Karachi, Systems Limited (SYS) unveiled its financial results for the calendar year 2023 (CY23), reporting a consolidated profit of Rs8.7 billion, an increase of 31% year-on-year (YoY). The announcement followed a corporate briefing that provided insights into the company's performance and future projections.

According to JS Global, the software giant shared its achievements and strategic outlook in a recent meeting. Systems Limited has demonstrated robust topline growth, with a five-year compound annual growth rate (CAGR) of 59%, primarily fueled by its engagements in the Banking, Financial Services, and Insurance (BFSI) sector. Notably, the company's revenue in foreign currency has escalated, accounting for 95% of its total revenue, up from 85% in the previous year.

However, despite the positive growth trajectory, Systems Limited faces challenges that affect its profitability margins. The company noted a year-on-year decline in margins, attributed to factors such as currency devaluation, which has increased onsite operational costs, and higher expenses associated with licenses, subscriptions, and hiring resources in foreign markets.

Looking ahead, Systems Limited anticipates that its emphasis on growth will result in sustained lower profitability margins. The company expects its gross margins to stabilize between 20% and 25% over the medium term, reflecting the strategic focus on expansion and market penetration at the cost of short-term profitability.