Islamabad: Systems Limited reported its highest ever quarterly revenue of PKR 17.3 billion for the third quarter of CY24, marking a significant 22% increase from the same period last year. The company’s focus has shifted towards maximizing returns from existing investments and enhancing its presence in the Middle East and North Africa (MENA) region, particularly in Saudi Arabia.

According to AKD Securities Limited, the robust revenue growth was attributed to the addition of 10 new enterprise customers this year, alongside increased earnings from the existing client base. Notably, 93% of the total revenue was generated in foreign currency. The number of clients contributing revenue above US$100,000 increased to 251 from 236 in CY23.

Despite facing challenges from inflation and currency appreciation impacting business costs, Systems Limited managed to improve its gross margins to 25.3% this quarter, up from earlier in the year but still below the 27.3% from the same period last year. The improvement in margins has been partly due to prior investments in technologies such as artificial intelligence, which are now starting to yield financial results.

The management has decided to refocus its strategy, moving away from pursuing new markets and segments and instead prioritizing the onboarding of more lucrative enterprise clients. This strategic shift includes deprioritizing efforts in small to medium-sized client segments and reducing the pursuit of opportunities in the Asia-Pacific and Africa regions.

Systems Limited plans to enhance its gross margins in Pakistan by focusing more on enterprise clients, aiming for higher profitability rather than just revenue growth. The company’s strategic refocus is expected to leverage untapped potential in the MENA region, with a concerted effort to expand operations in Saudi Arabia.