March 18, 2021 (MLN): Systems Limited (SYS), the largest IT exporter of Pakistan, recently held its analyst briefing to discuss CY20 results and future roadmap.
To recall, the company posted earnings of Rs.2.16 billion translating into an EPS of Rs 17.78 for the year ended December 31, 2020, showing a growth of 38%. Along with the result, the company paid a final cash dividend for the year at Rs. 3.5/-per share i.e. 35%. as well as a 10% bonus issue.
This growth was majorly witnessed in North America and Europe, whereas revenues in Pakistan grew moderately and that in the Middle East declined by 1% YoY.
Covid-19 has created global opportunities for the company as offshore services and outsourcing have grown significantly while onshore business has declined. According to the management, 80% of the revenues are export-based as of YE20, the research report by BMA highlighted.
The company has also indicated that acquiring skilled foreign labor is no longer an issue after Covid-19, as offshore work has become the new norm. Hence, the management has been hiring skilled resources from across the world.
Shedding light on future growth, the management stated that the North American market will be a key focus for the company due to its strong customer base in addition to the Middle East Market. Dubai expo 2020/2021 is expected to open opportunities to expand business along with opening up of the Qatar market, Topline research added.
According to the key takeaways of the briefing covered by Intermarket research, the management also said that SYS is currently exploring a number of options for growth: market expansion, global integration, and partnership (as large companies await outsourced work), as well as in-organic growth.
Talking about the recently proposed changes to the Finance Bill, the company said the bill will have no material impact on the IT exporter sector.
