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SYS: Profitability surges by 56% YoY in 9MCY21

October 28, 2021 (MLN): Systems Limited (SYS), the leading name of Pakistan’s technology landscape revealed its financial performance for the nine months ended on September 30, 2021, as per which, the bottom line of the company expanded by 56% YoY to stand at Rs2.52 billion (EPS: Rs18.87), compared to Rs1.62bn (EPS: Rs7.92) in the same period last year (SPLY).

The boost in the company’s profitability was primarily caused by a 49% increase in revenue to Rs10.52bn. The increase in revenue has been contributed by all regions.

Additionally, dollar appreciation also supported the revenue growth since a major chunk of the company’s export revenue is denominated in USD.

Accordingly, the gross margins of the company improved to 34% in 9MCY21, compared to 33% in the SPLY.

Meanwhile, the increase in other income by 41% has also supported the bottom line of the company as the amount stood at Rs367.7 million, compared to Rs261.53mn in 9MCY20.  

It is important to note that the company has booked Rs16.12mn worth of loss from Associate in review period.

On the expense side, the company saw a jump of 87% in distribution expenses while administrative expenses increased by 35% YoY as compared to SPLY. Similarly, finance cost jumped by 94.4% YoY to Rs76.34mn in 9MCY21 due to higher working capital requirements.

On the tax front, the company’s effective tax rate reached at 2.67% compared to 2.21% in SPLY.

To note, the company is investing aggressively in talent with optimization of other costs and efficient working capital management helped achieve healthy operating margins.

Consolidated Condensed Interim Profit and Loss account for nine months ended September 30, 2021 (Rupees)

 

Sep-21

Sep-20

% Change

Revenue from contract with customers – net

10,524,242,502

7,068,619,417

48.89%

Cost of sales

6,928,344,524

4,701,070,979

47.38%

Gross profit

3,595,897,978

2,367,548,438

51.88%

Distribution expenses

388,193,152

207,267,839

87.29%

Administrative expenses

846,981,359

627,870,233

34.90%

Other operating expenses

44,470,513

101,802,684

Operating profit

2,316,252,954

1,430,607,682

61.91%

Other income

367,689,572

261,527,424

40.59%

Finance cost

76,335,750

39,267,609

94.40%

Share of loss of Associate

16,123,495

 

Profit before taxation

2,591,483,281

1,652,867,497

56.79%

Taxation

69,284,371

36,606,056

89.27%

Profit after taxation

2,522,198,910

1,616,261,441

56.05%

Earnings per share – basic 

18.87

7.92

138.26%

Copyright Mettis Link News

Posted on: 2021-10-28T15:20:50+05:00

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