Skip to main content

Systems Limited (PSX:SYS)

Notes from 3rd Quarter Report (Sep 2022)

  • Export sales of the Company are roughly 80% of total sales, with the Company’s target being to further increase the export component going forward. 
  • Growth across all four geographies, with the Middle East Region leading.
  • The GCC region has not been impacted by inflation and economic slowdown and there is sustained demand and growth in the region. UAE subsidiary has become a key contributor to the business as the Company has signed key strategic accounts with a diversified portfolio and growth opportunities that are expected to provide the Company with recurring revenue for future growth. 
  • Systems Arabia has also secured multi-year contracts with Saudi businesses and is fully aligned with Saudi Vision 2030 from the technology and digitization perspective.
  • The Company envisages opportunities to grow in the financial, telecommunications, and public sector entities of KSA, which has been the core strength of its service offerings. 
  • In line with Company’s strategy to focus more on IT consulting in all markets with the US and
  • Europe at the forefront, the Company expects this growth to continue due to the relevance of the various service domains and technology stack the Company is targeting. 
  • Systems Ltd., is locking most of its domestic contracts in USD, thereby increasing dollar based revenue for the company and hedging the foreign currency risk.
  • To sustain the hyper-growth mode, Systems has hired over 300 software engineers in the 3rd quarter (Sep2022) is quarter and is aggressively working on the training and development of resources to fuel future growth and have a cost-effective HR pool.
  • With the strategic collaboration with Sarmayacar and Sharooq Partners, E-Processing Systems (EPS) is deepening its penetration of the micro-retailer base. 
  • System's associate, Jugnu launched its Buy Now, Pay Later (BNPL) solution for SME retailers earlier this year after securing $22.5 million of funding in series-A from SARY (MENA-based B2B e-commerce giant). 
  • Gross Profit: Geographical Distribution:
  • Rs. Million9 Months
    Sep2022
    Middle East269542%
    North America253940%
    Pakistan65710%
    Europe4697%
    6359100%

Download 3rd Quarter Financial Reports. Link
Labels:

Popular posts from this blog

Brent Crude Logs Biggest Weekly Drop Since September on Weak Demand, Easing Tensions

Oil prices were under pressure this week. Brent crude oil futures fell 1.9% to $73 per barrel on Friday, registering the biggest weekly loss since early September, with prices dropping over 7%. The decline was attributed to weaker demand forecasts from OPEC and the International Energy Agency (IEA), slowing economic growth in China, and signs of easing geopolitical tensions in the Middle East. Both OPEC and the IEA revised down their demand forecasts for 2024 and 2025. China's refinery output declined for the sixth consecutive month, impacted by weak fuel demand and the growing adoption of electric vehicles (EVs). Meanwhile, U.S. crude oil production reached a new record last week. Although a drawdown in U.S. crude inventories and stronger-than-expected retail sales in September provided some support to oil prices, easing concerns about a broader conflict in the Middle East exerted additional downward pressure on the market.
Read more
 A Snapshot of Exchange Traded Funds at PSX
Read more

PSX Strongly Rebounds

The Pakistan Stock Exchange (PSX) reacted positively to the conclusion of the IMF staff-level agreement and has now recovered a substantial part of the losses sustained on Monday. Today, out of the 1,139-point gain in the KSE-100 Index, around 800 points were contributed by UBL, OGDC, PPL, and Meezan Bank.
Read more