March 10, 2022 (MLN): While holding its progressive momentum, Systems Limited managed to close the year ended on December 31, 2021, on a positive note as its profitability increased by more than twofold to Rs4.38 billion (EPS: Rs32.41), compared to Rs2.16bn (EPS: Rs16.17) in 2021.
In conjunction with results, the board of directors has also announced the final cash dividend of Rs5 per share i.e. 50% for the period ended on December 31, 2021.
The boost in the company’s bottom-line was primarily caused by a 55% increase in revenue to Rs9.87bn. The revenue growth has been mainly driven by IT services and profitability growth has been driven by demand and growth across all geographies and all verticals.
In addition, revenue in USD also showed a growth of 57% and profit growth of 50%.
Accordingly, gross profit and operating profit increased by 53% and 51% respectively.
Meanwhile, it is important to note that the company witnessed a share of loss from associates worth Rs83.38mn during the year.
On the expense side, the company saw a notable increase in distribution expenses by around 92% YoY to clock in at Rs385.6mn while administrative expenses jumped by 97.53% YoY as compared to SPLY.
Similarly, finance cost moved up by 82% YoY to Rs121.4mn in 2021 due to an increase in the policy rate.
On the tax front, the company’s effective tax rate came in at 1.22% compared to 5.17% in SPLY.
|
Consolidated Profit and Loss account for the year ended December 31, 2021 (Rupees) |
|||
|---|---|---|---|
|
Dec-21 |
Dec-20 |
% Change |
|
|
Revenue from contracts with customers |
15,304,037,567 |
9,876,827,710 |
54.95% |
|
Cost of sales |
(10,314,365,850) |
(6,619,640,203) |
55.81% |
|
Gross profit |
4,989,671,717 |
3,257,187,507 |
53.19% |
|
Selling and distribution expenses |
(385,600,533) |
(201,024,729) |
91.82% |
|
Administrative expenses |
(1,426,803,958) |
(722,310,556) |
97.53% |
|
Other operating expenses |
(8,131,032) |
(220,135,525) |
-96.31% |
|
Other income |
653,030,134 |
235,201,038 |
177.65% |
|
Finance cost |
(121,404,658) |
(66,659,676) |
82.13% |
|
Fair value adjustment on dilution of control in subsidiary |
816,226,748 |
– |
– |
|
Share of loss from associate |
(83,384,503) |
– |
– |
|
Profit before taxation |
4,433,603,915 |
2,282,258,059 |
94.26% |
|
Taxation |
(53,944,635) |
(117,960,376) |
-54.27% |
|
Profit after taxation |
4,379,659,280 |
2,164,297,683 |
102.36% |
|
Earnings per share – basic and diluted |
32.41 |
16.17 |
100.43% |
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