Interloop Limited (ILP) has announced unconsolidated earnings of Rs. 4.1 billion (EPS of Rs. 2.95) for 3QFY24. This takes 9MFY24 earnings to Rs. 13.2 billion (EPS of Rs. 9.39) down 7 percent year-on-year (YoY) as compared to 9MFY23 profit of Rs. 14.2 billion (EPS of Rs. 10.11).
In its result review, Topline Securities said that the earnings came higher than expectations for 3QFY24 due to higher than expected gross margins. Gross margins for 3QFY24 stood at 29.1 percent against 27.6 percent in 2QFY24. Gross margins were expected to decline due to the capitalization of the apparel plant project along with PKR appreciation, which was expected to impact margins negatively.
Net sales for 3QFY24 rose by 25 percent YoY and 11 percent QoQ to Rs. 39 billion, higher than expectations. The commencement of operations of the Apparel Plant in mid-November contributed to this growth, enabling full operational capacity and driving the increase in sales.
Distribution expenses rose by 44 percent YoY and 14 percent QoQ to Rs. 1.3 billion. Administrative expenses were up 47 percent YoY and 2 percent QoQ to Rs. 2.3 billion. Other income went down by 6 percent YoY and 58 percent QoQ.
Finance costs of the company increased by 95 percent YoY but remained flat on a QoQ basis to Rs 2.6 billion.
The effective tax rate stood at 12 percent in 3QFY24 (1.40 percent of turnover) compared to 3 percent in 3QFY23 (0.94 percent of turnover) and 15 percent in 2QFY24 (1.44 percent of turnover).
