NetSol Posts Healthy First Quarter

NetSol today reported its 1st quarter results with revenues of Rs. 424 million (US $ 4.90 million), 4.5 % higher than Rs. 406 million (US $ 4.69 million) a year ago during the same period.

Gross profit in the 1st quarter rose 10.19 % to Rs 267 million (US $ 3.09 million), as compared to Rs 242 million (US $ 2.80 million) reported in the 1st quarter 2009-10.

NetSol said that it reduced its cost of sales during the 1st quarter of 2010-11 to 37 % of revenue as compared to 40 % of last fiscal. As a result, gross margin improved to 63 % compared to 60 % in the corresponding fiscal year.

The company’s net profit margin reduced slightly, reducing 51 %, compared to 53 % achieved a year ago.

Company posted diluted earnings per share of 2.62 Rupees (US $ 0.03), compared to 2.67 Rupees per share (US $ 0.03) reported in the corresponding year of 2009-10.

This slight decrease in net profit margin and diluted EPS is mainly due to donation given in flood relief activities and providing for a receivable from a third party against which the company is in litigation.

Salim Ghauri, Chairman and Chief Executive Officer of NetSol Technologies Ltd. (Pakistan) and President of the Asia-Pacific division of NetSol Technologies, Inc. stated,

We are pleased to announce that NetSol PK closed two significant deals in the captive finance sector of Asia-Pacific region this year. Our recent stream of contract wins demonstrates that NetSol PK continues to generate significant interest and demand for its products and services in the Asia-Pacific region, and our business pipeline gives us a strong foundation for future growth.