Systems Limited has announced its financial results for the year ended December 31st, 2019.
Pakistan’s oldest software house is continuing its growth run as it reported a huge increase of 47.20% in its consolidated profits for the period under review.
The company reported a profit of Rs. 1.56 billion as compared with a profit of Rs. 1.06 billion in 2018.
The profitability of the company increased due to rupee’s depreciation, automation drive by public/private sectors, growing business and better margins from the North America region and positive response from European markets.
The company has posted a 41.55% increase in its revenue as it was posted at Rs. 7.53 billion as compared with Rs. 5.32 billion in 2018.
This growth was attributed to the higher maintenance contracts and higher exports owing to competitive USD/PKR parity. Systems Limited’s financial health improved over the year due to the rupee devaluation and the export rebate which has positively impacted the revenue growth as most of its revenue comes from the exports.
The cost of sales of the company was posted at Rs. 5.16 billion, up by 36.15% in 2019 as compared to Rs. 3.80 billion in 2018. This took the gross profits to Rs. 2.36 billion as compared with Rs. 1.52 billion, showing an increase of 55% in 2019.
Other income of the company was down to Rs. 318 million as compared with Rs. 408 million in 2018.
The finance cost saw an increase of 73.70% owing to an increase in interest rates in the country during the period. Earnings per share of the company increased to Rs. 12.86 from Rs. 8.72.
With over 83% of its revenues being in export, the currency devaluation has helped the company become more competitive in the international markets. The company has developed accelerated assets, products, and solutions that will improve the sales pipeline and bring more sales closures in the future in the global market. It is following similar steps in Europe as well, however, the growth in the Middle East market is stagnant.