Systems Limited, one of the leading IT companies of Pakistan, has achieved a landmark by crossing the 500 million rupee mark in profits for the first time in its history, showing a double digit growth of 16.5% on a year-on-year basis.
The rise in profits was possible due to the growth of its sustainable business in Pakistan as well as business expansion by its subsidiaries in overseas markets.
According to the financial statement issued to the Pakistan Stock Exchange, the company’s consolidated profit increased to Rs. 560 million in 2017 from Rs. 481 million recorded in 2016.
The company consistently reported a growth in profits for the last six consecutive years since 2011.
|2011||Rs. 218 million||Rs. 855 million|
|2012||Rs. 327 million||Rs. 1.08 billion|
|2013||Rs. 399 million||Rs. 1.42 billion|
|2014||Rs. 407 million||Rs. 1.92 billion|
|2015||Rs. 405 million||Rs. 2.47 billion|
|2016||Rs. 481 million||Rs. 3.11 billion|
The company recorded negative growth of 8% in its domestic operations in Pakistan which decreased to Rs. 473 million in 2017 from Rs. 515 million unconsolidated profit recorded in 2016. This decline was mainly due to the higher expenses incurred in 2017, which increased by more than 50% to Rs. 488 million from the last year on the account of distribution and administration expenses.
However, revenues from its subsidiaries was largely responsible for its positive and double digit growth. The company’s revenue-to-profit tax ratio stands at 15.4 percent with zero growth from the last year. The company needs to focus on efficiency when it comes to business expansion, with consistent growth in profitability and controlled expenses.
Systems Limited is operating two of its subsidiaries in different countries – E-Processing Systems with major 63% stakes, and TechVista Systems with 100% shares.
E-Processing Systems’ product OneLoad has been successfully integrated with many new service providers and launched many new use cases. As a result, the total monthly transactions of OneLoad have dramatically increased to nearly three (3) million.
Its investment in digital marketing and call center business has started to grow in the last quarter. And it is expected that growth in this vertical will be sustained for the foreseeable future.
The company will be working with the Civil Aviation Authority of Pakistan for a project once the new Islamabad Airport is operational. This project will start immediately once the airport goes operational, with Systems Limited providing three (3) years of support services. It will also invest Rs.250 million in its associated company USS Joint Venture for its project in new Islamabad Airport.
In domestic and regional markets, the company claims that it is strongly aligned with two major Principals – Microsoft and IBM – and that it expected business from their partnerships.
System Limited is also actively pursuing and looking for acquisition opportunities in the market, which can provide it inorganic growth.
System Limited through its subsidiaries is investing heavily in new tools and technologies which include Artificial Intelligence, Machine Learning, Block Chain and Robotics Process Automation. This will pay off results in the future as international markets are moving in this direction, its financial reports stated.
The company business is sustainable and strengthening in North America. E-Processing Systems is aiming to roll out an aggressive marketing campaign during 2018.
The company is expecting growth in its export revenue by virtue of Dollar depreciation, translating into additional profitability.