AVN 49.16 Decreased By ▼ -1.69 (-3.32%)
BAFL 28.59 Decreased By ▼ -0.27 (-0.94%)
BOP 3.64 Decreased By ▼ -0.06 (-1.62%)
CNERGY 3.26 Decreased By ▼ -0.05 (-1.51%)
DFML 10.78 Decreased By ▼ -0.22 (-2%)
DGKC 52.03 Decreased By ▼ -1.09 (-2.05%)
EPCL 43.62 Decreased By ▼ -0.39 (-0.89%)
FCCL 12.47 Decreased By ▼ -0.13 (-1.03%)
FFL 6.19 Decreased By ▼ -0.08 (-1.28%)
FLYNG 5.95 Decreased By ▼ -0.13 (-2.14%)
GGL 10.32 Decreased By ▼ -0.38 (-3.55%)
HUBC 68.66 Decreased By ▼ -0.04 (-0.06%)
HUMNL 5.81 Decreased By ▼ -0.19 (-3.17%)
KAPCO 22.61 Decreased By ▼ -0.29 (-1.27%)
KEL 1.83 Decreased By ▼ -0.03 (-1.61%)
LOTCHEM 28.98 Decreased By ▼ -0.54 (-1.83%)
MLCF 28.57 Decreased By ▼ -0.38 (-1.31%)
NETSOL 76.79 Decreased By ▼ -3.54 (-4.41%)
OGDC 78.62 Decreased By ▼ -0.28 (-0.35%)
PAEL 9.72 Decreased By ▼ -0.18 (-1.82%)
PIBTL 4.19 Decreased By ▼ -0.14 (-3.23%)
PPL 60.54 Decreased By ▼ -0.74 (-1.21%)
PRL 14.47 Decreased By ▼ -0.27 (-1.83%)
SILK 1.05 Decreased By ▼ -0.02 (-1.87%)
SNGP 42.44 Decreased By ▼ -0.26 (-0.61%)
TELE 7.07 Decreased By ▼ -0.25 (-3.42%)
TPLP 12.83 Decreased By ▼ -0.14 (-1.08%)
TRG 96.42 Decreased By ▼ -4.01 (-3.99%)
UNITY 15.16 Increased By ▲ 0.66 (4.55%)
WTL 1.18 Decreased By ▼ -0.03 (-2.48%)
BR100 4,160 Decreased By -51.8 (-1.23%)
BR30 14,407 Decreased By -198.1 (-1.36%)
KSE100 41,686 Decreased By -456.3 (-1.08%)
KSE30 14,742 Decreased By -200.9 (-1.34%)
BR Research

SYS: promising start to 2020

Among the few uplifting corporate results to have come out of PSX lately includes Systems Limited (PSX: SYS). The fi
Published May 4, 2020
Follow us

Among the few uplifting corporate results to have come out of PSX lately includes Systems Limited (PSX: SYS). The first quarterly financials, disclosed last week, signify strength for the leading software house. This comes after a strong performance in CY19. The strength shown in 1QCY20 is much-needed to be carried over into second quarter.

And it’s in the second quarter, ending June 2020, when impact of the pandemic will be clearly visible on the financials of PSX-listed corporates, with clear winners and losers in sight. The SYS management is confident that it would come out as the winner on the other side of the curve.

The holding company, Systems Limited, stands out in the quarter under review, contributing significantly to the gains made all the way from topline to bottomline. The holding company, which deals in software development, software trading and BPO business, is expected to weather the crisis better as its BPO business can score more clients during lockdowns abroad as demand for remote operations is increasing.

The company – which scores bulk of its revenues from overseas clients in North America, Europe and Middle East, and which accounted for 73 percent of net revenues and 96 percent of net profits in the consolidated financials for 1QCY20 – was helped, in part, by the surge in ‘other income’. This is attributable to the foreign exchange gains due to currency depreciation in the quarter.

In contrast, the two subsidiaries – the majority-owned EP Systems (which covers Pakistani market with airtime products like OneLoad) and the fully-owned TechVista (the Dubai-based firm that provides software development solution in the MENA region) – have together contributed positively to the consolidated topline, but their share in operating and net profits had somewhat reduced.

The latest director’s review suggest that going forward, the holding company expects to increase its foreign business by catering to increased overseas demand for services mainly BPO contact centers, IT support, managed services, cloud services, and digital e-commerce. With nationwide lockdowns making exceptions for software houses, BPO, and call centers, the firm can capitalize on these opportunities.

As for local business, SYS can count on its local telecom clients, whose revenues are almost shielded from the impact of lockdowns. Besides, the banking sector is also operational, albeit partially. The local EP Systems also seems well-positioned, through its network of retailers and shopkeepers, to ride a potential wave of pandemic-induced digitization in Pakistan. No wonder, the stock has rallied on the bourse post-lockdown, rising more than 50 percent since touching a panic-induced low in late March.


Comments are closed.

SYS: promising start to 2020

Flanked by PTI defectors, Jahangir Tareen launches Istehkam-e-Pakistan party

Pakistan has to satisfy IMF on three counts including budget ‘consistent with programme objectives’

KSE-100 plunges over 450 points amid uncertainty on upcoming budget

Inter-bank: rupee ends losing streak with marginal gain against US dollar

Open-market: US dollar strengthens as demand surges

IMF urges Fed, central banks to keep tightening to reduce inflation

TAPI Pipeline: Pakistan and Turkmenistan sign implementation plan

APTMA urges Dar to reinstate competitive energy tariffs

At US request, Pakistan grants detained designer Khadija Shah consular access

Ali Muhammad Khan re-arrested outside Peshawar jail