ILP: PAT clocks in at Rs4.59bn in 1HFY23

February 14, 2023 (MLN): Interloop Limited (PSX: ILP) has recorded profit-after-tax (PAT) of Rs4.59 billion (EPS: Rs4.91) for 1HFY23, down by 2.81% YoY from Rs4.7bn (EPS: Rs5.05) earned in the corresponding period of the last fiscal year, the company’s filing on PSX revealed today.

Going by the financial statement, the net sales of the company increased by around 34.50% YoY to Rs52.92bn. However, a proportionate increase in the cost of sales by 35.82% YoY offset the impact of higher revenue. As a result, the gross margins squeezed by 71 basis points to 25.83% in 1HFY23.

On the cost front, the company’s major expense head i.e., administrative expenses ballooned by 55% YoY to Rs3.02bn during the said period while distribution cost went up by 19% YoY.

Among other line items, the other operating expenses of the company decreased by 12.3% YoY to Rs854mn. Meanwhile, other income plunged by 40.17% YoY to Rs15mn.

Notably, the finance costs of the company surged by 3x YoY to Rs2.63bn in 1HFY23 on account of higher reliance on borrowings to meet CAPEX requirements. Further, an increase in the policy rate by the central bank is also a reason behind this increase in financial costs.

On the tax front, the company’s effective tax rate increased to 12.77% in the review period.

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