A bird’s eye review of Interloop: 1HFY24

Interloop Limited (ILP) announced the financial result for 1HFY24 today, where the company posted a PAT of PKR 9,857mn (EPS: PKR 7.03) against PKR 4,585mn (EPS: PKR 3.27) in 1HFY23, up by 115% YoY. Meanwhile, the consolidated earnings in 2QFY24 clocked in at PKR 3,814mn (EPS: PKR 2.72), in contrast to a loss after tax of PKR 376mn (LPS: PKR 0.27) in 2QFY23. In addition to the result, the company announced an interim cash dividend of PKR 2.00/share (PKR 2.00/share in 1HFY24). 

Result Highlights       

·        Net sales during 1HFY24 clocked in at PKR 73,984mn, climbing up by 40% YoY amid higher hosiery pricing and volumetric growth. On quarterly basis, the topline ascended by 58% YoY, settling at PKR 35,484mn on account of PKR depreciation against the greenback.

·        Gross margins for 1HFY24 arrived at 30.6% compared to 25.8% in SPLY, owed to higher hosiery and yarn prices in tandem with the decline in cotton prices. Whereas gross margins in 2QFY24 reached 27.9% (up by 1202bps YoY), which is attributable to the absence of export rebate during the same period.

·        Other income in 1HFY24 surged by 81x YoY to settle at PKR 1,210mn. Whereas, in 2QFY24 other income settled at 1,079mn (up 28x YoY) mainly due to surplus on the acquisition of subsidiaries of PKR 857mn.

·        Finance costs in arrive 2QFY24 settled at PKR 2,595mn vis-à-vis PKR 1,414mn in SPLY, an increase of 84% YoY due to higher interest charged on elevated short-term borrowings

·        The company booked effective taxation at 11.8% in 2QFY24.

Courtesy – AHL Research

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