Systems Limited posts record Rs5.1bn operating profit in 1H2025

KARACHI: Systems Limited (SYS) recorded the highest-ever operating profit of Rs5.1 billion in first half of the year 2025. Revenue went up by 18pc, followed by a 59pc growth in earnings, mainly led by exchange gains due to PKR depreciation during the period.

This was disclosed by SYS during its corporate briefing to discuss 1H2025 financial results and future outlook on Friday.

While the management is yet to disclose specific details about the acquisition of BAT SAA Services, they noted that it presents an entirely new growth avenue for the company.

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SYS also confirmed that the acquired company will operate as an independent entity under Systems Group, according to the Topline Securities report.

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On the M&A front, the management stated that they are actively exploring more such opportunities, not just from a revenue growth perspective but also for talent acquisition.

Several loss-making contracts in the domestic market have been exited, resulting in positive gross margins in the region in 1H2025.

Management expects the remaining unprofitable contracts to be terminated by year-end, which would further improve margins.

The company does not plan on withdrawing from the Pakistan market, with the segment expected to continue contributing around 15-20pc of the total revenue.

The company remains focused on Saudi Arabia as a key growth market. Management sees slowdown in the region as cyclical and expects a rebound ahead, the report went on to add.

The human resource dispersion of the company is composed of 83pc in Pakistan, 11pc in UAE and 2.5pc in Egypt. The remaining 3.5pc are in Qatar, Saudi Arabia and APAC.

Management highlighted that employee attrition has declined to around 15–18pc. To improve retention, the company is actively implementing initiatives such as ESOPs and enhanced training and development programs. Management also reaffirmed that Pakistan will remain the company’s primary employee base.

SYS has 93pc of revenue in foreign currency and the rest in PKR. Whereas 58pc of the costs incurred in HY2025 are in PKR and the remaining 42pc in foreign currency.

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SYS is a certified technology partner of brands such as Microsoft, IBM, Salesforce, Amazon and Temenos. The company has received numerous awards for its services and is a Top 100 partner of Microsoft by being part of Inner circle, Topline report further added.

Syed Raza Hassan