PakStox Outlook

SYS: Financial Results - Year Ended 31 December 2023 EPS : Rs 29.4 declining 30% over last year. Cash Dividend Rs. 6 per share. However, a notable increase in financial charges and the slight decline in gross margin as well. Sales Growth: SYS reported a remarkable 55% increase in sales revenue, reaching Rs 32,037.9 million in 2023.  “The Company’s revenue comes primarily from Digital/Data/Cloud Services, Managed Services, Consulting Services, IT outsourcing and Business Process Outsourcing/Contact Center. The Company generates over 80% of its revenue from export of Services to various geographies such as North America, Europe, Asia Pacific and Middle East and less than 20% from domestic market. The Company is well diversified into various business verticals such as Banking and Finance, Telco, Retail, CPG, Pharma, and Public sector.”

Notes from 3rd Quarter Report (Sep 2022) Export sales of the Company are roughly 80% of total sales, with the Company’s target being to further increase the export component going forward.  Growth across all four geographies, with the Middle East Region leading. The GCC region has not been impacted by inflation and economic slowdown and there is sustained demand and growth in the region. UAE subsidiary has become a key contributor to the business as the Company has signed key strategic accounts with a diversified portfolio and growth opportunities that are expected to provide the Company with recurring revenue for future growth.