One of Pakistan’s most prominent software houses, NetSol Technologies Limited (PSX: NetSol), has had a great year but with a small dent.
Latest financial results released to the PSX today showed that NetSol Technologies reported a consolidated after-tax profit of Rs. 1.06 billion, up by a massive 231.25% for the year ended on June 30th, 2018, as compared to a profit of just Rs. 320 million in the same period last year.
Earnings per share increased to Rs 11.89 from Rs 3.58 in following period but it showed loss per share in the 4th quarter of the year.
It also announced a cash dividend of Rs 2.50 for the year ended June 30, 2018 i.e. 25%.
The company posted revenue of Rs 4.28 billion in FY18, which was up by 9.18% from Rs 3.92 billion in the same period last year. Overall the gross profit was increased to Rs 1.93 billion, up by 55.65% from Rs 1.24 billion.
More help came in from ‘cost of revenues’, which have been slightly reduced in this fiscal year. NetSol earns bulk of its revenues from overseas sales of its software products and services.
The other income grew to Rs 537 million this year as compared to Rs 290 million in the previous year.
Overall the 4th quarter was a big disappointment as the company posted a huge loss of Rs 160 million as compared to same period last year and showed a loss per share of Rs 1.79 which was a bit surprising. This was a huge dent to the earnings of the fiscal year.
Aftermath of the result was an impact on its share price. Since two days, its share price has hit its lower circuit breaker and is currently trading at Rs 130.96, down by 5%.
“Fiscal 2018 has been a turnaround year for sales and NETSOL as a whole with several tier-one clients entering into new IT selection processes and Ascent making the shortlist in each occurrence,” added President and Head of Sales Naeem Ghauri.
“After closing out the previous fiscal year and starting the current one with back-to-back wins in China, we are upbeat and motivated to capitalize on this building momentum. We remain confident in our ability to finish strong and secure further wins in fiscal 2019.”