April 28, 2025 (MLN): Systems Limited (PSX: SYS) witnessed a robust financial performance for the quarter ended March 31, 2025, posting a profit after tax (PAT) of Rs2.5 billion, reflecting an impressive growth of 59% compared to Rs1.57bn in the same period last year.
This surge is attributed to the exchange loss recorded in the same quarter last year. Normalizing the impact of currency fluctuation, profit after tax showed an increase of 32.5% from same period last year.
This has been achieved by improving productivity, billing efficiency and optimization of costs.
The Company delivered strong Q1 results without benefiting from any significant currency gains, while also absorbing annual wage inflation.
This quarter marks the highest-ever operating profit in absolute terms.
Although total revenue for Q4 2024 was elevated due to nonrecurring, transactional revenue, the Company achieved growth in services revenue in Q1 2025, both year-over-year and quarter-over-quarter.
The company's revenue from contracts with customers (net) grew by 19% to Rs18.08bn, up from Rs15.19bn recorded in Q1 2024. Correspondingly, cost of sales increased by 16.73% to Rs13.53bn.
This led to a gross profit of Rs4.55bn, marking a 26% rise from Rs3.60bn.
Despite higher distribution expenses (up 25% to Rs623.88 million) and administrative expenses (up 27% to Rs1.41bn), the company's operating profit still climbed 24% to Rs2.47bn.
Other income saw a significant boost, jumping to Rs334.39m from a loss of Rs56.55mlast year, while finance costs decreased by nearly 40% to Rs89.64m.
Consequently, profit before taxation and levy surged 54% to Rs2.70bn, and profit before taxation stood at Rs2.59bn, up 57% year-on-year.
After accounting for taxation of Rs92.82 million (up 15%), Systems Limited reported a strong earnings per share (EPS) of Rs8.54, compared to Rs5.39 last year, reflecting an increase of 58%.
|
Financial Results for the three months ended March 31, 2025 (Rupees) |
|||
|
Mar-25 |
Mar-24 |
Change (%) |
|
|
Revenue from contract with customers – net |
18,079,554,950 |
15,194,400,478 |
19.00% |
|
Cost of sales |
13,529,504,905 |
11,590,496,491 |
16.73% |
|
Gross profit |
4,550,050,045 |
3,603,903,987 |
26.24% |
|
Distribution expenses |
623,884,483 |
497,556,484 |
25.40% |
|
Administrative expenses |
1,409,780,494 |
1,109,710,378 |
27.04% |
|
Research & development expenses |
17,648,624 |
33,121,736 |
-46.72% |
|
Other operating expenses |
30,854,853 |
(21,318,272) |
– |
|
Operating profit |
2,467,881,591 |
1,984,833,661 |
24.34% |
|
Other income |
334,390,249 |
-56,553,863 |
691.41% |
|
Share of loss from associate |
9,000,000 |
20,369,952 |
-55.79% |
|
Finance cost |
89,636,028 |
148,293,356 |
-39.56% |
|
Profit before taxation and Levy |
2,703,635,813 |
1,759,616,490 |
53.63% |
|
Levy |
109,338,833 |
107,730,083 |
1.49% |
|
Profit before taxation |
2,594,297,430 |
1,651,886,407 |
57.04% |
|
Taxation |
92,822,300 |
80,670,440 |
15.06% |
|
Profit after taxation |
2,501,475,129 |
1,571,215,967 |
59.21% |
|
Basic earnings per share |
8.54 |
5.39 |
58.44% |
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Posted on: 2025-04-28T10:09:00+05:00
