Shares of Ramco Systems hit their 20 percent upper circuit from ₹341.75 per piece on Wednesday after the company announced to sign a significant multi-million dollar deal with Korean Air, the largest airline in Korea. The agreement involves providing technological support for Korean Air’s new engine maintenance complex.
In an exchange filing, Ramco Systems said it has entered into a strategic engagement with Korean Air, South Korea’s flag carrier and its largest airline, to implement its flagship aviation software, Ramco Aviation Suite at Korean Air’s Engine Maintenance Center.
“The implementation of Ramco’s aviation software will replace multiple legacy systems to streamline operations across current engine shops and planned expansion sites,” the company said in a regulatory filing.
This agreement comes on the heels of Korean Air’s recent announcement of the establishment of its engine Maintenance, Repair, and Rehaul (MRO) facility in Unbuk, near Incheon International Airport. This facility is envisioned to be Asia’s largest engine maintenance plant, consolidating all engine MRO capabilities into a single cluster.
Ramco Systems emphasized that its engine MRO solution will address both Korean Air’s current needs and future expansion plans. This move is expected to strengthen the airline’s aircraft engine maintenance capabilities and strengthen its position in the segment.
“With comprehensive MRO-specific features, and integrated e-publications all on a unified platform, offered as a one-of-a-kind solution, Ramco Aviation will be the technology foundation for Korean Air,” the company added.
In addition, Korean Air’s engine maintenance center will utilize digital enablers such as Mobility through Anywhere Apps, HUBs, Dashboards and other integrations to the ecosystem offerings, all powered by Ramco, the company further emphasized.
Stock Price Trend
The share has gained nearly 27 percent in the last year and more than 17 percent in 2024 YTD, giving positive returns in 2 of the 4 months so far.
It has reached about 29 percent in April so far after a 16 percent decline in March and a 4.7 percent drop in February. Meanwhile, it rose by 13.6 percent in January 2024.
The stock is currently more than 4 percent away from its 52-week high of ₹356.65, hit on February 6, 2024, and has advanced more than 63 percent from its 52-week low of ₹209.10, effective May 17, 2023.
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Published: 10 Apr 2024, 14:07 IST