Jawad Ahmed ISLAMABAD, May 30 (INP-WealthPK): Consolidated revenues of Systems Limited, which is engaged in business of software development and trading and business process outsourcing services in Pakistan, grew by 55% to over Rs15 billion in the year 2021 from Rs9.8 billion during the previous year. With this, the company's net profit grew by 103% to Rs4.37 billion from Rs2.1 billion. Among the Pakistan’s leading software houses, Systems Limited (PSX: SYS) is a public limited company incorporated under the Companies Act, 2017, reports WealthPK. The Systems Limited has subsidiaries like TechVista Systems FZ LLC, SUS (Private) Limited (incorporated for Balochistan land record project), Systems Arabia LLC, Systems Venture (Private) Limited and an associated company - E-Processing Systems B.V. Shareholding pattern [caption id="attachment_67668" align="aligncenter" width="696"] Source: Company financial Report[/caption] As of December 31, 2021, the company's directors own 34% of the stock, while affiliated companies possessed 3% shares. Around 29% of the shares are owned by the general public, with local investors owning 10% and international investors owning 19% shares. Former corporate workers possess 14% of the total stock. Banks, development financial institutions and non-banking finance institutions collectively own almost 11% of the stock. Mutual funds own around 8% of the company's stock. The company's executives own only 1% shares. Company Turnover The Systems Limited’s top line has been steadily increasing, with a notable increase in overall revenues and profit ratio since 2017. In calendar year 2018, the company's revenues climbed by about 45% to Rs7.5 billion from Rs5.3 billion a year earlier. Profits grew by 83% over the previous year. The company’s revenue comes primarily from software development, managed services, consulting services and business process outsourcing/contact centre. [caption id="attachment_67667" align="aligncenter" width="696"] Source: FFC Annual Report/ WealthPK Research[/caption] In the year 2019, the company’s stand-alone revenues recorded at Rs7.5 billion grew by 42% compared to the year 2018. Gross profit was recorded at Rs1.3 billion in 2019, which is 83% more than the profit of previous year. The growth in revenue is mostly attributable to investments in new technologies, research and development initiatives, and worker training to satisfy future demand since technology evolves and develops at a rapid pace. [caption id="attachment_67666" align="aligncenter" width="696"] Source: FFC Annual Report/ WealthPK Research[/caption] In calendar year 2020, company’s consolidated revenue climbed by 31% to Rs9.87 billion from Rs7.5 billion. Gross profit increased by 59% to Rs9.8 billion from Rs7.5 billion. During year ended December 31, 2021, consolidated revenue grew by 55% to over Rs15 billion from Rs9.8 billion. Gross profit and operating profit increased by 53% and 50%, respectively. Net profit for the period increased by 103% to Rs4.3 billion from Rs2.16 billion, which included a one-time gain of Rs816 million arising from the conversion of EP Systems BV from a subsidiary to an associate. Basic and diluted earnings per share increased by 100% over the same period last year. [caption id="attachment_67665" align="aligncenter" width="696"] Source: FFC Annual Report/ WealthPK Research[/caption] The company derives 80% of its revenues from digital services and 20% through managed services. Successful delivery during the Covid-19 pandemic has strengthened the engagement with clients. Quarterly Report In first quarter of calendar year 2022, the company declared that its net profit surged by 99% to Rs1.2 billion from Rs604 million. The profit of Rs149 million is a gain due to exchange rate fluctuations, WealthPK reports. During the first quarter of CY22, consolidated revenues of the company registered a growth of 75% to Rs5.33 billion from Rs3.04 billion over the same period last year. Gross profit increased by 50% to Rs1.5 billion compared to Rs1 billion in the first quarter of previous year. On the other hand, income received by different sources climbed by 188% to Rs334 million. Basic and diluted earnings per share both increased by 75% in line with profit for the period. In dollar terms, revenue and profit grew by 53% and 74%, respectively. At the end of 1QCY22, the company's financial costs rose by 57% year-on-year to Rs33 million from Rs21 million. Higher interest rates and a spike in short-term borrowings caused the cost hike. During the quarter, the company's earnings per share were Rs8.66, up from Rs4.96 in the previous year's quarter.