Textile giant Interloop’s profit surges 115% to Rs10bn in 1HFY24

Interloop Limited (ILP), one of Pakistan’s largest textile exporters, saw its profit jump by 115% to Rs9.86 billion during the half year ended December 31.

The company registered a consolidated profit of Rs4.59 billion in the same period last year (SPLY), according to a notice sent to the Pakistan Stock Exchange (PSX) on Tuesday.

Earnings per share (EPS) increased to Rs7.03 in the period under review compared to Rs3.27 in SPLY.

The company also announced an interim cash dividend of Rs2 per share i.e. 20% for the year ending June 30, 2024.

The textile giant’s net sales surged by nearly 40% to Rs73.98 billion during 1HFY24, compared to Rs52.92 billion recorded in the prior year.

Interloop saw its gross profit surging to Rs22.63 billion in 1HFY24, up 66%. Consequently, the company’s profit margin increased to 30.6%, as compared to 25.8% in SPLY.

On the other hand, the company’s operating expenses rose over 40% year-on-year, to Rs8.14 billion in 1HFY24.

Interloop’s profit surges to Rs20.17bn in FY23

The textile exporter’s ‘other income’ showed exponential growth of 2,115% YoY, hitting Rs332.32 million in 1HFY24, compared to just Rs15 million in SPLY.

Its cost of finance ballooned to Rs4.8 billion in 1HFY24, an increase of 85%. The increase comes as interest rates increased significantly during the year.

Consequently, profit before tax clocked in at Rs10.88 billion in 1HFY24, as compared to Rs5.26 billion in SPLY, an increase of 107%.

Established in 1992, Interloop was listed on the country’s stock exchange in 2019.

The company is a vertically-integrated, multi-category company that manufactures hosiery, denim, knitted apparel and activewear. In addition, it produces yarn for textile customers. It is also one of the largest exporting firms in Pakistan and among the largest listed companies on PSX.

All of its plants are located in the province of Punjab.

Last year in December, ILP acquired Top Circle Hosiery Mills Co., Inc., USA.