Islamabad, Mar 24, 2025: Systems Limited (PSX: SYS) has announced a final cash dividend of Rs. 6 per share (60%) for the fiscal year ending December 31, 2024. Additionally, the company has approved a share sub-division, reducing the face value from Rs. 10 to Rs. 2 per share.
This means that for every one share held, investors will now own five shares, as per Section 85(1)(c) of the Companies Act, 2017.
Financial Performance Overview
Despite facing some financial challenges, Systems Limited reported a profit of Rs. 7.46 billion for the year, translating to earnings per share (EPS) of Rs. 25.55.
This marks a 14.14% decline from the previous year’s Rs. 8.69 billion (EPS: Rs. 29.86).
The company’s revenue surged by 26.27% year-over-year (YoY) to Rs. 67.47 billion, reflecting strong sales performance.
However, the cost of revenue increased by 29.05%, leading to a gross profit of Rs. 16.04 billion, up by 19.26% compared to the prior year.
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Expense Breakdown & Profitability Analysis
- Selling & Distribution Expenses: Increased by 58.15% to Rs. 2.48 billion.
- Administrative Costs: Rose by 21.03% to Rs. 4.82 billion.
- Research & Development Costs: Declined by 16.06% to Rs. 92.26 million.
- Impairment Losses on Financial Assets: Surged by 362.13% to Rs. 485.87 million.
- Other Operating Expenses: Dropped significantly by 96.95% to Rs. 5.08 million.
As a result, total operating expenses grew by 30.69%, impacting overall profitability.
However, operating profit still showed modest growth of 4.33% YoY, reaching Rs. 8.15 billion.
Other Key Financial Indicators
- Other Income: Declined by 77.28% to Rs. 725.58 million.
- Share of Loss from Associates: Increased by 147.40% to Rs. 118.97 million.
- Finance Costs: Provided some relief, dropping by 51.99% to Rs. 465.26 million.
Consequently, profit before taxation and levy fell by 10.45% to Rs. 8.29 billion.
The company also recorded a levy expense of Rs. 474.93 million (down 17.40%) and a taxation charge of Rs. 356.35 million, marking a sharp increase of 276.41% YoY.
The overall profit for the year dropped by 14.14% to Rs. 7.46 billion, mainly due to a decline in total comprehensive income.
The basic earnings per share stood at Rs. 25.55, reflecting a 14.43% decrease from the previous year’s Rs. 29.86.
While profitability declined, the company’s revenue growth and strategic share restructuring indicate a long-term vision for financial stability and investor confidence.
