NETSOL earns Rs1.38bn in FY24, declares Rs3 DPS

September 12, 2024 (MLN): NetSol Technologies Limited (PSX: NETSOL) reported a modest increase in earnings for FY24, with a rise of 7.7%, reaching Rs1.38 billion (EPS: Rs15.76) compared to Rs1.29bn (EPS: Rs14.63) in the same period last year.

The Board of Directors of the company has declared a final Cash Dividend for the year ended June 30, 2024 at Rs3 per share.

Going by the results, the company's top line marked an increase of 21% to Rs9.28bn as compared to Rs7.67bn in SPLY.

Conversely, the cost of sales decreased by 5.4%, and combined with the rise in sales, this led to an 84.1% increase in gross profit, which reached Rs4.16bn in FY24.

Accordingly, the gross margins improved to 44.9% as compared to 29.5% in SPLY.

On the expense side, the company reported rise in all its sub heads with administrative expenses rising 4.7% YoY to Rs1.42bn, selling and promotional expenses increasing 27.7% YoY to Rs855.32m, and other operating expenses surging 26.6% YoY to Rs692.88m.

Further narrowing the impact of sales growth on the bottom line was a 66.5% drop in other income, which amounted to Rs674.01m in FY24.

The company’s finance cost grew by 64.8% and stood at Rs313.78m as compared to Rs190.36m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs170.51m against the Rs192.51m paid in the corresponding period of last year, depicting a decrease of 11.4%.

Amount in thousand except for EPS

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