Systems Ltd. is the first Pakistani IT company to have a market capitalization of more than Rs. 100 billion.

ByFaisal Chughtai | Published date:
systems-ltd-the-first-pakistani-it-firm-to-have-market-capitalization-of-102-billion

(Image credit: Systems Ltd)

Systems Limited has become Pakistan's first technology firm with a market capitalization of more than Rs. 100 billion. According to the news release, the share price of the information technology firm is presently Rs. 740.93. This gives it a market value of Rs. 102 billion.

Intermarket Securities Limited analyst Rahul Hans said that the brokerage firm's expectations for the business had been raised. He went on to say that "SYS has delivered higher-than-expected revenues/profits in 1HCY21 to warrant the upgrade."

Systems Limited's financial performance has been steady, with a 42 percent increase in earnings from January to June 2021, compared to the same period the previous year. According to the financial data reported to PSX, the company's net profit rose from Rs. 1.067 billion to Rs. 1.514 billion.

Systems Limited's revenue increased by 50% year on year to Rs. 3.5 billion in the second quarter of the fiscal year 2021. This was 15% more than the company's revenue of Rs. 2.30 billion in the first quarter of the fiscal year 2021.

In the second quarter of 2021, Systems Limited's free cash flow was Rs. 543 million. Its gross profit margin was 34% in the second quarter of 2021, while its operational profit margin was 22%.

In the second quarter, the business serviced 291 active customers, with 16 clients contributing more than Rs. 1 million in revenue. It said that it plans to utilize its "strong cash flow situation" to expand into other markets, improve its infrastructure, and invest in the country's startup environment. For Rs. 468 million, the firm recently purchased a 20% interest in Retailistan (a retail technology startup).

Asif Peer, CEO of Systems Limited, recognized the company's positive growth trajectory and stated, "With an aggressive focus on the advanced, well-poised technological solutions and under the leadership of dedicated professionals and industry veterans, we will be able to expand our operations in Europe and other global markets and lead the way."

Comment