Systems Limited (PSX: SYS) has announced ambitious targets for CY25, aiming for topline growth of 26% in USD terms while expecting operating margins to expand by 4–5%. The management shared this outlook during its recent corporate briefing, which also reviewed the company’s 2024 financial performance. With a strong backlog, new client wins, and an expanded international footprint, the company is confident that its momentum will continue into 2025, reflecting both its resilience and adaptability within the fast-evolving IT services landscape.
In CY24, Systems Limited reported revenues of $242.35 million, reflecting a 27% growth in USD terms, while EBITDA stood at $35.94 million, showing just a 2% increase compared to the prior year. EBITDA margins slipped to 15% in 2024 from 18% in 2023, a decline partly attributed to the appreciation of the PKR, which went against management’s original assumption of a 5% depreciation. Despite these challenges, management emphasized that steps have been taken to rationalize costs and drive efficiency. Measures include maintaining fixed costs, optimizing its bench, controlling wage increments, and strengthening productivity. The company highlighted that, unlike in 2024 when average employee increments were 20% due to inflationary pressures and talent migration, the wage cycle for 2025 will be more moderate. Visa restrictions abroad have also stabilized workforce retention, allowing SYS to manage human capital more strategically.
During the briefing, management addressed investor concerns regarding revenue scalability. When asked whether revenues could exceed $300 million in CY25, executives expressed optimism, citing a robust pipeline of bookings and backlog that supports the growth trajectory. The company clarified that financial planning for 2025 is based on a stable PKR/USD exchange rate, reinforcing that SYS intends to drive profitability from operational improvements rather than relying on currency movements. With 94% of revenues denominated in foreign currency, the business remains strongly export-focused, while 43% of costs are in foreign currency and 57% in PKR, ensuring a balanced risk profile.
The management also noted opportunities arising from the recent US tariffs, which have not targeted services exports. Instead, the higher costs faced by clients could incentivize greater outsourcing, benefiting providers like Systems Limited. The company is leveraging AI-driven solutions and automation to enhance efficiency while continuing to expand its outsourcing partnerships. SYS currently serves more than 250 active clients worldwide, compared to 236 in 2023, and has secured a large account contributing over $25 million in annual recurring revenues. Management indicated that this success illustrates the potential for scaling other accounts into high-value long-term partnerships.
Systems Limited’s workforce is primarily based in Pakistan, representing 82% of employees, with an additional 12% in the UAE, 3% in Egypt, and smaller proportions in Qatar, Saudi Arabia, and the APAC region. Notably, Egypt’s share of the workforce has grown from 0.55% in 2022 to 3.19% in 2024, reflecting the company’s focus on diversifying talent hubs. The company continues to explore new market opportunities, particularly in Saudi Arabia, where it currently holds a small share but sees significant room for growth. SYS remains a certified technology partner of global leaders including Microsoft, IBM, Salesforce, Amazon, and Temenos. Its recognition among the Top 100 Microsoft partners and membership in the Inner Circle further strengthens its reputation as a leading IT services provider from Pakistan on the global stage.
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