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Systems Limited (SYS) has partnered with tech giant Microsoft to expand its artificial intelligence (AI) services and strengthen global presence amid increasing competition in the tech industry, reports WealthPK.

This partnership combines the strengths of both the companies, allowing SYS to deliver innovative solutions to the customers according to the changing priorities of enterprises in different industries. This partnership plays a vital role for the company to expand its presence in the international markets, particularly in North America and Europe, where the demand for advanced technology is surging. This collaboration will provide additional resources and networks for SYS to expand its client base and improve its services. According to the financial results on the Pakistan Stock Exchange (PSX), despite facing challenges like inflation and currency fluctuations, SYS showed resilience in its financial performance during the 9MCY24 period, reporting an increase of 29% in consolidated revenue.

The company's gross and operating profits grew by 10% and 14%, respectively. However, the net profit dipped by 24% due to the exchange losses and higher taxes. Furthermore, the company's standalone revenue increased by 21% from Rs23.07 billion to Rs27.92 billion in the nine months of the ongoing calendar year (2024). However, the gross profit decreased by 1% to Rs7.13 billion and operating profit by 10% to Rs4.32 billion in 9MCY24, due to the rising inflationary costs and lower exchange rates. Thus, the company is investing in growth-potential markets, with 90% of its business conducted in USD to mitigate the currency risk. Furthermore, the company is mitigating pressure on margins due to the rising inflation through effective cost management, efficiency improvements and renegotiation of renewal rates for older contracts.

Therefore, the company aims to generate new opportunities and enhance services by expanding its partnership with the tech giant internationally. Furthermore, the company is focusing on AI as a service to meet the increasing demand of various industries for AI-based solutions, such as the development of specific industries such as pharmaceuticals, etc. Thus, the company is expanding its geographic presence, with steady performance in Europe and positive momentum in the US and the Middle East as a key driver. Apart from that, SYS is also focusing on closing down its unprofitable domestic contracts in Pakistan. Therefore, the future looks promising for SYS and its clients, with the company leveraging advanced technology to meet specific needs and foster sustainable growth. This approach reflects a shared vision for innovation and long-term success in the tech landscape in Pakistan.

Credit: INP-WealthPk