March 26, 2020, Lahore – Systems Limited (PSX: SYS) has closed yet another profitable year with consolidated profits of Rs. 1.56 billion, up to 48% from Rs. 1.06 billion in 2018.
During 2019, the cost of sales was Rs. 5.16 billion, up by 36.15%, while tax expenses went down by 29.77%, resulting in gross profits of Rs. 2.36 billion, up 55%. Basic earnings per share also increased 46% from Rs. 8.72 to Rs. 12.86 per share.
Over 77% of the company’s revenue comes from contracts in international markets, which increased by 45% to Rs. 5.8 billion. This was the result of a stronger presence in developed markets, increased recurring revenue from operations in the MEA region, and business growth in North America. Currency devaluation and being a major player in ongoing public-sector digitalization also contributed to higher consolidated profits.
Despite the economic effects looming in the market due to the global pandemic, Asif Peer is staying hopeful for the company’s future.
“For us, thankfully the diversifications that we undertook in 2019 are now paying off. Some of our customers in segments like insurance, telecom and mortgage are not much affected, and neither are digital-only companies. If the crisis is over in two to three months, SYS will be just fine.”
While elaborating on the importance of going digital now, Asif Peer said, “Companies who wouldn’t work with us before are now calling us to provide back-end BPO services. This is volume-driven work, and right now India is completely offline. Local industry can cater such new clients, who will stick around in long run, if the government makes exception for call-center professionals to go to work. This is the time to showcase Pakistan’s digital capabilities.”
Founded in 1977, Systems Limited is a leading global technology and business process outsourcing service provider, delivering innovative business solutions and technology-led BPO services. With over 4,000 employees globally, Systems Limited helps its customers around the world maximize their IT investments and creates specialized solutions that drive business results. These solutions leverage deep technical skills, domain expertise, products, frameworks, accelerators, and industry best practices that offer customer’s substantial competitive advantage.