Systems Limited held its corporate briefing today to brief on the performance of the company during the first half of the year. The promising growth and expansion into foreign markets were covered well during the briefing. A sales CAGR of 49% for the last 5 years speaks volumes of the company’s commitment to growth. Let’s dive deeper into their numbers to see where the company stands, and more importantly, where it is headed.
Driven by digital
The company’s business is mainly driven by its digital services segment, which accounts for 80% of its revenues. The remaining is filled by Managed Services (15%) and BPO (5%).
Client Composition
The company’s number of active clients went from 80 in HY 2021 to 108 in HY 2022. An active client, as defined by the company, is one that brings in a revenue of more than $100k.
The top client for Systems Limited contributes 12% of its total revenues, while the top 5 clients make up 29%. Here is a breakdown of these numbers and their comparison with two prior years.
Global Presence
Systems Limited is a global company, with a presence in 11 different countries. As a consequence, most of its revenue is in US Dollars. To be precise, 79% of its revenue comes in USD. As a Pakistani company, this gives the company a unique edge, especially considering that 76% of the company’s costs are incurred in Pakistan.
In short, this means the company spends its money in Pakistan while earning in foreign countries, bringing in much-needed USD revenue for the country.
Future Outlook
In response to a question asked by an analyst during the corporate briefing, the management showed confidence in the company’s ability to continue growing despite a global recession. Only the BPO segment of the company might be adversely affected, but it forms only 5% of its revenues.
The management was also confident about retaining a long-term relationship with its clients even after a project is finished. It plans to continue to expand its global presence through mergers and acquisitions as well as seek high-potential investments for its existing and future clients.
