FLASHNEWS:

Systems Limited Outlines Growth Strategy at Emerging Markets Conference

Karachi: Systems Limited, a leading technology services provider, detailed its strategic plans for expansion in North America and Europe during the annual Emerging and Frontier Markets Conference hosted virtually by Auerbach Grayson and Topline Securities for foreign investors.

According to JS Global, the conference featured key insights from Systems Limited's CEO, Asif Peer, and CFO, Roohi Khan. The company aims to enhance its footprint in the retail and consumer packaged goods sectors, with a growth strategy that includes both organic and inorganic methods. Currently, these segments contribute approximately 20-30% of the company's revenue, a figure that management expects to increase through economies of scale and an outsourcing culture in the target regions.

Systems Limited's clientele includes 12-15 Fortune 500 companies, primarily in the US and Europe. The management sees potential to broaden the range of services offered to these high-profile accounts. Despite facing EBITDA margin pressures due to currency appreciation impacting PKR revenue, the company remains optimistic about its financial outlook, citing that 85-95% of its revenue backlog is recurring.

In 2026, Systems Limited added around 20 new customers in the US$1-5 million revenue category, with two clients advancing to the US$5-10 million category. The merger with Confiz has led to the reassignment of duplicate roles while retaining key talent through targeted training programs.

While the sales team represents less than 1% of the workforce, Systems Limited allocates 5-8% of its revenue to sales and marketing expenditures. Notably, the company has not observed a decline in growth in the Middle East segment, despite geopolitical tensions, attributing continued growth to public sector investments in AI technologies.

The company's stock is currently trading at a projected PE of 14.4x for 2026 and 11.4x for 2027, with analysts maintaining a "BUY" stance on Systems Limited.