NetSol Technologies, on Wednesday, announced the financial results for the half year ended December 31, 2018. The company reported a profit of Rs. 666 million, up 9.54% compared to Rs. 608 million in the corresponding period last year.
The revenue of the company clocked in at Rs. 2.61 billion for the half year, which was up 33.85% against Rs. 1.95 billion in the same period last year. Netsol drives nearly half of its income from IT exports.
The cost of revenue increased to Rs. 1.54 billion from Rs. 1.10 billion in the corresponding period, taking the gross profit to Rs. 1.06 billion. It reported a growth of 25.15% in its gross profits.
Netsol’s focus has been on promotion and deliveries of its lease-finance software and services within key markets of the Asia-Pacific region.
That explains the associated spend (selling & promotion expenses) for the half year, which went up by 55% to Rs. 263 million while its administrative expenses grew by 37% during the half year to Rs. 441 million as compared with Rs. 322 million in the period under view.
Moreover, other income of the company was reported at Rs. 362 million, up from Rs. 288 million.
Earnings per share of the company increased to Rs. 7.43 from Rs. 6.78 during the half year.
“NETSOL’s total global pipeline remains robust, especially in our APAC region, where we are seeing demand grow for both our products and services,” added President and Head of Sales Naeem Ghauri. “Additionally, we are continuing to benefit from our local business knowledge and strong relationships as many of our competitors struggle to establish a presence in the region. Going forward, we are cognizant of the various, emerging macro-economic challenges in China and will continue to monitor these issues closely.
However, we are still seeing healthy interest from our existing customers who are investing in our systems to derive additional efficiencies that should aid them in addressing potential corrections in their respective markets. Looking ahead to the remainder of the year, we are currently in good positioning on a number of customers ‘shortlists’ for large-scale programs where we believe we have a good chance of success and remain bullish on our forecasts for fiscal 2019.”
Netsol’s script at the bourse closed at Rs. 87.12, down by 4.58 or -4.99%, with a turnover of 2.22 million shares on Wednesday.