Boost Credit’s financing products and solutions as set out under the collaboration agreement, as well as other products from the latter, which may include (but not limited to) employee financing, through a streamlined platform that will cater to the specific needs of SME and its people. This, he highlights, represents Ramssol’s commitment to support the growth of the SME ecosystem, which makes up most businesses in Malaysia, and is also in line with the group’s ongoing strategy after having successfully penetrated the SME market via its HCM solutions.
“Over the past several months, we have been very focussed on expanding our partnerships and this has cast a spotlight on our collaborative prowess across the industry. With the successful integration of Infinite Loop Media into the group, we are well-positioned to capitalise on growth opportunities in the HCM solutions, financial technology, marketing technology and mobile application, among others. We have a proven track record and are committed to maintaining our positive momentum as we continue to innovate and grow,” added Cllement.