Systems Limited (PSX: SYS) reported robust financial results for the second quarter of 2025, posting a profit after tax of Rs. 2,651 million (EPS: Rs. 1.81), up 59 percent compared to Rs. 1,672 million (EPS: Rs. 1.15) recorded in the same quarter last year. This strong performance was largely driven by higher revenues from technology services exports and improved gross margins, reinforcing the company’s position as one of Pakistan’s leading IT service providers. With this momentum, the company’s half-year earnings for 2025 stood at Rs. 5,152 million (EPS: Rs. 3.52), reflecting consistent growth across its core business operations.
Revenue growth remained steady as net sales for the first half of the year reached Rs. 36,739 million, an 18 percent increase compared to the corresponding period of 2024. Sales for the second quarter also climbed 18 percent year-on-year, amounting to Rs. 18.6 billion. Segment-wise, Telecommunications Services led the company’s growth trajectory with a 32 percent year-on-year rise, followed by Banking, Financial Services and Insurance (BFSI) at 21 percent, and Technology Solutions at 8 percent. BFSI and Telco emerged as the fastest-growing segments in terms of expansion, while Technology and Retail continued to contribute the highest levels of profitability, demonstrating the diversity and resilience of Systems Limited’s service portfolio.
Profitability was further enhanced by improved operational efficiencies. Gross margins for the quarter increased to 25.4 percent compared to 22.9 percent in the same period last year, supported by better productivity levels, higher billing rates, and tighter control over fixed costs. While administrative expenses rose by 41 percent year-on-year, largely due to inflationary pressure, the impact was offset by a significant decline in finance costs, which dropped by 45 percent to Rs. 76 million. The reduction was attributed primarily to falling interest rates, providing additional relief on the cost side of operations.
Systems Limited also booked an effective tax rate of 11 percent during the quarter compared to 11.5 percent a year earlier. The combination of higher revenues, improved margins, and reduced finance costs contributed to a substantial bottom-line improvement despite rising administrative expenses. The company’s results highlight the continued strength of Pakistan’s IT export sector, with demand from global clients enabling sustained growth across key verticals. As Systems Limited builds on this trajectory, its performance reflects not only operational efficiency but also the increasing global reliance on Pakistan’s IT services industry.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
