Systems Limited announced its 1QCY21 financial results where the company posted a consolidated net profit of PKR602mn as compared to a Net Profit of PKR527million marking an increase of14%YoY.
Sales revenue of the company recorded a dollar-based growth of 38% YoY in top-line to reach PKR 3Billion in 1QCY21. Over 80% of the revenue was generated from exports with 45% contribution from the North American segment, followed by Middle East and European markets at 30% and 9%, respectively
The company has recently entered into a partnership with SAP which is expected to add significantly to the revenue of the company and the company is still investing and hiring resources to aid in materializing the full potential of this partnership. SAP plans to shift business to cloud from on-ground services.
Management also shared breakup up SYS revenue and disclosed that Retail & CPG/Telecommunication/BPO services are driving majority of company business with sales contribution of 20%,19% and 14% respectively in 1QCY21.
COVID19 has turned the tide in favour of Systems Ltd where remote working has enabled the company to get new contracts while rationalizing the cost for the company. This has made Pakistan an outsourcing destination for its customers in the Middle East, providing strength to cash flows and margins of the company.
Overall, growth potential in all the regions remains intact where the company specifically highlighted more opportunity for skilled offshore resources in the European market. Moreover, the subsidiary ‘System ventures’ is looking to acquire IT setups for bringing in inorganic growth.
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