Karachi May 11 2022: NETSOL’s premier, modern technology platform NFS Ascent is being used in Asia-Pacific, North America as well as Europe. The company will continue heavily promoting its highly adaptive solution for banks, automotive and equipment finance and leasing companies worldwide. NETSOL continues to offer its clientele and finance and leasing companies across the globe the option to avail Ascent either On-prem or via the Cloud.
By offering its premier product on the Cloud, NETSOL enables finance and leasing companies to gain access to the same next-generation platform used by bluechip organizations and Fortune 500 companies without having to pay any upfront license fees. Ascent on the Cloud is offered via swift deployments, value-based, flexible subscription-based pricing options and the ability to scale on demand.
Alongside the promotion of its premier platform NFS Ascent and Ascent on the Cloud, NETSOL will also continue promoting NFS Digital – its suite of digital transformation solutions for the global asset finance and leasing industry.
The Company is also focusing on providing professional services through its wholly-owned subsidiary “NetSol Innovation (Pvt) Limited for this purpose. Through this platform, the Company is offering professional services to organizations in different regions in order to enable them to meet their business objectives. These services primarily consist of technical consultancy, web development, app development, digital marketing, cloud services, outsourcing, and co-sourcing. Pertaining to its professional services offerings, NETSOL’s highly skilled and experienced professionals include skilled software programmers, well-versed business analysts, competent quality assurance engineers, technical and solution architects, project managers, cloud-native developers, and architects, mobile/web app developers, and automation specialists.
Additionally, the Company has been setting its footprints in the Cloud services domain. The company’s aim is for NETSOL Cloud services to be marketed across the AWS community to increase its reach to potential clients that want to adopt the cloud platform. NETSOL will continue focusing on the promotion of AWS services and continue to work towards an innovative future.
NETSOL’s Innovation Lab continues to experiment and work on different technologies in order to generate new revenue streams and to ensure that by having a futureproof business, its clients maintain their competitive advantage in today’s highly competitive marketplace. These technologies include, but are not limited to, Artificial Intelligence/Machine Learning, Big Data and Blockchain.
NETSOL will continue to maintain its presence at annual industry-leading events, including summits, conferences, conventions and other events in North America, Europe and Asia-Pacific. With the return to live/in-person events, the company looks forward to continuing its lead generation activities at these events.
Revenue for the quarter ended March 31, 2022, improved by 29.52% compared to the revenue posted in the same quarter of the previous fiscal year. However, in dollar terms, the increase in revenue is around 16% in the current quarter. The company achieved a net revenue of PKR 1,607 million as compared to PKR 1,241 million during the corresponding period last year. In the current quarter, Company recorded PKR 281 million license revenue due to the implementation of NFS AscentTM at two different customer sites in Taiwan and South Africa. On Services side, the Company recorded revenue amounting to PKR 614 million in comparison of PKR 523 million in the same quarter of 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 559 million to PKR 712 million during the current quarter. The increase in Subscription and support revenue is mainly associated with different customers going into maintenance phase after their successful implementation along with revision in their annual maintenance rates.
On the cost side, due to the massive growth in the IT industry both locally and globally and resultantly increased demand for IT resources, the resources retention cost is increasing significantly for the Company. Cost of revenue mainly increased due to increase in salaries and benefits cost. The company also hired net fifty five additional resources during the third quarter. In addition to it, due to relaxation in travel restrictions, travel cost also increased during the period due to travel of our resources to provide on-site support and implementation to our customers. Gross Margins during the period clocked in at PKR 519 million as compared to the corresponding period where margins were recorded at PKR 455 million.
The Company posted a net profit after tax of PKR 165 million compared to a net loss of PKR 180 last year. This profitability has translated basic and diluted earnings per share to clock in at PKR 1.83 and 1.82 respectively for the quarter ended March 31, 2022, in comparison to basic and diluted loss share of PKR 2.00 in the corresponding period of last fiscal year. The company posted a net EBITDA profit of PKR 3.18 per diluted share compared to EBITDA loss of PKR 0.54 in the comparable period. On year to date basis, the company posted revenue PKR 4,572 million compared to PKR 3,620 million in the corresponding period. The Company posted a net profit of PKR 877 million in comparison of PKR 77 million during the same period last year. Basic and Diluted earnings per share for the nine months ended March 31, 2021 were PKR 9.76 and 9.73 respectively in comparison to PKR 0.86 in the corresponding period. Year to date EBIDTA profit for the current period was PKR 13.82 per diluted share compared to PKR 5.30 in the preceding period.
The Company also consolidates the financial results of its wholly owned subsidiary “NETSOL Innovation (Pvt) Limited”. From this platform, the Company is providing professional services currently to a UK-based customer and is also in the process of building a team for cloud services to provide AWS services globally. Net consolidated revenues for the quarter ended March 31, 2022 were PKR. 1,624 million compared to PKR 1,241 million in 2021. Consolidated gross profit for the quarter was PKR 505 million compared to PKR 455 million in the same period last year. On a consolidated basis, the company posted net consolidated profit of PKR 148 million in the current quarter compared to net consolidated loss of PKR 180 million in the same period last year. Basic and diluted earnings per share for the quarter ended March 31, 2022 were PKR 1.65 and 1.64 respectively in comparison to basic and diluted loss per share PKR 2.00 in the corresponding period.
