Systems : Financial Results for the Quarter Ended 30 June 2023
August 29, 2023 at 01:19 am EDT
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29 August 2023
The General Manager
Pakistan Stock Exchange
Stock Exchange Building
Stock Exchange Road
Karachi
Subject: FINANCIAL RESULTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2023
Dear Sir,
We have to inform you that the Board of Directors of the Company in their meeting dated: 28 August 2023 have approved the financial statements for the six months period ended 30 June
2023 and recommend the following:
DIVIDEND
Nil.
BONUS SHARES
Nil.
FINANCIAL RESULTS
Financial results of the Company are attached hereto as Annexure - Aand Annexure Balong with the Directors Report as Annexure - C.
PERFORMANCE OVERVIEW
The Company (Standalone):
During period under review, standalone revenue grew 62% over same period last year from Rs. 8,791.85 million to Rs. 14,210.44 million. Consequently, Gross profit and Operating profit are 41% and 34% higher than SPLY (same period last year) respectively. Margins remain under
stress due to significant inflationary pressures in the domestic market, partially eased by continued devaluation of the Pak Rupee resulting in a revaluation gain of Rs 2,355.52 million compared to the gain in June 2022 of Rs. 664.67 million increasing Net profit by 73%, from Rs. 2,792.16 million to Rs.4,821.90 million in this period. Basic and diluted earnings per share increased by 65% in line with profit for the period. The growth in revenue, net of the impact of exchange gain, is 11%.
The increase in revenue has been led by Middle East.
The Group (Consolidated):
In line with the unconsolidated results, consolidated revenue grew by 102% from Rs. 11,463.24 million to Rs. 23,189.16 million versus SPLY.
Gross profit and operating profit increased 71% and 41% respectively. Investment in subsidiaries along with inflationary pressures in the domestic market have impacted margins, however, optimization of revenue and costs has positively impacted margins quarter over quarter. Net profit for the period at Rs. 5,293.86 million is 79% higher than SPLY, including the Rs. 2,546.64 million exchange gain. Basic and diluted earnings per share increased by 71% and 70% respectively in line with profit for the period. Eliminating the currency impact, revenue is up by 39% in US dollar terms.
During the year ended December 31, 2022, the management had acquired 9% stake in the fastest growing fashion e-commerce brand of Pakistan, JOMO, as a strategic investment. However, considering the economic downturn in the country and delay in anticipated funding resulting in deteriorating liquidity and financial performance of the brand, the management believes that the carrying value of investment amounting to Rs 154. 46 million does not truly reflect its fair value. Hence the management, in the interest of prudence has taken requisite impairment of the investment.
The Company was absorbing a share of loss from another strategic investment in Retailistan/Jugnu which had been adversely impacting the margins. Since it has neutralized the cost of investment, no further adverse impact on profitability is expected.
For details, please refer to the attached Directors report.
For and on behalf of Systems Limited
Ali Ahmed Iftikhar
Company Secretary
16.5910.05
16.4510.00
4.06
4.03
233,394,869
(195,385,064)
1,319,834,132
(137,453,064)
1,182,381,068
(93,481,363)
(561,696,079)
(144,132,102)
(799,309,544)
1,281,824,327
7,337,587,741
(5,256,453,870)
2,081,133,871
-Basic -Diluted
Other income Finance costs
Profit before taxation Taxation
Profit for the year
Earnings per share
Selling and distribution expenses Administrative expenses Impairment losses on financial assets
Operating profit
Revenue from contracts with customers - net Cost of revenue
Gross profit
SYSTEMS LIMITED
CONDENSED UNCONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS {UN-AUDITED) FOR THE SIX MONTHS AND THREE MONTHS PERIODS ENDED JUNE 30, 2023
Note
Six Months Ended
Three Months Ended
June 30, 2023
June 30, 2022
June 30, 2023
June 30, 2022
Rupees
1114,210,447,645
(10,198,961,416)
4,011,486,229
(156,652,596)
(1,024,576,181)
(123,234,380)
(1,304,463,157)
2,707,023,072
122,646,201,703
(298,313,543)
5,054,911,232
(233,003,561)
4,821,907,671
13
8,791,854,416
(5,956,627,745)
2,835,226,671
(121,333,010)
(692,324,124)
1,720,002
(811,937,132)
2,023,289,539
1,013,074,342
(79,124,114)
2,957,239,767
(165,079,335)
2,792,160,432
4,720,207,340
(3,110,880,162)
1,609,327,178
(50,983,958)
(353,361,047)
30,497,452
(373,847,553)
1,235,479,625
678,328,642
(49,580,799)
1,864,227,468
(140,115,463)
1,724,112,005
6.19
The aooe,ed oote, 1 to 21 'if:o iotegral part of these coodeosed ooooosolidated iotecim fioaocial statemeots.
6.16
(CHAIRMAN)
(CHIEF EXECUTIVE)
(CHIEF FINANCIAL OFFICER)
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Systems Ltd. published this content on 29 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 August 2023 05:18:29 UTC.
Systems Limited is a Pakistan-based company, which is s principally engaged in the business of software development, trading of software and business process outsourcing services. The Company operates in four geographical segments: North America, Europe, Middle East, Africa and Others, and Pakistan. Its products include Partner Communication, Middleware Connector, Retail Analytics, HauteLogic, SysHCM and TrIPS. The Company provides a range of services, including consulting, implementation, managed services, and business process outsourcing. It serves a range of industries, including retail, financial services, public sector, insurance, healthcare, real estate, logistics, food services, transportation, oil and gas, education and telecommunication. The Company provides various solutions, including digital commerce, business applications, data management and analytics, business process outsourcing, cloud services, application development, and security.