The oldest software house in Pakistan, Systems Limited, has declared its financial results for the first quarter of 2020.
The software house continued to expand as over the period under review its combined income grew by 71.15 percent. In the same span last year the company posted a profit of Rs. 526.80 million compared with a profit of Rs. 307.80 million.
Owing to higher profits, high other revenues, and lower other operating expenses, the results were beyond industry expectations.
The profitability of the company increased due to 11 percent year-on-year depreciation of the rupee in 1Q CY20, higher domestic sales due to automation led by the public / private sectors, growing business, better margins from the North America region and positive response from European markets and improved recurrent revenues from MEA operations.
The financial health of Systems Limited is steadily improving due to the devaluation of rupees and the export rebate that has positively impacted the growth of revenues as most of its revenues come from exports.
Sales settled at Rs. 2.23 billion, marking a rise of 39.30 percent compared to Rs. 1.60 billion in the same period last year.
The company’s revenue expense, however, was reported at Rs. 1.58 billion, up 42 percent in the first quarter from Rs. 1.11 billion at the same time last year. This brought the gross income to Rs. 649.67 million compared to Rs. 486.81 million, a 33.45 percent rise.
Other business sales saw a 4.86x rise to Rs. 202.65 million compared to Rs. 34.55 million in the same period last year.
Finance cost saw a rise of 104.50 percent to Rs. 11.19 million compared to Rs. 5.47 million due to an increase in the country’s interest rates over the period. The company’s earnings per share rose from Rs. 2.78 to Rs. 4.31.
At the end of the day, the share of Network in the stock exchange was closed at Rs. 147.75, up 7.49 percent or Rs. 10.30, with a turnover of 0.19 million shares.
