Systems Limited Posts 79% Profit Growth in First Half of 2023

Systems Limited (PSX: SYS) had a strong performance with a significant 79 percent year-on-year profit growth in the first half of 2023, ending on June 30th. The company’s consolidated financial results show that the profit for this period increased from Rs. 2.96 billion to Rs. 5.29 billion.

In the second quarter (Q2), the company’s profit after tax (PAT) was Rs. 1.4 billion, which is a 20 percent decrease compared to Rs. 1.76 billion in the same period last year. SYS did not announce any cash dividends for this period.

The company’s consolidated revenue also saw substantial growth, increasing by 102 percent from Rs. 11,463.24 million to Rs. 23,189.16 million compared to the same period last year. Gross profit and operating profit increased by 71 percent and 41 percent, respectively.

The growth in revenue has been driven by the Middle East region. However, investments in subsidiaries and inflationary pressures in the domestic market have affected margins.

Still, the company mentioned that optimizing revenue and costs has had a positive impact on margins quarter by quarter.