NetSol Technologies Bounces Back With Impressive Profit in 2QFY24
Karobar
NetSol Technologies Limited (PSX: NETSOL) achieved a remarkable turnaround in the second quarter of fiscal year 2024, with its profit after tax reaching Rs534.12 million [EPS: Rs6.08], a significant improvement from the loss of Rs162.51m [LPS: Rs1.85] incurred during the same period last year (SPLY).
Going by the results, the company's top line went up by 47.75% YoY to Rs2.49 billion as compared to Rs1.68bn in SPLY.
Moreover, the cost of sales fell by 4.94% YoY, improving the gross profit by a substantial 3.48x YoY to Rs1.22bn in 2QFY24.
The gross margins improved to 49.08% as compared to 20.85% in SPLY
During the period under review, other income deflated by 34.73% YoY to stand at Rs128.26m in 2QFY24 as compared to Rs196.49m in SPLY.
On the expense side, the company observed an increase in selling and promotion expenses by 10.16% YoY and other expenses by 10.94% YoY to clock in at Rs186.49m and Rs124.17m respectively during the review period.
The company’s finance costs soared by 77.09% YoY and stood at Rs79.64m as compared to Rs44.97m in 2QFY24, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs65.42m against the Rs46.93m paid in the corresponding period of last year, depicting a rise of 39.40% YoY.
