Systems Limited Posts Rs. 2.65 billion profit in Q2 2025

KARACHI: Systems Limited (PSX: SYS) has reported a profit after tax (PAT) of Rs. 2.65 billion (EPS: Rs. 1.81) for the second quarter of calendar year 2025 (2QCY25), up 59% compared to Rs. 1.67 billion (EPS: Rs. 1.15) in the same period last year.

The surge in earnings was largely driven by higher technology services exports and improved gross margins. This lifted half-year (1HCY25) profits to Rs. 5.15 billion (EPS: Rs. 3.52).

Net sales rose 18% year-on-year (YoY), reaching Rs. 36.7 billion in 1HCY25, while quarterly revenues stood at Rs. 18.6 billion, also reflecting an 18% YoY increase.

Segment-wise, Telecommunications Services led with a 32% YoY rise, followed by Banking, Financial Services & Insurance (BFSI) at 21%, and Technology Solutions at 8%. BFSI and Telco were the fastest-growing verticals, while Technology and Retail remained the most profitable segments.

Gross margins strengthened to 25.4% in 2QCY25, up from 22.9% a year earlier, supported by efficiency gains, better billing rates, and cost control measures.

Administrative expenses, however, surged 41% YoY amid inflationary pressures. Finance costs fell 45% YoY to Rs. 76 million, reflecting a decline in interest rates. The company recorded an effective tax rate of 11% during the quarter, slightly lower than 11.5% in 2QCY24.