NETSOL Technologies Pakistan Reports 79% Decline in H1 2024 Net Profit

NETSOL Technologies Pakistan has announced a significant 79% decrease in net profit for the first half of 2024, with after-tax earnings falling to Rs169.51 million. The company’s financial decline is the result of a 12.4% revenue reduction, which led sales to fall to Rs4.15 billion, significantly damaging the organization’s profitability.

The financial performance remained constrained due to rising operating costs. Selling and promotion expenses climbed by 14.38%, while administrative costs rose by 6.46%. The financial performance suffered major setbacks due to higher tax expenses and decreased gross margins, while other income climbed by 28.46%.

Earnings per share (EPS) decreased dramatically, falling to Rs1.93 from Rs9.17 the prior year. Higher tax charges of 52%, combined with lower finance costs, eliminated earnings improvements over this period.

This substantial decline underscores the challenges NETSOL Technologies Pakistan faces amid rising operational expenses and decreasing profitability.