26 October 2022
The General Manager
Pakistan Stock Exchange
Stock Exchange Building
Stock Exchange Road
Karachi
Subject: FINANCIAL RESULTS FOR THE 3rd QUARTER ENDED 30 SEPTEMBER 2022
Dear Sir,
We have to inform you that the Board of Directors of the Company in their meeting dated: 25 October 2022 have approved the financial statements for the nine months period ended 30 September 2022 and recommend the following:
DIVIDEND
Nil.
BONUS SHARES
Nil.
FINANCIAL RESULTS
Financial results of the Company are attached hereto as Annexure - Aand Annexure B.
PERFORMANCE OVERVIEW
The Company (Standalone):
During period under review, standalone revenue grew 82% over same period last year from Rs. 8,129.547 million to Rs. 14,798.176 million. As a consequence, Gross profit and Operating profit are 70% and 69% higher respectively, delivering a leveraged operating performance for the company. Additionally, continued devaluation of the Pak Rupee resulted in an exchange
gain of Rs 1,172.07 million compared to the gain in September 2021 of Rs 204 million increasing Net profit by 108%, from Rs. 2,310.142 million to Rs. 4,816.210 million. Basic and diluted earnings per share both increased by 107% in line with profit for the period. The growth in revenue net of the impact of exchange gain is 45%.
The increase in revenue has been contributed to by all regions, however, Middle East takes the lead.
The Group (Consolidated):
In line with the unconsolidated results, the consolidated revenue grew by 91% from Rs. 10,524.24 million to Rs. 20,144.84 million. Since the financials of both the newly acquired entities, the NDCTech and Treehouse were consolidated w.e.f. July 1,2022, the impact of this is Rs 895.35 million in the revenue.
Gross profit and operating profit increased 77% and 75% respectively. Net profit for the period is Rs. 5,115.71 million is 103% higher than the same period last year, including the Rs. 1,178.89 million exchange gain. Basic and diluted earnings per share both increased by 96% in line with profit for the period. Eliminating the currency impact, revenue is up by 53% in US dollar terms.
The Quarterly Report of the Company for the nine months period ended 30 September 2022 will be transmitted through PUCARS separately, within the specified time.
For and on behalf of Systems Limited
Saad Hasan Aslam
Company Secretary
SYSTEMS LIMITED
CONDENSED UNCONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)
AS AT SEPTEMBER 30, 2022 | ||||
Un-audited | Audited | |||
30 September | 31 December | |||
ASSETS | Note | 2022 | 2021 | |
Rupees | ||||
Non-current assets | 5 | |||
Property and equipment | 2,588,763,094 | 2,006,791,106 | ||
Right-of-use assets | 504,509,336 | 288,981,476 | ||
Intangibles | 6 | 16,016,225 | 23,717,704 | |
Long term investments | 5,757,238,322 | 1,331,133,678 | ||
Long term loans | 316,203,123 | 36,796,454 | ||
Deferred employee benefits | 108,622,053 | 10,344,054 | ||
Long term deposits | 47,834,821 | 141,294,105 | ||
Deferred taxation - net | 51,952,243 | 75,060,282 | ||
9,391,139,217 | 3,914,118,859 | |||
Current assets | ||||
Contract assets | 7 | 856,821,488 | 333,597,502 | |
Trade debts | 6,888,164,409 | 3,445,521,825 | ||
Loans, advances and other receivables | 680,102,304 | 538,568,661 | ||
Current portion of deferred employee benefits | 2,750,240 | 2,890,139 | ||
Trade deposits and short term prepayments | 362,550,018 | 248,588,820 | ||
Interest accrued | 63,555,979 | 30,922,102 | ||
Tax refunds due from the Government | 8 | 164,873,319 | 207,375,462 | |
Short term investments | 5,197,943,440 | 4,866,676,912 | ||
Cash and bank balances | 9 | 1,385,036,877 | 1,652,613,846 | |
TOTAL ASSETS | 15,601,798,074 | 11,326,755,269 | ||
24,992,937,291 | 15,240,874,128 | |||
EQUITY AND LIABILITIES | ||||
Share capital and reserves | ||||
Authorized share capital | ||||
400,000,000 (2021: 400,000,000) ordinary shares of Rs 10 each | 4,000,000,000 | 4,000,000,000 | ||
Issued, subscribed and paid-up share capital | 10 | 2,784,051,990 | 1,384,989,120 | |
Capital reserves | 4,937,495,843 | 1,020,484,116 | ||
Shares to be issued | 118,225,000 | - | ||
Revenue reserve - Unappropriated profit | 10,796,328,156 | 8,067,856,280 | ||
18,636,100,989 | 10,473,329,516 | |||
Non-current liabilities | ||||
Long term advances | 9,317,992 | 81,111,314 | ||
Lease liabilities | 506,288,453 | 238,881,185 | ||
515,606,445 | 319,992,499 | |||
Current liabilities | 11 | |||
Trade and other payables | 1,633,536,345 | 1,162,101,750 | ||
Unclaimed dividend | 16,326,537 | 9,226,244 | ||
Contract liabilities | 154,669,072 | 378,374,906 | ||
Short term borrowings | 3,950,000,000 | 2,750,000,000 | ||
Accrued mark-up on borrowings | 41,126,825 | 13,702 | ||
Current portion of lease liabilities | 17,558,875 | 62,195,197 | ||
Current portion of long term loan | 26,389,503 | 76,816,085 | ||
Current portion of deferred grant | - | 1,958,993 | ||
Current portion of long term advances | 1,622,700 | 6,865,236 | ||
TOTAL EQUITY AND LIABILITIES | 5,841,229,857 | 4,447,552,113 | ||
24,992,937,291 | 15,240,874,128 | |||
CONTINGENCIES AND COMMITMENTS | 12 |
The annexed notes from 1 to 22 form an integral part of these condensed unconsolidated interim financial statements.
(CHAIRMAN) | (CHIEF EXECUTIVE) | (CHIEF FINANCIAL OFFICER) |
SYSTEMS LIMITED
CONDENSED UNCONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED) FOR THE NINE MONTHS AND THREE MONTHS PERIOD ENDED SEPTEMBER 30, 2022
Nine Months Ended | Three Months Ended | |||||||
September 30, | September 30, | September 30, | September 30, | |||||
Note | 2022 | 2021 | 2022 | 2021 | ||||
Rupees | ||||||||
Revenue from contracts with customers - net | 14,798,176,063 | 8,129,547,547 | 6,006,321,647 | 3,136,977,934 | ||||
Cost of revenue | (9,977,569,921) | (5,294,542,589) | (4,020,942,176) | (2,070,090,209) | ||||
Gross profit | 4,820,606,142 | 2,835,004,958 | 1,985,379,471 | 1,066,887,725 | ||||
Administrative expenses | (1,141,370,488) | (641,176,591) | (449,046,364) | (256,146,138) | ||||
Distribution expenses | (183,735,682) | (129,643,480) | (62,402,672) | (52,484,554) | ||||
Impairment losses on financial assets | (50,726,270) | (30,883,161) | (52,446,272) | (47,335,905) | ||||
Operating profit | 3,444,773,702 | 2,033,301,726 | 1,421,484,163 | 710,921,128 | ||||
Other income | 13 | 1,765,174,191 | 384,309,899 | 752,099,849 | 290,223,372 | |||
Finance costs | (131,414,801) | (57,314,737) | (52,290,687) | (21,531,307) | ||||
Profit before taxation | ||||||||
5,078,533,092 | 2,360,296,888 | 2,121,293,325 | 979,613,193 | |||||
Taxation | (262,322,216) | (49,875,947) | (97,242,881) | (18,792,514) | ||||
Profit for the period | ||||||||
4,816,210,876 | 2,310,420,941 | 2,024,050,444 | 960,820,679 | |||||
(Restated) | (Restated) | |||||||
Earnings per share: | ||||||||
Basic earnings per share | 14 | 17.39 | 8.40 | 7.27 | 3.48 | |||
Diluted earnings per share | 17.29 | 8.35 | 7.22 | 3.47 | ||||
The annexed notes from 1 to 22 form an integral part of these condensed unconsolidated interim financial statements.
(CHAIRMAN) | (CHIEF EXECUTIVE) | (CHIEF FINANCIAL OFFICER) |
SYSTEMS LIMITED
CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2022 (UNAUDITED)
Unaudited | Audited | ||
30 September | 31 December | ||
ASSETS | Note | 2022 | 2021 |
Rupees | Rupees | ||
Non-current assets | 2,729,685,415 | ||
Property and equipment | 7 | 2,051,800,034 | |
Intangible | 6,927,923,795 | 23,717,704 | |
Long term investments | 8 | 238,555,000 | 144,568,896 |
Investment in Associates | 1,042,639,288 | 1,274,009,734 | |
Right-of-use asset | 504,509,336 | 288,981,475 | |
Long term loans | 316,203,123 | 36,796,454 | |
Deferred taxation - net | 51,952,243 | 75,060,282 | |
Deferred employee benefits | 108,622,053 | 10,344,054 | |
Long term deposits | 94,041,301 | 141,294,105 | |
12,014,131,554 | 4,046,572,738 | ||
Current assets | |||
Contract assets | 2,209,469,804 | 727,944,400 | |
Trade debts | 9 | 8,721,040,747 | 4,125,928,299 |
Loans, advances and other receivables | 764,229,273 | 734,667,764 | |
Trade deposits and short term prepayments | 1,589,542,933 | 323,149,962 | |
Interest accrued | 7,065,299 | 11,118,877 | |
Short term investments | 10 | 5,197,943,440 | 4,866,676,912 |
Tax refunds due from the Government | 242,823,201 | 213,640,998 | |
Current portion of deferred employee benefits | 167,565,943 | 2,890,139 | |
Cash and bank balances | 11 | 3,572,066,534 | 2,978,863,741 |
TOTAL ASSETS | 22,471,747,174 | 13,984,881,092 | |
34,485,878,728 | 18,031,453,830 | ||
EQUITY AND LIABILITIES | |||
Share capital and reserves | |||
Authorized share capital | 4,000,000,000 | ||
400,000,000 (2021: 400,000,000) ordinary shares of Rs. 10 each | 4,000,000,000 | ||
Issued, subscribed and paid up share capital | 12 | 2,784,051,990 | 1,384,989,120 |
Capital and reserves | 5,513,739,410 | 1,148,309,400 | |
Shares to be issued | 118,225,000 | - | |
Unappropriated profits | 12,556,411,274 | 9,528,306,407 | |
20,972,427,674 | 12,061,604,927 | ||
Non-controlling interest | 1,038,497 | 1,169,928 | |
20,973,466,171 | 12,062,774,855 | ||
Non-current liabilities | |||
Long term advances | 227,046,277 | 81,111,314 | |
Lease Liability | 506,288,453 | 238,881,185 | |
Provision for gratuity | 176,157,327 | 94,865,412 | |
909,492,057 | 414,857,911 | ||
Current liabilities | |||
Trade and other payables | 13 | 6,355,425,952 | 1,706,609,735 |
Unclaimed Dividend | 16,326,537 | 9,226,244 | |
Contract Liability | 2,208,065,129 | 940,135,872 | |
Mark-up accrued on short term borrowings | 27,531,805 | 13,702 | |
Short term borrowings | 3,950,000,000 | 2,750,000,000 | |
Current Portion of lease liability | 17,558,875 | 62,195,197 | |
Current Portion of long term loan | 26,389,503 | 76,816,085 | |
Current Portion of deferred grant | - | 1,958,993 | |
Current portion of long term advances | 1,622,700 | 6,865,236 | |
12,602,920,501 | 5,553,821,064 | ||
TOTAL EQUITY & LIABILITIES | |||
34,485,878,728 | 18,031,453,830 | ||
CONTINGENCIES AND COMMITMENTS | 15 |
The annexed notes from 1 to 23 form an integral part of this condensed interim financial information.
(CHAIRMAN) | (CHIEF EXECUTIVE OFFICER) | (CHIEF FINANCIAL OFFICER) |
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Systems Ltd. published this content on 26 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2022 04:27:06 UTC.