NETSOL Technologies Limited, an American software company, has announced its financial results for FY 2020.
For the Pakistani chapter of the company, NETSOL Technologies Pakistan, the fiscal year 2019-2020 (FY20) was not very profitable as the company reported a consolidated profit of Rs. 44.13 million, down by 66% as compared with a profit of Rs. 1.29 billion recorded last year. The current decrease is attributed to due to lower revenues and dip in other income.
NETSOL recorded a 12.65% decrease in its sales during FY20. It was able to achieve sales of Rs. 4.70 billion as compared to Rs. 5.38 billion last year. The generation of revenue for the current year was associated with services and maintenance revenue streams mainly in the lease-finance market of the Asia-Pacific region and exports of software licenses.
Another reason for the decline in sales was due to a subscription-based pricing model, which NETSOL recently moved to increase its target market for sales growth. The cost of sales of the company came in at Rs. 3.14 billion, decreasing by 5.15% as compared to Rs. 3.31 billion recorded in the same period last year.
On a year-over-year comparison, this year’s administrative expenses for the company increased to Rs. 768 million from Rs. 748 million, whereas, selling and promotion expenses saw a fall of 32% to Rs. 455 million as compared to Rs. 669 million.
However, other income saw a drastic fall of 75.6% to Rs. 254 million as compared to Rs. 1.04 billion. The finance cost also saw an increase of 22% to Rs. 48.51 million as compared to Rs. 39.81 million.
Other operating expenses decreased to Rs. 275 million as compared to Rs. 288 million posted last year. It also reported a share of loss of associate of Rs. 66.78 million. Earnings per share decreased to Rs. 0.04 from Rs. 14.13 in the year.
At the time of filing this report, NETSOL’s shares at the bourse were trading at Rs. 62.22, down by Rs. 3.82 or 5.78% with a turnover of 1.86 million shares on Thursday.