Ramco Systems share hits 20% upper circuit on deal with Korean Air

Shares of Ramco Systems hit its upper circuit limit of 20% on Wednesday after the aviation software developer signed a “multi-million-dollar” deal with Korea's largest airline Korean Air. As per the deal, Ramco will implement its flagship aviation software, Ramco Aviation Suite, to transform the new engine maintenance complex of Korean Air in Unbuk, near Incheon International Airport, claiming to be the largest engine maintenance plant in Asia. The company, however, didn’t reveal the financial transaction involved in the deal.

Following this announcement, shares of Ramco jumped 20% to hit an intraday high of ₹341.75, while the market capitalisation climbed to ₹1,210.5 crore. Early today, the smallcap stock opened higher at ₹307.25, up 7.9% against the previous closing price of ₹284.80 on the BSE.

At the current level, Ramco Systems shares trade 4% lower than its 52-week high of ₹356.65 touched on February 6, 2024, and 63% higher than its 52-week low of ₹209.10 hit on May 17, 2023. The stock has risen 51% in the last one year; 11% in six months; and 15.5% in the calendar year 2024.

In an exchange filing today, Ramco Systems says that Korean Air has selected the company for tech support at its new engine maintenance complex. This engagement comes close on the heels of the airline announcing the construction of its new engine MRO (maintenance, repair and overhaul) facility in Unbuk, consolidating all engine MRO capabilities into a single cluster. The airline currently conducts MRO work on six engine models, and with this expansion, Korean Air is looking to add three more engine types to its aircraft family.

“The implementation of Ramco’s Aviation Software will replace multiple legacy systems to streamline operations across current engine shops and planned expansion sites…In addition, the airline’s engine maintenance center will also benefit from digital enablers such as Mobility via Anywhere Apps, HUBs, Dashboards and other integrations to the ecosystem offerings, powered by Ramco,” the release notes.

Ramco’s engine MRO solution will cater to the current and future expansion plans of the airline, thereby strengthening the carrier’s aircraft engine maintenance capabilities and solidifying its presence in the MRO segment, the release highlights.

Chan Woo Jung, Vice President and Head of Maintenance & Engineering Division at Korean Air, said “Airlines today are grappling with the need for efficient engine maintenance. These needs prompted us to embark on our ambitious journey to build Asia's largest engine maintenance complex and expand our capabilities to service more engine types.”

“In our search for the best Aviation MRO Software, Ramco Aviation emerged as an ideal choice. The implementation of Ramco’s Engine MRO capabilities will help us enhance our facility's efficiency and precision and set new standards in engine maintenance, positioning us as a top MRO provider,” Jung adds.

Sundar Subramanian, CEO, Ramco Systems, says, “We are thrilled to join forces with Korean Air and support them in their expansion journey to emerge as the leading MRO provider, globally…We look forward to empowering Korean Air to deliver unparalleled safety and service excellence to their valued customers.”

As per the company, Ramco’s aviation suite is trusted by 24,000+ users to manage 4,000+ aircraft globally. With 90+ aviation companies onboard, Ramco is one of the leading defense organisations and a major urban air mobility company in the world. 

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