America (21%), Pakistan (13%), Europe (4%), and Asia Pacific (3%). The employee base grew to over 7,500 in CY24, with 82% comprising Pakistani nationals.
Management reported improved employee retention and expects further improvement. Wage increments remained market competitive. In CY24, revenue concentration stood at: top 1% of clients (13%), top 5% (27%), top 10% (36%), and top 20% (49%). The company serves over 250 active clients generating revenues above USD 100,000.
Management is targeting top-tier clients with revenue exceeding USD 10 million. Revenue was 94% in foreign currency and 6% in local currency, while costs were 57% in local currency and 43% in foreign currency. Exports accounted for 90% of total revenue, with domestic revenue expected to contribute around 10%. Vertical-wise revenue distribution: BFSI (30%), Telco (23%), Technology (12%), Retail & CPG (11%), and other sectors (12%).
Management aims to deepen presence in existing markets, particularly KSA and GCC, rather than expand into China, Japan, and Hong Kong, citing language barriers. The company holds a 30% cost advantage over Indian peers. US tariffs do not directly impact its IT exports, but offer costbased opportunities. The company is not investing in data center infrastructure but will continue providing associated services. The company is also pursuing further acquisitions.
In 4QCY24, margins fell to 24.4% due to a one-off trading transaction. The effective tax rate remained at 10% in CY24 and is expected to stay stable in CY25. Company expects topline growth in USD terms at 26%, supported by strong backlog and bookings in CY25.
Management does not expect the normal tax regime to apply to IT services exports. The company is investing in AI capabilities and training developers to meet growing demand, particularly in KSA and GCC, with a focus on productivity and cost efficiency. Management expects gradual margin improvement, targeting a 4–5 percentage point increase, with gross margins reaching 27–28% in CY25. Financial planning assumes a stable exchange rate, with continued focus on optimizing bench, maintaining fixed costs, improving productivity, rationalizing expenses, and controlling wage growth.
Important Disclosures
Disclaimer: This report has been prepared by Chase Securities Pakistan (Private) Limited and is provided for information purposes only. Under no circumstances, this is to be used or considered as an offer to sell or solicitation or any offer to buy. While reasonable care has been taken to ensure that the information contained in this report is not untrue or misleading at the time of its publication, Chase Securities makes no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time, Chase Securities and/or any of its officers or directors may, as permitted by applicable laws, have a position, or otherwise be interested in any transaction, in any securities directly or indirectly subject of this report Chase Securities as a firm may have business relationships, including investment banking relationships with the companies referred to in this report This report is provided only for the information of professional advisers who are expected to make their own investment decisions without undue reliance on this report and Chase Securities accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents At the same time, it should be noted that investments in capital markets are also subject to market risks This report may not be reproduced, distributed or published by any recipient for any purpose.
