Islamabad, Oct 22: Systems Limited Profit Drops 24% in 9 Months
In its financial results for 9MCY24, Systems Limited (SYS) reported a consolidated profit after tax (PAT) of Rs. 5,432 million (EPS: PKR 18.6), down 24% year over year from Rs. 7,146 million (EPS: Rs. 24.5).
In contrast, 3QCY24’s consolidated earnings came in at Rs. 2,188 million (EPS: PKR 7.5), an 18% YoY increase.
With net sales of Rs. 48.3 billion in 9MCY24, there was a 29% YoY increase. Additionally, during 3QCY24, the topline increased by 22% YoY to Rs. 17.2 billion, primarily due to dollarized revenue growth across all verticals.
Gross margins fell 430 basis points year over year during 9MCY24. Rising energy prices, a declining average exchange rate, and inflationary changes in pay were the main causes of this decline in gross margins. The aforementioned factors caused the gross margins to drop to 25% during the quarter, a YoY decrease of 290 basis points.
During the previous quarter, administrative and distribution costs increased by 15%/26 percent YoY/QoQ, presumably as a result of rising resource prices and inflationary pressures.
Due to interest income from subsidiaries and a growth in cash and cash equivalents, other revenue for the quarter came to Rs. 186 million, up 4% year over year.
Due to fewer short-term borrowings, financing expenses decreased by 60% year over year and 30% quarter over quarter during 3QCY24.
In 3QCY24, the company’s effective tax rate was 9.9 percent, while in SPLY, it was 6.4 percent. Higher tax rates that went into effect this year in the UAE region were the reason for this tax increase.
