Karachi: A Pakistan-based company reported a significant increase in its revenue for the fiscal year 2024, marking a 20% rise compared to the previous year. The company's revenue reached 38.53 billion Pakistani Rupees, up from 32.04 billion Rupees in fiscal year 2023. However, despite this growth, the company's profits and earnings per share have seen a downward trend.

The company experienced a decrease in several key areas of its financial performance. Gross profit declined by 2%, reaching 9.56 billion Rupees. Operating profit and profit before taxation fell by 21% and 27%, respectively. Profit after taxation saw a 29% decrease, amounting to 6.12 billion Rupees, down from 8.56 billion Rupees in the previous fiscal year. This decline in profits was reflected in the earnings per share, both basic and diluted, which each fell by 29% to 20.94 Rupees and 20.80 Rupees, respectively.

According to information available from the Pakistan Stock Exchange (PSX), the company's growth trajectory in revenue has been consistent over the past few years, with a compound annual growth rate (CAGR) of 50% from 2020 to 2024. This growth was driven by the company's expansion across various geographical regions and market segments.

The company's revenue composition highlights its strong presence in export markets, accounting for approximately 87% of total sales. The Middle East and Africa (MEA) region led the growth, contributing significantly to the revenue increase. Subsidiaries in the UAE and Arabia were particularly instrumental, with Qatar poised to become a substantial business in the near future.

In terms of market segments, the company operates across various categories including Technology, Retail and Consumer Packaged Goods (CPG), and Telecommunications. The Technology segment, which includes technology-related solutions, products, and subcontracted work, continues to perform well in North America and Europe, with gross margins of 39% and operating margins of 28%.

Despite the decline in profits, the company remains optimistic about future growth opportunities. The company aims to further increase its export component and anticipates modest growth in the North American segment, where margins currently stand at 33.2% for gross profit and 21.1% for operating profit.

As the company navigates the challenges of declining profits amidst rising revenue, its strategic focus on export markets and diverse geographical presence are expected to play a crucial role in its future performance.