lahore: Interloop Limited, a prominent player in Pakistan's textile industry, announced its financial results for the nine months ending March 31, 2025. The company reported a significant 11.1% increase in sales, reaching PKR 125,408 million. However, profitability did not mirror this growth, with gross profit contracting by 27.3% to PKR 24,593 million. The net profit declined sharply by 79.4% to PKR 2,710 million, reflecting the impact of elevated input costs and other financial challenges.
The Pakistani economy is showing signs of resilience, with a GDP growth of 1.73% in the second quarter of FY2025. This growth is supported by the agriculture and services sectors, which saw increases of 1.10% and 2.57%, respectively. The International Monetary Fund (IMF) projects a 3.2% real GDP growth for FY2025, though the textile sector faces challenges due to a 33% reduction in cotton output. Effective management of external accounts has led to a current account surplus of USD 1.86 billion and a reduction in inflation to 5.4% year-on-year.
According to information available from the Pakistan Stock Exchange (PSX), the trade deficit remained steady at USD 17.9 billion, with exports and imports rising by 7.7% and 6.3%, respectively. The textile and apparel sector showed a robust recovery, with exports increasing by 9.4% year-on-year to USD 13.6 billion. However, recent U.S. trade policy changes pose a risk to this positive trend.
Interloop's financial performance revealed a divergence in trends, with operational profits decreasing by 45.5% to PKR 12,055 million. The company's earnings per share fell by 79.4% to PKR 1.9 per share. Despite these challenges, the third quarter of FY2025 showed some improvement, with a 16.2% increase in net profit to PKR 1,337 million.
The group's consolidated revenue reached PKR 130,541 million, marking a 14.3% increase from the previous year. However, the net profit saw a steep decline of 78.4%, dropping to PKR 3,028 million. The company anticipates a dynamic operating environment in FY2026, with potential benefits from softening global commodity prices and further interest rate cuts in Pakistan.
Interloop is advancing its sustainability and corporate social responsibility initiatives, including partnerships for recycling textile waste and educational programs. The company received recognition at the 2024 Just Style Excellence Awards for its efforts in business expansion and environmental innovation. Interloop's commitment to education and community well-being is underscored by scholarships and construction of new schools.
The Board of Directors expressed appreciation to all stakeholders and acknowledged the contributions of the management team and employees, emphasizing their role in the company's continued growth and success.