Markets

Systems Limited reports 2023 profit at Rs8.7bn, 31% higher YoY

  • Brokerage house Topline Securities says results 'lower than expectation'
Published March 25, 2024

Systems Limited, one of the largest software developers in Pakistan, has reported a profit after tax of Rs8.69 billion during 2023, an increase of over 31%

On a consolidated basis, the company registered earnings of Rs6.63 billion in the same period of the previous year, according to the profit and loss accounts filed with the Pakistan Stock Exchange (PSX) on Monday.

Resultantly, earnings per share (EPS) increased to Rs29.86 in the period under review compared to Rs23.61 in SPLY.

The company’s board of directors also approved a final cash dividend for the year ended December 31, 2023, at Rs6 per share i.e. 60%.

The company’s revenue from contracts with customers surged by 68% to Rs53.44 billion during the year, which ended December 31, 2023, compared to Rs31.76 billion recorded in the prior year.

Systems Limited

System’s operating expenses surged to Rs5.92 billion in the year 2023, as compared to Rs3.27 billion in SPLY, a YoY increase of 81%.

As a result, System’s operating profit was 44% higher at Rs7.73 billion in 2023.

The company’s other income rose to Rs3.19 billion in 2023, as compared to Rs2.23 billion, an increase of 43%.

During the year, the software developer saw its cost of finance balloon to Rs869 million, up by 202%, as compared to Rs288 million in SPLY.

The company paid taxes to the tune of Rs591 million, as compared to Rs352 million in SPLY.

In a note, brokerage house Topline Securities said the result was lower than its expectations due to higher than expected loss from associates.

Systems Limited was founded in 1977 as private limited company and was converted into a public listed company in 2005. SYS was listed on PSX in 2015.

The principal activity of the company is the development and trading of software and business process outsourcing services. Besides having a strong footprint in the local market, the company has a presence in the US, UK, EU and Middle East.

Comments

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Az_Iz Mar 25, 2024 04:48pm
Great company. On the way to, first software unicorn, from Pakistan.
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Az_Iz Mar 25, 2024 08:37pm
Unicorn or not, should be the first Software company from Pakistan to reach $1 billion market capitalization.
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Az_Iz Mar 25, 2024 08:42pm
In more mature financial markets, tech companies like this one,with steady growth and profitability,have a PE ratio of about 30,and this company would already be valued around $1 billion.Great going.
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Builder Mar 25, 2024 10:34pm
@Az_Iz, their growth is not benefiting public share holders. Disappointing!
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Az_Iz Mar 26, 2024 12:32am
@ Builder, tech companies don't pay out a lot in dividends. They invest for more growth. Look at Apple, Google, Microsoft etc.
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Builder Mar 26, 2024 10:08pm
@Az_Iz No comparison to US companies - their growth benefits public share holders with growth in share price and stock split. Nothing like it here.
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