KARACHI: Systems Limited (SYS) has reported strong half-yearly results, highlighting resilient topline growth and robust profitability despite global pricing pressures in the technology outsourcing sector.
The company announced earnings of Rs5.1 billion for 1HCY25, reflecting a 59 percent year-on-year increase and translating into earnings per share (EPS) of Rs3.51. Revenue for the period rose 18 percent YoY to Rs36.7 billion, with the MENA region contributing the largest share to the topline. The company also achieved its highest-ever half-year operating profit of Rs5.1 billion.
In the second quarter of the calendar year 2025 alone, SYS’s earnings surged 59 percent YoY, driven by higher gross margins of 25.4 percent compared to 22.5 percent in the same period last year. Other income also jumped significantly by 184 percent to Rs487 million.
Management noted that growth in the first half was relatively subdued due to holidays, but pointed to a healthy backlog of orders in the pipeline, which is expected to support business momentum in the coming quarters. The company reaffirmed its intention to maintain a 20 percent payout ratio.
SYS management emphasized its strategic focus on acquiring clients with long-term growth potential and scaling high-value business process outsourcing (BPO) services in areas such as marketing, branding, corporate, consumer, and commercial finance. The recent acquisition of British American Tobacco’s SAA Services (BAT) is expected to accelerate expansion in the consumer packaged goods (CPG) segment. BAT will continue to operate independently in the near term, with SYS aiming to transition beyond a cost-based service model. The management also acknowledged competitive pricing pressures, citing AI-driven productivity gains among global rivals, including Wipro, HCL Technologies, and Tech Mahindra in the MENA region. Despite these challenges, SYS reiterated its stance to remain a services-oriented rather than product-based company. On the regulatory front, the company expects continuation of the Final Tax Regime (FTR), with no changes indicated so far by the government.
Systems Limited is a public limited company and is principally engaged in the business of software development, trading of software and business process outsourcing services.
The briefing came against the backdrop of Pakistan’s IT export sector delivering its strongest monthly performance. According to Topline Research, Pakistan recorded all-time-high monthly IT exports of US$354 million in July 2025, marking a 24 percent YoY and 5 percent MoM increase. This figure also surpasses the 12-month average of US$317 million.
Computer services led the surge, with software consultancy exports climbing to USD 104 million from USD 96 million in June 2025. Analysts attributed the growth to stronger client acquisition in GCC markets, regulatory support from the State Bank of Pakistan (SBP) — including the increase in retention limits on specialized foreign currency accounts to 50 percent — and relative stability in the Pakistani rupee.
Net IT exports for July stood at USD 317 million, reflecting a 26 percent YoY rise and exceeding the 12-month average of USD 272 million. The government has set an ambitious target of USD 5 billion in IT exports for FY26 and USD 10 billion by FY29 under the “Uraan Pakistan” plan, implying a compound annual growth rate (CAGR) of 27 percent over the next four years.
Copyright Business Recorder, 2025
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