April 28, 2021 (MLN): Systems Limited has revealed its financial performance for the quarter ended March 31, 2021, according to which, the company has reported net profits of Rs602million (EPS: 4.96), i.e. around 14.25% higher as compared to the same period of last year (SPLY).
The boost in the company’s bottom-line was primarily caused by a 36.5% increase in revenue to Rs.3.05billion. The surge in revenue was mainly attributable to growth in export sales with significant contributions of high-margin territories such as Europe, North America, and the Middle East. Additionally, a 1.6% YoY average dollar appreciation also supported the revenue growth since a major chunk of the company’s export revenue is denominated in USD.
Accordingly, gross margins witnessed an accretion of 6ppts to 35% in 1QCY21 as against 29% in SPLY mainly due to higher contribution from the USA region.
Due to dollar depreciation during 1QCY21, the company reported a loss of Rs116mn in other income mainly owing to foreign currency denominated receivables.
Meanwhile, it is important to note that the company has booked Rs164.96mn worth of exchange loss in this quarter while an exchange gain of Rs 165.9 million was recorded in the same quarter last year.
On the expense side, the company saw a decline of 4.73% in distribution expenses whereas administrative expenses jumped by 10.83% YoY as compared to SPLY. Similarly, finance cost jumped by 87% YoY to Rs21mn in 1QCY21 due to higher working capital requirements.
On the tax front, the company’s effective tax rate came in at 4% compared to 2% in SPLY.
| Consolidated Condensed Interim Profit and Loss account for quarter ended March 30, 2021 (Rupees) | |||
|---|---|---|---|
|
Mar-21 |
Mar-20 |
% Change |
|
| Revenue – net |
3,047,767,393 |
2,231,850,608 |
36.56% |
| Cost of sales |
1,981,846,033 |
1,582,179,058 |
25.26% |
| Gross profit |
1,065,921,360 |
649,671,550 |
64.07% |
| Distribution cost |
76,667,444 |
80,473,818 |
-4.73% |
| Administrative expenses |
242,260,943 |
218,590,645 |
10.83% |
| Other operating expenses |
(16,109,771) |
5,138,241 |
|
|
302,818,616 |
304,202,704 |
-0.45% |
|
| Operating profit |
763,102,744 |
345,468,846 |
120.89% |
| Other income |
(115,884,033) |
202,657,287 |
|
| Finance cost |
20,960,052 |
11,197,153 |
87.19% |
| Profit before taxation |
626,258,659 |
536,928,980 |
16.64% |
| Taxation |
24,389,421 |
10,120,705 |
140.99% |
| Profit after taxation |
601,869,238 |
526,808,275 |
14.25% |
| Earnings per share – basic |
4.96 |
4.31 |
|
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