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
27715
