Systems Limited (PSX: SYS), a pioneer of Pakistan’s IT and business process outsourcing landscape, continues to demonstrate resilient growth while navigating evolving market dynamics and cost pressures. Founded in 1977 and listed on the Pakistan Stock Exchange in 2015, the company has evolved into a formidable technology partner with deep ties across the US, UK, EU, Middle East, and an expanding footprint in the Asia Pacific.
As of December 2024, Systems Limited had over 292 million shares outstanding, largely held by directors with a 32 percent stake, followed by foreign companies at nearly 19 percent. Ex-employees, the general public, mutual funds, insurance outfits, and institutional investors collectively make up the remaining ownership—underscoring diverse stakeholder confidence.
From 2019 to 2024, Systems posted impressive topline expansion, though margins have experienced notable volatility. In 2019, revenue surged over 42 percent year-on-year to Rs.5.3 billion, driven by a strategic pivot toward major clients that secured steady business streams. This growth continued despite rising costs tied to expanding its workforce from under 2,300 to over 3,100 employees and additional software procurement. Operating profit jumped by over 71 percent in the same period, but net margins slipped slightly due to higher finance costs and reduced exchange gains.
The onset of COVID-19 in 2020 paradoxically unlocked fresh demand for digital solutions, propelling Systems’ revenues by over 40 percent to Rs.7.5 billion. Enhanced traction in software implementation and outsourcing services, coupled with a supportive currency depreciation, boosted both topline and bottomline, with net profit growing by over 60 percent.
In 2021 and 2022, Systems aggressively scaled operations, crossing Rs.20 billion in revenue by 2022 with exports—especially to the Middle East and North America—remaining the core driver. However, operating margins began to tighten under the weight of inflation, higher payrolls as the workforce grew past 5,000, and significant provisions on financial assets. The company still posted record profits of Rs.6.3 billion in 2022, buoyed by robust other income linked to currency movements.
By 2023 and 2024, as Systems’ revenue touched Rs.38.5 billion, margin pressures became more evident. Increased salaries, hardware and software costs, along with substantial impairment charges in 2024, pulled gross margins to their lowest in years. Nevertheless, prudent debt management saw its leverage drop to just 7 percent, cushioning some bottomline impact. Net profit for 2024 stood at Rs.6.1 billion with an EPS of Rs.20.80.
The start of 2025 has brought encouraging signs. For the first quarter, Systems recorded Rs.10.9 billion in revenue, up 19 percent year-on-year, with net profit jumping by over 62 percent as financing costs halved and other income rose on the back of exchange gains and subsidiary interest income.
Looking forward, Systems is doubling down on global markets, while recalibrating its local strategy to pivot from primarily serving the public sector to targeting large private enterprises, especially in telecom and financial services. New ventures into consultancy and solution selling, alongside upcoming partnerships, signal its intent to deepen and diversify its digital service portfolio.
As Pakistan’s flagship IT player, Systems Limited remains a bellwether for the country’s tech ambitions—steadily scaling, adapting to global currents, and fueling the broader digital transformation narrative both at home and abroad.