Despite higher sales, Interloop Limited (ILP), one of Pakistan’s largest textile exporters, saw its profit reduce massively by over 94% to Rs334.48 million during the quarter ended September 30, 2024.

The company registered a consolidated profit of Rs6.04 billion in the same period last year (SPLY), according to a notice sent to the Pakistan Stock Exchange (PSX) on Thursday.

Earnings per share (EPS) decreased to Re0.24 in the period under review compared to Rs4.31 in SPLY.

The decline in profit comes on the back of high cost of sales and operating expenses incurred during the quarter.

Despite higher sales, textile giant Interloop’s profit down 18% in FY24

During the period, the textile giant’s net sales surged by over 11% to Rs42.75 billion during 1QFY25, compared to Rs38.5 billion recorded in the prior year.

Despite higher sales, Interloop saw its gross profit decline to Rs8.14 billion in 1QFY25, down over 36%. Resultantly, the company’s profit margin decreased to 19%, as compared to 33.1% in SPLY owing to higher costs.

On the other hand, the company’s operating expenses rose nearly 8% year-on-year, to Rs4.3 billion in 1QFY25.

The textile exporter’s profit from operations lowered to Rs3.84 billion, as compared to Rs8.76 billion in SPPLY, registering a decline of over 56%.

Its cost of finance ballooned to Rs2.86 billion in 1QFY25, an increase of nearly 30%.

Consequently, profit before tax clocked in at Rs982.15 million in 1QFY25, as compared to Rs6.55 billion in SPLY, a decrease of 85%.

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.