Karachi May 5 2024: NetSol Technologies Limited performance remained better if we take exchange rate impact out of the equation for the quarter ended March 31 2024.
However, company posted a net profit after tax of PKR 64 million for the quarter which is a decline of 96% when compared with the same quarter last year.
Revenue for the quarter that ended March 31, 2024, improved by 8% compared to the revenue posted in the same quarter of the previous fiscal year. The company posted a net revenue of PKR 2,247 million as compared to PKR 2,079 million during the corresponding period last year.
Company recorded PKR 81 million in the current quarter on account of additional license sold our associated company’s customer. On the services side, the Company recorded revenue amounting to PKR 989 million in comparison to PKR 616 million in the same quarter of the last fiscal year. This is a continuous nature of services revenue coming from our existing customers for enhancement and customization in the systems deployed at their respective sites. In addition to it, subscription and support revenue also increased from PKR 1,089 million to PKR 1,177 million during the current quarter.
Gross Margins during the period clocked in at PKR 989 million as compared to the corresponding period where margins were recorded at PKR 695 million. An increase in revenues coupled with cost optimization initiatives translated into an 119% QoQ improvement in the company’s operating profits which increased from PKR 202million last year to PKR 442 million in the current quarter.
The Company posted a net profit after tax of PKR 64 million compared to PKR 1,404 million last year. Pak Rupee remained stronger during the period against other currencies which resulted in booking of exchange loss of PKR 265 million compared to exchange gain of PKR 1,401 million in the comparable period.
If we take the impact of currency gain/ loss out of equation then the Company has performed much better than last year.
The Company posted basic & diluted earnings per share of PKR 0.73 & 0.72 respectively for the quarter that ended March 31, 2024, in comparison of PKR 15.98 in the corresponding period. The company posted a net EBITDA profit of PKR 1.60 per diluted share compared to PKR 18.48 in the comparable period.
On year to date basis, the company posted revenue PKR 6,989 million compared to PKR 5,478 million in the corresponding period. The Company posted a net profit of PKR 870 million in comparison of PKR 1,433 million during the same period last year. Basic and Diluted earnings per share for the nine months ended March 31, 2024 were PKR 9.90 and 9.84 respectively in comparison to PKR 16.31 and 16.25 in the corresponding period. Year to date EBIDTA profit for the current period was PKR 13.03 per diluted share compared to PKR 22.62 in the preceding period.
The Company also consolidates financial results of its wholly owned subsidiary “NETSOL Innovation (Pvt) Limited” and its newly incorporated Dubai based wholly own subsidiary “NETSOL Ascent Middle East Equipment Trading LLC”. NETSOL Innovation is mainly involved in the provision of professional services including Amazon Web Services. Net consolidated revenues for the quarter ended March 31, 2024 were PKR. 2,325 million compared to PKR 2,105 million in same period of fiscal 2023. Consolidated gross profit for the quarter was PKR 996 million as compared to PKR 655 million in the same period last year. On consolidated basis, the company posted net consolidated profit of PKR 13.59 million in the current quarter compared to net consolidated profit PKR 1,343 million posted in the same period last year. Basic and diluted earnings per share for the quarter ended March 31, 2024 were PKR 0.15 compared to earnings per share of PKR 15.28 in the comparable period.
