August 26, 2021 (MLN): System Limited (SYS) has posted a consolidated net profit of Rs1.514billion during the six months for the period ended 30th June 2021, showing a growth of 42% YoY despite recording an exchange loss of Rs41.67 million.
In line with profit for the period, the basic earnings per share increased by 43% from Rs7.92 to Rs11.34.
According to the financial results sent to Exchange, the consolidated revenue grew by 44% from Rs4.56bn to Rs6.55bn. This increase in revenue has been contributed by all regions. Accordingly, the gross profit surged by 57% to Rs2.24bn, expanding gross margins from 31% to 34%.
Meanwhile, cost optimization and efficient working capital management translated into higher operating profits of Rs1.53bn, up by 74% YoY.
However, the other income of the company went down by 68% YoY to Rs 75mn on an account of PKR appreciation that led to exchange losses as 80% of the company’s revenue are exports.
Going forward, the topline of SYS will maintain 30% YoY growth in the next three years mainly due to higher software implementation, cloud-based and BPO services for international clients which have been undergoing rapid digital transformation, a research note of Intermarket Securities (IMS) highlighted.
|
Consolidated Condensed Interim Profit and Loss account for Half Year ended June 30, 2021 (Rupees) |
|||
|---|---|---|---|
|
|
Jun-21 |
Jun-20 |
% Change |
|
Revenue from contract with customers – net |
6,548,070,790 |
4,559,370,645 |
43.62% |
|
Cost of sales |
4,303,581,830 |
3,131,000,069 |
37.45% |
|
Gross profit |
2,244,488,960 |
1,428,370,576 |
57.14% |
|
Distribution expenses |
211,290,243 |
105,594,843 |
100.10% |
|
Administrative expenses |
512,889,839 |
413,850,583 |
23.93% |
|
Other operating expenses |
(12,130,739) |
28,977,770 |
– |
|
Operating profit |
1,532,439,617 |
879,947,380 |
74.15% |
|
Other income |
75,037,906 |
235,733,088 |
-68.17% |
|
Finance cost |
48,590,288 |
24,279,452 |
100.13% |
|
Profit before taxation |
1,558,887,235 |
1,091,401,016 |
42.83% |
|
Taxation |
44,184,459 |
23,737,171 |
86.14% |
|
Profit after taxation |
1,514,702,776 |
1,067,663,845 |
41.87% |
|
Earnings per share – basic |
11.34 |
7.92 |
43.18% |
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