One of Pakistan’s most prominent software houses, NetSol Technologies Limited, has announced its financial results for the half-year (FY19-20).
The company incurred a loss of Rs. 49.87 million as compared with a profit of Rs. 666.96 million recorded in the same period last year due to an increase in other operating expenses, which was due to the stability of dollar and rupee parity. This comes after an impressive run in FY19. The sales of the company were posted at Rs. 2.58 billion, which were almost flat compared with Rs. 2.61 billion reported last year.
NetSol’s cost of revenue was up by 7.80% to Rs. 1.66 billion as compared with Rs. 1.54 billion recorded in the same period last year. This took the gross profit to Rs. 921.07 million, down by 13.11% versus Rs. 1.06 billion last year.
Furthermore, the company’s selling and promotional expenses were posted at Rs. 272 million and administrative expenses were increased to Rs. 395.47 million as compared with Rs. 364.92 million. The rise in promotional expenditure is because it has to be continually done overseas in order to secure future leads for software licenses and products.
The other income of the company decreased by 13.28% to Rs. 314.78 million from Rs. 362.97 million.
Other operating expenses soared massively to Rs. 446.60 million, up 485.17% as compared to Rs. 76.32 million posted last year. This was due to currency exchange loss resulting from appreciation in Pakistani Rupee against the US dollar in the Jul-Dec 2019 period.
NetSol also recorded share of loss from associate amounting to Rs. 38.43 million compared to NIL in the corresponding period. Loss per diluted share was posted at Rs. 0.56 compared to earnings per diluted share of Rs. 7.43 in the corresponding period of last fiscal year.
At the time of filing this report, NetSol’s shares at the PSX were trading at Rs. 61.75, down by Rs. 3.30 or -5.07% with a turnover of 987,000 shares on Thursday.