KARACHI, PAKISTAN: Systems Limited (SYS), a leading technology and telecommunications service provider, has reported a robust financial performance for the calendar year 2023. The company’s profit after tax (PAT) soared to PKR 8,689 million, marking a significant 31% year-over-year (YoY) increase from the previous year’s PKR 6,629 million. Earnings per share (EPS) also rose from PKR 22.8 to PKR 29.8.
In the fourth quarter of CY23 alone, Systems Limited’s earnings reached PKR 1,542 million (EPS: PKR 5.3), a modest 2% YoY growth. Alongside these results, the company declared a final cash dividend of PKR 6.00 per share, up from PKR 5.00 per share in CY22, rewarding its shareholders for their continued support.
Financial Highlights of CY23:
- Net Sales: The company’s net sales hit a record PKR 53,435 million, an impressive 68% YoY increase. This surge is attributed to a 187% and 71% YoY growth in telecommunications services and technology-related solutions, respectively. The fourth quarter saw net sales jump by 39% YoY to PKR 16,102 million.
- Gross Margins: Despite a slight decrease in gross margins from 27.19% in CY22 to 25.56% in CY23, the company managed to improve its fourth-quarter margins to 22.00%, up by 240 basis points YoY. The margin reduction is mainly due to inflationary pressures, rising energy costs, and significant amortization expenses.
- Other Income: Other income for CY23 increased by 43% YoY to PKR 3,194 million, largely due to exchange gains amidst the Pakistani Rupee’s depreciation. However, the fourth quarter saw a 64% YoY decline in other income to PKR 177 million, primarily because of the previous year’s dividend income.
- Finance Costs: The finance cost witnessed a substantial 202% YoY increase, reaching PKR 869 million for CY23, driven by higher short-term borrowings and interest rates. The fourth quarter’s finance cost also rose by 60% YoY to PKR 215 million.
- Administrative and Distribution Expenses: These expenses grew by 72% YoY, likely impacted by inflation and an expanded resource pool.
- Effective Taxation: The company recorded an effective tax rate of 11.0% in the fourth quarter of CY23 compared to 4.5% in the same period last year.
Systems Limited’s performance indicates a strong trajectory in the technology sector, with significant contributions to the telecommunications industry. The company’s strategic investments and operational efficiencies have yielded positive outcomes, positioning it for continued growth in the coming years.
Systems Limited is a prominent Pakistani technology company that specializes in various services including digital transformation, data and AI, and cloud solutions. They have been recognized for their achievements with awards such as the Top IT & ITES Exporter of 2024, Forbes Asia’s Best Under A Billion, and the 2023 Microsoft Country/Region Partner of the Year. Founded in 1977, Systems Limited has a significant global presence and is known for its contributions to industries like mortgage, apparel, retail, and BPO services.
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