Systems Limited (SYS): Where the Growth is Coming From?

Pakistan’s biggest IT company, Systems Limited (SYS), is growing fast, not just across countries, but also across different industries it serves. Let’s break down the key business areas that are fueling SYS’s success and what makes them so important.

Banking & financial services (BFSI): the powerhouse

The Banking, Financial Services, and Insurance (BFSI) sector is the #1 revenue earner for SYS. In 2024, it brought in 30% of the company’s total revenue, growing a strong 34% year-over-year.

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But here’s what makes SYS extra special in this area:

• It has a special partnership with global banking software company Temenos.
• SYS has first rights to implement Temenos’s Core Model Bank (CMB) in MENA and Asia-Pacific.
• What does that mean? If a bank in these regions wants to use CMB software, SYS gets the first call.

This gives SYS a strong edge in digital banking transformation, especially in high-growth markets like Saudi Arabia and Egypt.

Retail, telecom, & tech: where the profits are?

While BFSI leads in revenue, other sectors are pulling their weight too, and even bringing in higher profit margins.

Retail & consumer goods

• Revenue grew 34% in 2024 (same as BFSI).
• SYS has long-term clients in North America and Europe.
• These clients pay for recurring services, like tech support and software updates, which means steady income.
• It’s also SYS’s most profitable segment, with a 34% gross margin.

Telecom

• Strong partnerships with major telecom operators.
• Working together to build new digital tools.
• Brought in 23% of total revenue, with 31% growth in 2024.
• Gross margin: a solid 26%.

Technology

• This includes SYS’s tech services and outsourced work from big global companies.
• Growth was slower at 9%, but it still made money thanks to better backend processes.
• Gross margin: 28%, showing good cost control.

What does it all mean?

SYS isn’t dependent on just one area to grow. It has:

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• A stronghold in banking thanks to exclusive rights with Temenos.
• Profitable segments like retail and telecom that offer stable, high-margin work.
• A well-diversified business model, which makes it more resilient to ups and downs in the market.

In short, SYS is not only growing fast, it’s growing smart.

Source: JS Global

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →