Despite higher sales, Interloop Limited (ILP), one of Pakistan’s largest textile exporters, saw its profit reduce massively by over 70% to Rs1.15 billion during the quarter ended December 31, 2024.
The company registered a consolidated profit of Rs3.81 billion in the same period last year (SPLY), according to a notice sent to the Pakistan Stock Exchange (PSX) on Wednesday.
Earnings per share (EPS) decreased to Re0.82 in the period under review compared to Rs2.72 in SPLY.
The decline in profit comes on the back of the high cost of sales and operating expenses incurred during the quarter.
During the period, the textile giant’s net sales surged by nearly 26% to Rs44.6 billion during 2QFY25, compared to Rs35.45 billion recorded in the prior year.
Despite higher sales, textile giant Interloop’s profit down 94% in 1QFY25
Despite higher sales, Interloop saw its gross profit lowered to Rs8.95 billion in 2QFY25, down by over 9%. Resultantly, the company’s profit margin decreased to 20.1%, as compared to 27.9% in SPLY owing to higher costs.
On the other hand, the company’s operating expenses rose nearly 21% year-on-year, to Rs4.88 billion in 2QFY25.
The textile exporter’s profit from operations lowered to Rs4.35 billion, as compared to Rs6.92 billion in SPPLY, registering a decline of over 37%.
The company saw its cost of finance inched up to Rs2.7 billion in 2QFY25, an increase of 4%.
Consequently, profit before tax clocked in at Rs1.65 billion in 2QFY25, as compared to Rs4.32 billion in SPLY, a decrease of 62%.
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.
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