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.
| CONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UNAUDITED) FOR THE NINE MONTHS ENDED MARCH 31, 2025 (Rupees in '000) | |||
| Item | Mar-25 | Mar-24 | %Change |
| Revenue from contracts with customers – net | 6,609,011 | 7,215,676 | -8.41% |
| Cost of revenue | (4,156,323) | (4,118,259) | 0.92% |
| Gross profit | 2,452,688 | 3,097,417 | -20.82% |
| Selling and promotional expenses | (655,843) | (595,175) | 10.19% |
| Administrative expenses | (1,120,100) | (1,081,282) | 3.59% |
| Operating profit | 676,745 | 1,420,960 | -52.37% |
| Other operating expenses | (458,483) | (665,040) | -31.06% |
| Finance cost | (181,380) | (238,096) | -23.82% |
| Other income | 429,277 | 341,915 | 25.55% |
| Profit before Final Taxes and Income Tax | 466,159 | 859,137 | -45.74% |
| Final tax / levies | (187,297) | (136,299) | 37.42% |
| Profit before Income Tax | 278,862 | 722,838 | -61.42% |
| Income tax | – | – | |
| Net Profit for the Period | 278,862 | 722,838 | -61.42% |
| Earnings Per Share – Basic and Diluted | |||
| Basic | 3.2 | 8.18 | -60.88% |
| Diluted | 3.15 | 8.18 | -61.49% |
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Posted on: 2025-04-30T16:35:02+05:00
