Netsol made a profit of Rs. 77 million during the nine months of the current financial year 2020-21 despite challenges.
However, the third quarter for the year brought downturns that led the company to post a loss of Rs. 180 million. This drop in net earnings is being attributed to a loss of Rs. 290 million at the foreign currency exchange.
The Pakistani Rupee appreciated in the current quarter compared to an exchange gain of Rs. 229 million in the comparable period. The company is exposed to foreign currency risk on trade debts, some payables, and revenues that are entered in a currency other than the Pakistani Rupee.
The majority of the revenue of the company is in currencies other than the Pakistani Rupee. The company also holds cash and cash equivalents denominated in foreign currencies for working capital purposes. Hence, it could not maintain its sustainable profitability that was recorded as a marked improvement in the first half of the financial year 2021 due to growth in the business and operations of the company as a result of opportunities due to the pandemic.
The company achieved a net revenue of Rs. 1.241 billion as compared to Rs. 1.159 billion during the corresponding period last year. The company has recorded a handsome amount of change requests from its existing customers for enhancement and customization in the systems deployed at their respective sites.
This is a continuous nature of services revenue coming from our existing customers.
Netsol has continued to invest in research and development to continue enabling its diverse clientele worldwide to future-proof its operations. The company’s Innovation Lab continues to work on vital technologies that have gained traction in the global asset finance and leasing space, including AI, Machine Learning, Big Data, and Blockchain.