Karachi, September 01, 2022 (PPI-OT): SYS: Corporate Briefing key takeaways

Systems Limited (SYS) recently announced 1HCY22 financial results wherein the company posted consolidated profit of Rs2,965mn (EPS: Rs10.62), +88% YoY. SYS held its corporate briefing today to discuss the half-year results and outlook. We present key takeaways from the session:

Company posted revenue growth of 75% in 2QCY22, whereas in dollar terms the revenue grew 38% YoY. 10-15% of revenue contribution came from recently acquired business NDC Tech.

Management shared that around 400 new IT professionals joined SYS during 1HCY22, bringing total employees to 5,570. The average annual revenue contribution/employee stood at US$30,000.

According to the management, 79% revenue of the company is dollar based, 6% Euro denominated while 15% is rupee based. On the other hand, 76% of the cost is rupee based.

USA was the main contributor to revenue having a share of 44% in topline, followed by Middle East with 41% share, while 15% share came from local business.

Management shared that 93% of the revenue is of a recurring nature from existing customers. The total number of clients expanded to 108 from 80 in the SPLY. Top 20 clients contributed about 53% to the overall revenue.

Management apprised that its portfolio of investments is also doing well. Its associates, Jomo and Jugnu are involved in the e-commerce business. Its wholly owned subsidiary, NDC Tech, has presence in 17+ countries and has 75+ banking clients. The company has 20+ years of experience in the segment. Company has also recently acquired a 100% stake in Treehouse consultancy which is in a similar business line as Systems Ltd.

According to the management, SYS has constituted a research team of highly skilled professionals to explore opportunities in the NFTs, metaverse and web-3 space.