Textile Maker Interloop Posts Highest-Ever Quarterly Profit of Rs. 9.6 Billion

Textile maker Interloop Limited (ILP) has posted its highest-ever quarterly profit of Rs. 9.583 billion in the quarter ended March 31, 2023 (3QFY23). According to the financial results released on Tuesday, the company’s profit after tax (PAT) for the quarter was a staggering 320 percent higher than the PAT of Rs. 2.279 billion posted in the same quarter of the previous fiscal year (2QFY22). The company reported earnings per share (EPS) of Rs. 10.26 in the quarter under review compared to EPS of Rs. 2.44 in the same quarter of the previous fiscal year. The company’s net sales during the quarter under review clocked in at Rs. 31.206 billion, up 47 percent compared to the same quarter of the previous year due to exchange gain and optimal capacity utilization, according to Arif Habib Ltd. The cost of sales in the quarter was up 6 percent over the previous year. The company’s gross profit stood at Rs. 14.520 billion in 3QFY23, up 162 percent compared to 3QFY22.  The gross margins of the company came at 46.5 percent in 3QFY23 compared to gross margins of 26.1 percent in 3QFY22. The growth in gross margins comes on the back of decline in yam prices. The effective taxation came in at 3 percent in 3QFY23 compared to the effective taxation of 8.1 percent in 3QFY22. The company’s profit of Rs. 14.168 billion for the first three quarters of the current fiscal year (9MFY23) was also its highest ever, up 103 percent from the profit posted for the same period in the last fiscal year. Interloop’s scrip at the bourse was closed at Rs. 49.02. up by Rs. 0.98 or 2.04 percent, with a turnover of 1.06 million shares on Tuesday. Interloop is a vertically integrated multi-category full family clothing company, manufacturing hosiery, denim, knitted apparel and seamless active wear, for top international brands and retailers, besides producing yarns for a range of textile customers.