Karachi: Interloop Limited, a prominent Pakistani textile company, reported a substantial increase in net sales for the fiscal year 2024, reaching PKR 156 billion, up from PKR 119 billion in the previous year. However, the company experienced a decline in net profit, which fell to PKR 16 billion from PKR 20 billion in the same period. This financial performance was disclosed in the company's annual report released on October 20, 2023.

According to the detailed financials, Interloop's gross profit also saw an increase, rising to PKR 44 billion from PKR 40 billion in FY 2023. Despite the growth in sales and gross profit, the net profit margin decreased to 10.1 percent from 16.9 percent in the prior year, reflecting challenges in cost management and profitability.

The company declared a cash dividend of PKR 4.5 per share, down from PKR 5.0 per share declared last year. Notably, there was no bonus issue for FY 2024, compared to a 50 percent bonus issue per 100 shares in FY 2023.

Interloop's earnings per share (EPS) dropped to PKR 11.3 from PKR 14.4 in the previous year, while the interest coverage ratio weakened, standing at 2.9 times compared to 5.2 times the prior year. The decline in these indicators points to increased financial pressure and interest liabilities.

According to information available from the Pakistan Stock Exchange (PSX), the company's total assets grew significantly, reaching PKR 152 billion from PKR 125 billion in FY 2023. Shareholders' equity also increased, totaling PKR 54 billion, up from PKR 44 billion last year, indicating a stronger equity base.

Interloop Limited has several capital expenditure projects in the pipeline, including Plant 6 with a budget of USD 58 million, expected to be completed in the first quarter of FY 2026, adding a capacity of 1,584 knitting machines. Other projects include a denim expansion costing USD 18.8 million, a yarn dyeing expansion with a budget of USD 13.2 million, and a renewable energy project slated for completion in the third quarter of FY 2025 with an investment of USD 2.1 million to add 4.6 MW of solar energy capacity.

These ongoing projects underline Interloop's commitment to enhancing its production capabilities and sustainability initiatives, positioning the company for future growth in the textile industry.