Karachi October 31 2022: NetSol Technologies Limited revenue for the quarter ended September 30, 2022 improved by 37% compared to the revenue posted in the same quarter of previous fiscal year.
In absolute numbers, the Company posted net revenue of PKR 1,716 million compared to PKR 1,252 million in the same quarter of last fiscal year. In current quarter revenue of PKR 43 million was recorded on account of local license sale.
The Company also recorded a handsome amount of PKR 890 million in comparison to PKR 519 million in the corresponding period for enhancement and customization in the systems deployed at their respective sites. In addition to it, subscription and support revenue increased from PKR 585 million to PKR 786 million for the current quarter.
“The increase in subscription and support revenue is mainly associated with different customers going into the maintenance phase after their successful implementation” says Company Chairman Naeem Ullah Ghauri
Ghauri added, “With NETSOL’s premier, next-generation platform for the global asset finance and leasing industry NFS Ascent live across all regions the company operates in – North America, Europe and Asia-Pacific, the company will continue to promote its unparalleled solution for the industry both On-premise as well as on the Cloud. Ascent on the Cloud enables the company to target Tier 2 and Tier 3 prospects as well.”
“Remaining committed to innovation, the company finds it imperative to continue enhancing Ascent in order to continue to futureproof operations for its diverse clientele worldwide and in order to adhere to the rapidly evolving and highly competitive marketplace” he added
On the cost side, due to the massive growth in the IT industry both locally and globally and coupled with work from home phenomena, has resultantly increased demand for IT resources, the resources retention cost has increased significantly. Cost of revenue mainly increased due to increase in salaries and benefits cost.
In addition to it, travel costs also increased during the period due to the travel of our resources to provide on-site support and implementation to our customers. Gross Margins during the period clocked in at PKR 476 million as compared to the corresponding period where margins were recorded at PKR 363 million.
The Company posted a net profit after tax of PKR 191 million compared to PKR 193 million in the comparable period. Included in net profit is PKR 292 million on account of currency exchange gain due to depreciation in the Pakistani Rupee compared to PKR 230 million registered in the comparable period. This profitability has translated basic and diluted earnings per share to clock in at PKR 2.18 and 2.17 respectively in comparison of PKR 2.15 in the corresponding period. Company posted net EBITDA profit of PKR 3.76 per diluted share compared to PKR 3.39 per share in the corresponding period.
The Company also consolidates financial results of its wholly owned subsidiary “NETSOL Innovation (Pvt) Limited”. NETSOL Innovation is mainly involved in the provision of professional services including Amazon Web Services.
Currently a team is being built up to provide AWS services and no revenue has so far been recognized thus resulting in losses for the quarter. Net consolidated revenues for the quarter ended September 30, 2022 were PKR. 1,753 million compared to PKR 1,252 million in fiscal 2022. Consolidated gross profit for the quarter was PKR 467 million as compared to PKR 363 million in the same period last year. On consolidated basis, the company posted net consolidated profit of PKR 149 million in the current quarter compared to PKR 194 million posted in the same period last year. Diluted earnings per share for the quarter ended September 30, 2022 & 2021 were PKR 1.69 & PKR 2.16 respectively.