AKD Securities Limited - Off the Analyst's Desk.

Karachi -- October 26, 2022 (PPI-OT)

SYSTEM: 3QCY22 Result Review

Systems Limited (SYS) announced its 3QCY22 result today where it posted NPAT of PkR2.15bn (EPS: PkR7.7), in line with our expectations and growing by 22%QoQ compared to earnings of PkR1.8bn (EPS: PkR6.3) in 2QCY22. Tremendous growth is witnessed on YoY basis, where the earnings have doubled (~113% growth) compared to 3QCY21. This brings cumulative earnings for 9MCY22 to PkR5.2bn (EPS: PkR18.5), up by 104%YoY.

Consolidated revenue for the quarter has increased by 42%QoQ to reach PkR8.7bn, mainly due to the consolidation of NdcTech after the completion of the acquisition. Other factors include growth in export revenue due to expansions into new regions along with hefty Rupee depreciation. Moreover, Revenue has grown exponentially when compared to a topline of PkR4.0bn in SPLY, up by 118%YoY. Total Revenue for 9MCY22 has clocked in at PkR20.1bn, growing by...