Systems Limited Posts 79% Profit Growth in First 6 Months of 2023

Systems Limited (PSX: SYS) had another good run with a massive 79 percent year-on-year (YoY) profit growth during the half year ended 30 June 2023.

According to the company’s consolidated financial results, the profit for the period increased from Rs. 2.96 billion to Rs. 5.29 billion. During Q2, the company’s PAT clocked in at Rs. 1.4 billion, down 20 percent YoY compared to Rs. 1.76 billion in the same period last year.

SYS did not announce any cash dividend for the period in review.

Consolidated revenue grew by 102 percent from Rs. 11,463.24 million to Rs. 23,189.16 million versus SPLY. Gross profit and operating profit increased by 71 percent and 41 percent respectively.

The increase in revenue has been led by the Middle East region,

Investment in subsidiaries along with inflationary pressures in the domestic market have impacted margins, however, optimization of revenue and costs has positively impacted margins quarter over quarter, SYS said in a brief overview of its financial performance.

Margins remain under stress due to significant inflationary pressures in the domestic market, partially eased by the continued devaluation of the Pak Rupee resulting in a revaluation gain of Rs. 2.35 billion compared to the gain in June 2022 of Rs. 664.67 million.

Net profit for the period at Rs. 5,293.86 million is 79% higher than SPLY, including the Rs. 2,546.64 million exchange gain.

Other income of the company jumped by 189 percent from Rs. 981 million to Rs. 2.83 billion in 1HCY23. Meanwhile, the finance costs of SYS skyrocketed by 384 percent to Rs. 408 million during the period in review.

Administrative expenses during 1HCY23 spiked by 87 percent from Rs. 985 million to Rs. 1.84 billion. Additionally, the company paid Rs. 271.7 million in taxes, compared to Rs. 166 million in 1HCY22.

Basic and diluted earnings per share increased by 71 percent and 70 percent respectively in line with the profit for the period. Eliminating the currency impact, revenue is up by 39 percent in US dollar terms.

At the time of filing, the company’s scrip at the bourse was Rs. 432.56, down 7.04 percent or Rs. 32.77 with a turnover of 796,604 shares on Tuesday.

Source: Pro Pakistani