Netsol Technology, one of the few leading Pakistani companies with operation in foreign markets, has been successful to revive its profitability from huge losses as it posted a profit of Rs 4.72 million in the closing financial year of 2014-15.
The company saw a massive decline in the losses which were recorded at Rs 475 million by the end of previous financial year 2013-14, according to financial results disclosed to shareholders.
The profit was eaten by different expenses under the heads of marketing and advertising, administrative and financial and miscellaneous which stood at Rs 804.661 million which also overshadowed its profit before tax standing at Rs 43.944 million.
Netsol Technology, listed in Pakistan Stock Exchange and New York Stock Exchange, showed encouraging signs with revenues showing a handsome growth of 41 percent in the financial year ending by June 2015. Its earning of financial year increased to Rs 2.31 billion as against of Rs 2.34 billion reported in the previous financial year.
Overall, the balance sheet showed optimism that Pakistanis biggest company is coming on track of growth once again in the light of financial numbers disclosed by the company.
In July, Netsol Technologies won a $ 1million project to implement Contract Management System of NetSol Financial Suite.
During the year, the sale of NFS had dropped not because of shrinkage of market but due to the announcement of next generation product, NFS Ascent, by NetSol. After the announcement, the prospective customers were more interested in the new version rather than the legacy system.
Salim Ghuri earlier commented on the losses showed in the half year saying the transition of legacy with the next generation product impacted on the revenues and the overall profitability of the company.
Keeping in view the projects of NFS Ascent in pipe, the management kept beefing up its skilled IT resources to hire another 300 software engineers during one year for the delivery of the projects, he said.
The investment also added towards the cost of the sales without having any corresponding revenue. Ghauri said ”This is a calculated move and if we don’t do this, we will not be able to deliver the big projects in the pipeline”.
Good job Mr.Saleem keep it up. I appreciate your efforts.