Karachi October 31 2023: Octopus profit declined 31.7% in first nine months of current year against the same period in the preceding year due to drop in revenue.
Revenues for the nine months are in line with the 3rd quarter Plan. Though revenues are dropped in
comparison to the last year due to the timing gap of recognition of service revenues in particular in
the territory of Middle East which was incorporated in the 3rd quarter plan. The re-negotiations of
certain projects have lagged, to start at the end of the year. The Company is confident to fill the gap of
decrease in revenues by the end of the year through subscriptions revenue of its internally developed
intellectual properties (IPs) (Software) to industry, and sizable closing spares & services orders in the
Middle East region.
On the overall cost side there is a sharp increase mainly attributed to the hiring of senior sales and
technical / software team as well as procurement of software and IT services, required for the fulfillment of IPs development as was disclosed in the corporate plan at the start of the year.
The standalone profit after tax (PAT) also includes the exchange gains (other than operational income)
recorded as of the reporting date. This gain is attributed to the notable increase in the disparity between the US dollar exchange rate, which rose from Rs. 210 to Rs. 289 per US dollar between December
2022 and September 2023. This trend of devaluation would help the Company realize further exchange
gain from its international revenue in the upcoming quarter. However, it is to be noted that USD Parity
in the reporting quarter is not significant.
Management is confident to achieve the aggressive targeted PO generation for the subscription business and aftermarket support business both in Pakistan and abroad