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)

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

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.