NetSol profit falls 61% YoY in 9MFY25

April 30, 2025 (MLN): NetSol Technologies Limited (PSX: NETSOL) posted a 61.42% year-on-year (YoY) decline in net profit for the nine months ended March 31, 2025, with after-tax earnings falling to Rs278.86 million from Rs722.84m in the same period last year (SPLY).

The drop in profitability was primarily driven by an 8.41% decline in revenue, which stood at Rs6.61 billion, compared to Rs7.22bn recorded in 9MFY24.

Despite the slight 0.92% rise in cost of revenue to Rs4.16bn, gross profit declined sharply by 20.82% to Rs2.45bn versus Rs3.10bn in the previous year.

Selling and promotional expenses rose by 10.19% YoY to Rs655.84m, while administrative expenses increased by 3.59% to Rs1.12bn during the review period.

As a result, NETSOL’s operating profit dropped by 52.37% YoY to Rs676.75m.

However, other operating expenses provided some relief, falling 31.06% YoY to Rs458.48m, while finance costs also decreased by 23.82% to Rs181.38m.

The company’s other income increased significantly by 25.55%, standing at Rs429.28m compared to Rs341.91m in SPLY.

On the tax front, final taxes and levies surged 37.42% YoY to Rs187.3m.

Earnings per share (EPS) dropped significantly, with basic EPS falling to Rs3.20 from Rs8.18 (-60.88%), and diluted EPS declining to Rs3.15 (-61.49%) in the same comparison period.