Systems Limited (PSX: SYS) today announced impressive financial results for the first quarter of calendar year 2023 (Q1 2023), ending March 31st, 2023. The company achieved a significant year-over-year (YoY) profit growth of 223%, reaching a record high of Rs. 3.87 billion.

The company’s consolidated financial statements revealed a substantial increase in profit for Q1 2023, rising from Rs. 1.2 billion to Rs. 3.8 billion. Standalone revenue also witnessed a significant surge of 69% compared to the same period last year, reaching Rs. 6.8 billion from Rs. 4.07 billion. Gross profit and operating profit climbed by 51% and 81%, respectively, indicating strong operational performance.

The devaluation of the Pakistani Rupee during Q1 2023 positively impacted net profit through an exchange gain of Rs. 2.241 billion. This gain significantly contributed to the overall net profit growth of 241%, which rose from Rs. 1.06 billion to Rs. 3.6 billion.

Consolidated results mirrored the positive trends observed in standalone financials. Consolidated revenue grew by a remarkable 101% to Rs. 10.7 billion, compared to Rs. 5.3 billion in the corresponding quarter last year. Gross profit and operating profit also saw significant increases of 75% and 71%, respectively. The consolidated net profit reached Rs. 3.8 billion, reflecting a 223% YoY growth, with Rs. 2.38 billion attributed to exchange gains.

Other Financial Highlights:

• Other income for the company experienced a substantial jump of 663%, reaching Rs. 2.55 billion in Q1 2023 compared to Rs. 334 million in the previous year.
• Finance costs incurred by Systems Limited rose by 378% to Rs. 157 million during the quarter.
• Administrative expenses spiked by 81% to Rs. 785 million in Q1 2023 compared to Rs. 434 million in the previous year.
• The company’s tax liability also increased, with Rs. 112.9 million paid in Q1 2023 compared to Rs. 26.6 million in the corresponding period last year.
• Basic and diluted earnings per share (EPS) mirrored profit growth, rising by 208% and 207% to Rs. 13.36 and Rs. 13.24, respectively.
• When compared to Q1 2022, revenue growth in US dollars reached 38%.

At the time of this press release, Systems Limited’s stock price (PSX: SYS) was Rs. 462, reflecting a slight decrease of 0.78% or Rs. 3.65. The trading volume for the day stood at 338,930 shares.

Systems Limited’s strong financial performance in Q1 2023 demonstrates the company’s continued growth and profitability. The company’s leadership will provide further insights and future outlooks in upcoming investor communications.