Pakistan’s oldest software house Systems Limited has announced its financial results for the first half of 2021.
Systems Limited has been consistent in its financial performance with a 42 percent growth in profits for the period of January to June 2021, as compared to a similar period last year.
According to the financial results announced to PSX, the net profit for the company increased from Rs. 1.067 billion to Rs. 1.514 billion.
During the period under review, standalone revenue grew by 47% over the same period last year from Rs. 3.388 billion to Rs. 4.992 billion. Gross profit and operating profit increased by 53% and 61% respectively, delivering a leveraged operating performance for the company.
However, as a consequence of currency fluctuations, net profit for the period has been diluted by an exchange loss of Rs 32.59 million with a net increase of 31% achieved from 1.029 billion to Rs. 1.349 billion.
Basic and diluted earnings per share both increased by 30% in line with profit for the period.
The increase in revenue has been contributed by all operating regions, including North America and European countries, Middle East countries, and the Pakistani market.
The cost optimization and efficient working capital management translated into higher operating profits.
The company’s basic and diluted earnings per share increased by 43 percent and 42 percent, respectively, in line with profit for the period.
Basic earnings per share were reported at Rs. 9.83 compared to Rs. 7.55.
SYS’s scrip at the bourse was closed at Rs. 671.33, up by Rs. 41.32 or 6.56%, with a turnover of 299,400 shares on Thursday.
The company is continuing to see robust demand in the digital space globally, which is aligned with the company’s strategy in the areas, including Digital and Business transformation (largely Digital Commerce, Enterprise Resource Planning (ERP), Customer Relationship Management (CRM)) along with strategic alignment on Cloud and Data.
Systems Limited is also actively pursuing and heavily investing in these core competencies. It has started a new business unit, the Digital Infrastructure Services (DIS), to cater to the heavy demand in Infrastructure, Cloud, and Security Services.
In the North American market, the company’s investment in business solutions and products continues to add new logos.
Systems Limited has also signed up a new partnership with SAP as it will continue to invest in building a core team for SAP business as there are a lot of opportunities in the domestic market, as well as in the Middle East and other markets.
Since most of the existing customers of the company in these markets are using SAP, so this will open up business opportunities to cross-sell and upsell the SAP services to the customers and in addition, will open up new ERP implementation deals.
The company continues to see more opportunities in the European market for skilled offshore resources. It is currently exploring various options to invest through its subsidiary Systems Ventures.