September 4, 2020 (MLN): Systems Ltd (SYS), Pakistan's largest IT exporter that provides digital transformation, software and consulting services, recently held an analyst briefing wherein the management discussed the latest financial performance as well as the ongoing endeavors. The management also casted light on the impact of covid-19 on IT sector and future prospects of the company.
In its announcement made last week, the company had reported consolidated net profits of Rs 1.06 billion (EPS: Rs 8.73) for six months ended on June 30th, 2020, which was around 22% YoY higher than the profits recorded in same period last year.
According to the report by Intermarket Securities, the management apprised that the company witnessed major growth in North America and Europe (where the euro has recently strengthened against the US$) region, whereas, Middle East and Pakistan grew moderately.
Commenting on its ongoing ventures, the management informed that the company has invested in enhancing compliance of EU GDPR (General Data Protection Regulations). In addition, the company is also aiming to tap African market to spur its growth momentum.
The gross margins in the North American business have dropped to 41% in 1HCY20 from 44% in the corresponding period last year as the company has capitalized on the crisis by recruiting top talent, who have been laid off by other firms, it added.
Since many players took an exit from the market amid pandemic, the company also intends to fully capitalize the demand and supply gap through its expertise.
Casting light on the impact of Covid-19 on company’s business, the management highlighted that the pandemic has opened unique sweet spot for the SYS, as the company has expertise in performing off-shore tasks which is now considered a new norm for world as the appetite for off-shore services and outsourcing has increased notably . Without pandemic, it would have taken much longer time to convince clients about advantages of remote workplaces, the management believed, another report by Insight Securities underlined.
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