Systems Limited (SYS) today unveiled the financial result for 9MCY24 posting a consolidated profit after Tax (PAT) of Rs. 5,432 million (EPS: PKR 18.6) against Rs. 7,146 million (EPS: Rs. 24.5) in 9MCY23, down by 24 percent YoY.
Whereas, consolidated earnings in 3QCY24 clocked in at Rs. 2,188 million (EPS: PKR 7.5), up 18 percent YoY.
Net sales in 9MCY24 clocked in at Rs. 48.3 billion, up 29 percent YoY. Moreover, the topline grew by 22 percent YoY to Rs. 17.2 billion during 3QCY24, mainly on the back of dollarized revenue growth in all verticals.
During 9MCY24, gross margins declined by 430bps YoY. This reduction in gross margins was predominantly driven by inflationary adjustments in compensation, rising energy costs, and a lower average exchange rate. The gross margins during the quarter declined to 25 percent, down by 290bps YoY due to the aforementioned reasons.
Administrative and distribution expenses grew by 15 percent/ 26 percent YoY/QoQ during the outgoing quarter, possibly due to inflationary pressure and an increase in the resource pool.
Other income for the quarter clocked in at Rs. 186 million during the quarter, up by 4 percent YoY due to interest income from subsidiaries and an increase in cash and cash equivalent.
During 3QCY24, finance costs declined by 60 percent YoY while down by 30 percent QoQ, owing to lower short-term borrowings.
The company booked effective taxation at 9.9 percent in 3QCY24 vs 6.4 percent in SPLY. This increase in taxation was on the back of higher tax rates applicable in the UAE region from this year.