Wednesday, October 30, 2013 12:22:31 AM
More good news for NetSol’s shareholders! After scoring its all-time high revenues and net profits in FY13, NetSol Technologies Limited has had an impressive start to its new financial year. Growing top line and booming bottom line are reported by the Company for the first quarter ending September.
Overseas business is the Company’s mainstay, for revenues from foreign sales have consistently made up for over 90 percent of total revenues generated in last four financial years. Past data shows that the revenue growth for NetSol picks up in later quarters of a given financial year, as the pipeline of foreign software and IT services deals built in earlier months starts maturing as the year passes by.
In that context, the 38.4 percent year on year 1Q FY14 revenue growth is a healthy sign, which points towards aggressive marketing and promotion efforts in the Company’s overseas markets in the Asia-Pacific region. The top line growth is expected to have come about due to good performance in the major business segments of IT services and software licensing.
This strong revenue growth has helped the quarterly financial results to remain in god shape, despite a 36 percent hike in cost of revenue. A bit of cost efficiency is visible though, as these costs exhausted 104bps less of revenues (59.3 percent) compared to same period of last year. That helped the software Company post a slightly improved gross margin, 40.7 percent, over last year.
Similarly, though both heads of selling expenses and administrative expenses increased year on year by 50.5 percent and 32.9 percent, they collectively consumed 34 percent of revenues in 1Q FY14, which is 44bps less than the corresponding period of last year.
NetSol’s non-operating performance also played a major part in posting stellar first quarter results. Its ‘other income’-–which comprises of foreign currency gains, dividend income and returns on bank deposits-–increased by 1.8 times over last year to reach Rs111.8 million. This significant gain in non-core income seems to have come from greater rupee depreciation during the period under review.
NetSol closed its 1st quarter with net profits of Rs140.15 million, showing a 151.2 percent growth over 1Q FY13. Revenue growth is expected to intensify in subsequent quarters, and if cost control measures are stepped up, NetSol may exceed its FY13 performance this year. However, top line expansion is reliant on how the Company sells its flagship product, NetSol Financial Suite, to prospective clients overseas.
Recent NTWK News
- Form 8-K - Current report • Edgar (US Regulatory) • 09/12/2024 05:15:19 PM
- NETSOL Signs Expansion Agreement with Major Automaker Increasing Total Contract Value to Over $30 Million • GlobeNewswire Inc. • 09/10/2024 12:30:00 PM
- Form 5 - Annual statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/02/2024 05:42:02 PM
- Charles & Dean Finance Subscribe to Appex Now Products Flex and Dock • GlobeNewswire Inc. • 08/01/2024 12:30:00 PM
- NETSOL signs $16 Million Agreement with Major Automaker to Revolutionize Digital Car Buying and Leasing Experience in the United States • GlobeNewswire Inc. • 07/16/2024 12:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/11/2024 06:50:45 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/14/2024 10:06:11 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/20/2024 07:00:22 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/20/2024 04:30:40 PM
- NETSOL Technologies Reports 14% Revenue Growth and EPS of $0.03 in Fiscal Third Quarter 2024 • GlobeNewswire Inc. • 05/20/2024 12:30:00 PM
- Form DEFR14A - Revised definitive proxy soliciting materials • Edgar (US Regulatory) • 05/10/2024 03:05:40 PM
- Form DEFR14A - Revised definitive proxy soliciting materials • Edgar (US Regulatory) • 05/10/2024 10:05:11 AM
- NETSOL Technologies Reschedules Fiscal Third Quarter 2024 Conference Call • GlobeNewswire Inc. • 05/08/2024 12:30:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/06/2024 04:40:15 PM
- NETSOL Technologies Sets Fiscal Third Quarter 2024 Conference Call for Thursday, May 9 at 9:00 am ET • GlobeNewswire Inc. • 04/25/2024 12:38:36 PM
- Leading German Auto Finance Company Goes Live with Full NFS Ascent Suite to Support Operations in South Korea • GlobeNewswire Inc. • 04/09/2024 12:30:00 PM
- NETSOL Technologies Achieves AWS Foundational Technical Review Badges for Five Products • GlobeNewswire Inc. • 04/02/2024 12:30:00 PM
- Close Brothers Goes Live with NETSOL's Cloud-Based Calculation Engine Flex • GlobeNewswire Inc. • 03/26/2024 12:30:00 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM