Karachi April 19 2023: System limited share price fall as much as 6.25 percent on below expected result before recovering some of the losses at Pakistan Stock Exchange.
Operating revenues for the year in local currency were Rs. 20,644.7 million showing a growth of 73% over the previous year. Profit after tax for the year was Rs. 6,299.8 million showing a growth of 90%. Gross profit and operating profit increased by 69% and 73% respectively.
However, company gross profit margin drop to 20% in the last quarter compared with above 30% in the first three quarters of this calendar year.
Since FY18, the Company has delivered a Compounded Annual Growth Rate (CAGR) in revenues of 53%. The revenue growth has been mainly driven by IT services and profitability growth has been driven by demand and growth across all geographies and all verticals. Revenue in USD also showed a growth of 38% and profit growth of 51%.
During year ended 31 December 2022, consolidated revenue grew by 108% from Rs. 15,304.0 million to Rs. 31,759.9 million. Gross profit and operating profit increased by 73% and 69% respectively. Net profit for the period increased by 51% from Rs. 4,379.7 million to Rs. 6,629.6 million. Basic and diluted earnings per share increased by 46% over the same period last year. LY includes one time gain of Rs 816.2 million arising from the conversion of EP Systems BV from a subsidiary to an associate, growth in PAT excluding this gain is 88% from Rs. 3,563.4 million to 6,629.6 million. Revenue growth in USD is 65% and operating profit is 34%.
Growth in revenue is contributed by both the Company and its subsidiaries. Majority of the work from our group companies has moved from onsite to offshore.
Board has also announced a final cash dividend for the year ended 31 December 2022 at Rs. 5/- per share i.e. 50 %.