Karachi October 22 2024: Systems Limited, Pakistan’s largest listed technology company, operating profit decreased by 10 percent, mainly due to higher inflationary costs and lower average exchange rate during nine months periods ended 30 September 2024, according to company filing to the exchange.
During nine months periods ended 30 September 2024, standalone revenue grew by 21 percent over same period last year from PKR 23,075.54 million to PKR 27,923.94 million.
Gross profit decreased by 1 percent whereas operating profit decreased by 10 percent, mainly due to higher inflationary costs and lower average exchange rate. However, the Company has started seeing improvement in margins resulting from optimization of costs and improving efficiency.
As a consequence of rupee appreciation, net profit for the period has been impacted by an exchange loss of PKR 210.35 million compared to the PKR 2,386.23 million exchange gain in September 2023 decreasing net profit by 38 percent, from 6,730.02 million to PKR 4,196.67 million.
Since the rupee has appreciated against the dollar in this period, the Company did not get the leverage on the wage inflation which has impacted the bottom line. However, the business continues to grow, and revenue has increased by 21 percent in USD terms.
