SYS: Strong tailwind

August 26, 2021 (MLN): System Limited (SYS) has posted a consolidated net profit of Rs1.514billion during the six months for the period ended 30th June 2021, showing a growth of 42% YoY despite recording an exchange loss of Rs41.67 million.

In line with profit for the period, the basic earnings per share increased by 43% from Rs7.92 to Rs11.34.

According to the financial results sent to Exchange, the consolidated revenue grew by 44% from Rs4.56bn to Rs6.55bn. This increase in revenue has been contributed by all regions. Accordingly, the gross profit surged by 57% to Rs2.24bn, expanding gross margins from 31% to 34%.

Meanwhile, cost optimization and efficient working capital management translated into higher operating profits of Rs1.53bn, up by 74% YoY.

However, the other income of the company went down by 68% YoY to Rs 75mn on an account of PKR appreciation that led to exchange losses as 80% of the company’s revenue are exports.

Going forward, the topline of SYS will maintain 30% YoY growth in the next three years mainly due to higher software implementation, cloud-based and BPO services for international clients which have been undergoing rapid digital transformation, a research note of Intermarket Securities (IMS) highlighted.

Copyright Mettis Link News