Systems Limited Shareholders to Vote on Stock Split

Systems Limited has announced a 5-for-1 stock split, reducing the face value of its shares from Rs. 10 to Rs. 2 each. The company’s Board of Directors approved the move in line with Section 85(1)(c) of the Companies Act, 2017. Shareholder approval is still required for the decision to take effect. This means every existing share will be divided into five, increasing the total number of ordinary shares from 292.9 million to 1.46 billion. Arif Habib Limited noted that this move is aimed at enhancing investor accessibility and improving market liquidity.

Alongside this, Systems Limited released its financial results for 2024. The company reported revenue of Rs. 67.47 billion, a 26% increase from Rs. 53.43 billion in 2023. However, net profit declined by 14% to Rs. 7.46 billion, largely due to an exchange loss of Rs. 264.47 million. In contrast, the company had recorded an exchange gain of Rs. 2.26 billion in 2023.

Since 2020, Systems Limited has maintained a 50% compound annual growth rate in revenue, primarily driven by IT services. Despite margin pressures, the company continues to achieve an EBITDA + Growth rate of 45%, exceeding market averages. On Monday, the company’s stock closed at Rs. 571.72, down 1.44%.