Systems Limited (PSX: SYS) has posted a profit after tax (PAT) of Rs. 2,651 million (EPS: Rs. 1.81) in 2QCY25 compared to Rs. 1,672 million (EPS: Rs. 1.15) during 2QCY24, up by 59 percent.
The increase was primarily driven by higher technology services exports and improved gross margins. This took the 1HCY25 earnings to Rs. 5,152 million (EPS: Rs. 3.52).
Net sales clocked in at Rs. 36,739 million during 1HCY25, registering an 18 percent YoY increase, while sales for 2QCY25 also grew by 18 percent YoY to Rs. 18.6 billion.
Segment- wise, Telecommunications Services led the way with a 32 percent YoY rise, followed by Banking, Financial Services & Insurance (BFSI) at 21 percent YoY, and Technology Solutions at 8 percent YoY. In terms of performance, BFSI and Telco remained the fastest- growing segments, whereas Technology and Retail continued to deliver the highest profitability.
Gross margins in 2QCY25 improved to 25.4 percent versus 22.9 percent in 2QCY24, supported by operational efficiency gains, productivity improvements, better billing rates, and effective control over fixed costs.
Administrative expenses augmented by 41 percent YoY during the quarter, which is due to inflationary pressure. Finance costs dropped by 45 percent YoY, settling at Rs. 76 million during 2QCY25, primarily due to a decline in interest rates.
The company booked effective taxation at 11 percent in 2QCY25 compared to 11.5 percent in 2QCY24.
Note: Report based on company’s result review by brokerage firm Arif Habib Limited.