KARACHI:
Systems Ltd reported a strong financial performance for the fourth quarter of CY25, with profit after tax rising 53% year-on-year to Rs3.1 billion, supported by higher revenues and improved margins.
The company’s net sales grew 20% YoY to Rs22.97 billion in the quarter, reflecting continued demand for IT services and export-driven growth.
Revenue Growth and Margin Expansion
Gross profit surged 57% YoY to Rs6.98 billion, significantly outpacing revenue growth, indicating improved cost efficiency and better pricing power.
Gross margins expanded to 30.4% from 23.2% a year earlier, highlighting operational strength.
Operating profit climbed 97% YoY to Rs4.19 billion, as operating margins improved to 18.3% compared to 11.1% in the same period last year.
The strong margin expansion suggests the company benefited from a favorable business mix and currency dynamics, which typically support export-oriented IT firms.
Full-Year Performance Remains Strong
For the full year CY25, Systems Ltd posted profit after tax of Rs11.04 billion, up 48% YoY, while revenues increased 19% to Rs80.39 billion.
Earnings per share (EPS) for the year stood at Rs7.53 compared to Rs5.12 in CY24, reflecting sustained profitability growth.
The company also announced a final dividend of Rs2.0 per share, maintaining shareholder returns.
Despite higher administrative and selling expenses, which rose 25% YoY, overall profitability remained strong due to higher topline growth and margin improvements.
Analysts note that Systems Ltd continues to benefit from global IT outsourcing demand, positioning it as one of Pakistan’s leading tech exporters.