Systems Limited (SYS) announced the financial result for 1QCY24 whereby the company posted a profit after tax (PAT) of Rs. 1.571 billion in contrast to Rs. 3.879 billion during 1QCY23, down by 59 percent YoY.
This is due to exchange loss during the quarter compared to massive exchange gain in the same period last year (SPLY).
On a sequential basis, the earnings witnessed an uptick of 2 percent QoQ. The company did not announce any dividend payouts to its shareholders for the period in review.
Net sales in 1QCY24 clocked in at Rs. 15.194 billion, up by 42 percent YoY which is on account of 32 percent, 35 percent, and 49 percent YoY growth in technology-related solutions, Banking Financial Services & Insurance (BFSI), and telecommunications services, respectively, Arif Habib Limited said in a brief review.
Gross margins in 1QCY24 arrived at 23.06 percent vis-à-vis 26.08 percent in 1QCY23, which is due to higher energy costs and inflationary adjustments during the quarter.
The company booked an expense of Rs. 57 million in 1QCY24 compared to other income of Rs. 2.552 billion in SPLY amid exchange losses during the quarter against significant exchange gains in SPLY.
Finance cost plummeted by 6 percent YoY, clocking in at Rs. 148 million during 1QCY24 owed to a reduction in the short-term borrowings.
Administrative and Distribution expenses are augmented by 36 percent YoY, which is due to inflationary pressure.
The company booked effective taxation at 11 percent in 1QCY24 vis-à-vis 3 percent in 1QCY23.
SYS posted earnings per share (EPS) of Rs. 5.39 for the three months compared to an EPS of Rs. 13.32 in the same period last year.
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It systems limited performed well but only thing that make results looked negative is exchange loss as compared to exchange profit of last year.
It will go down more because of current management greed of taking maximum profits and not paying to employees policies are changing daily which will impact it badly