March 26, 2020 (MLN): Systems Limited (SYS) has unveiled its financial performance for the year CY19, as per which the company retained its growth trajectory by posting net profits worth Rs 15 billion against profits of Rs 1 billion reaped in CY18.
This has reflected in basic earnings per share which grew by 47.48% YoY from Rs 8.72 per share to Rs 12.86 per share.
SYS’s tremendous performance during the year was attributable to the number of factors such as increased presence in developed markets, sustainability in MEA operations due to increased recurring revenue, increased business from North America region and from being a core beneficiary of Government focus on public sector digitalization and rupee devaluation.
With over 83% of the company’s revenues being in export, the currency devaluation during the year has facilitated the company to become more competitive in the international markets. The Company has established accelerated assets, products and solutions that would expand the sales pipeline and bring more sale closures for the future in the Global market, going forward.
Also, the company’s subsidiary E-Processing Systems is performing incredibly in One Load operations due to SBP approval to operate as EMI. This has enabled EP Systems to connect the unbanked mass market to the formal banking system allowing them to transact and use the financial system easily and seamlessly.
During the year, company’s standalone revenue grew by 41.5% from Rs.5.3 billion to Rs.7.5 billion, while its costs of sales jumped by 36% YoY, causing gross margins to rose by 2ppts from 29% to 31%. In addition to this, the company’s gross profitability also surged by 55% YoY to Rs 2.369 billion.
Furthermore, the company also enjoyed a reduction in tax expenses by Rs 14 million during the year, which provided a boost to the company’s profitability.
Consolidated Condensed Interim Profit and Loss account for Year ended December 31st, 2019 (Rupees)
Revenue from contracts
Cost of sales
Other operating expenses
Profit before taxation
Profit after taxation
Earnings per share – basic
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