NetSol Technologies Limited, one of Pakistan’s most popular software houses, has announced its financial results for the third quarter ending 31 March 2019.
The business posted an unconsolidated profit of Rs. 201.10 million, up 10.16 percent compared to a profit of Rs. 182.56 million registered in the same period as a result of an unprecedented rise in other revenues.
This puts the company’s nine-month (Jul-Mar) income at Rs. 151.23 million, down 82.20 percent compared to Rs. 849.53 million posted in the same period of the previous year.
Q1 2020 (Jan – Mar)
In the third quarter, NetSol reported a 19.60 percent decline in its revenue. It was able to generate revenue of 1.15 billion rs compared to last year’s 1.43 billion rs. Revenue production for the current quarter was correlated with the revenue sources for services and maintenance.
Service revenue however clocked in at Rs. 712 million compared with Rs. 879 million over the same duration of the previous fiscal year. Additionally, during the current period, maintenance revenue rose from Rs. 251 million to Rs. 447 million. The increase in maintenance revenue is largely correlated with multiple customers entering the maintenance process after effective implementation, and “Go Live,” the company said in its released report.
The company’s sales cost came in at Rs. 799 million, down 8.60 percent compared to Rs. 874 million reported last year in the same period.
Operating expenses rose from Rs. 185.52 million to Rs. 194.75 million during the period. Other sales rose unprecedently to Rs. 280.49 million compared to Rs. 28.16 million, up 9 times.
Finance costs also saw a rise of Rs. 13.36 million from Rs. 9.04 million of 47.80 percent.
Other operating expenses exploded dramatically to Rs. 95.36 million, up 42 percent on last year’s Rs. 67.23 million. This was attributed to currency exchange loss resulting during the quarter from Pakistani Rupee appreciation against the US dollar. It also registered a share of Rs. 8.10 million in the associate loss.
Earnings per share rose from Rs 2.23 in the quarter to Rs 2.24.
“Like all companies across the world, the latest pandemic has also affected NETSOL. Although demo will continue to take place, due to the current situation there could be delays in further materialization, “the company said in the released report submitted to PSX.
It further noted that it will be important to assess what way things are going in the next few weeks.
Earlier there were rumors that some workers had been laid off by the company and expected some salary cuts in the future. They are still waiting to see the future direction before they take those steps, according to the company.
At the time of filing this paper, NetSol’s PSX shares were trading at Rs. 41.50, down by Rs. 0.87 or -2.05 percent with 498,000 shares in turnover.