April 26, 2022 (MLN): Interloop Limited (PSX: ILP) has recorded profit-after-tax (PAT) of Rs6.99 billion (EPS: Rs7.79) for 9MFY22, registering a growth of 52%, from Rs4.60bn (EPS: Rs5.12) earned in the corresponding period of the last fiscal year, the company’s filing on PSX revealed today.
This increase in profitability was a result of higher revenue due to increased sales volume.
Going by the financial statement, the net sales of the company increased by around 56% YoY to Rs60.61bn, mainly due to the addition of new machineries in its hosiery division fostering volumetric sales of the company. In addition, the company also managed to tap fresh opportunities. However, a proportionate increase in the cost of sales by 56% offset the impact of higher revenue. As a result, the gross margins remained stable at 26% during 9MFY22.
On the cost front, the company’s major expense head i.e., administrative expenses ballooned by 58% YoY to Rs3.19bn during the said period while distribution cost went up by 30% YoY due to excess export orders and the addition of new machinery in knitwear and denim division.
Among other line items, the other operating expenses of the company witnessed a more than two-fold increase to Rs1.28bn. Meanwhile, other income plunged by 30.5% to Rs45.7mn.
Notably, the finance costs of the company witnessed an upsurge of 94.6% YoY to Rs1.59bn in 9MFY22 on account of higher reliance on borrowings to meet CAPEX requirements. Further, an increase in the policy rate by the central bank might be one of the reasons behind this increase in financial costs.
On the tax front, the company’s effective tax rate remained flat at 7% during the period under review.
|
Financial Results for the nine months ended March 31, 2022 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Mar-22 |
Mar-21 |
% Change |
|
Net Sales |
60,605,695 |
38,769,191 |
56.32% |
|
Cost of Sales |
(44,609,940) |
(28,559,455) |
56.20% |
|
Gross profit |
15,995,755 |
10,209,736 |
56.67% |
|
Distribution Cost |
(2,434,809) |
(1,870,378) |
30.18% |
|
Administrative expenses |
(3,188,297) |
(2,018,643) |
57.94% |
|
Other operating expenses |
(1,283,887) |
(621,638) |
106.53% |
|
Other income |
45,734 |
65,829 |
-30.53% |
|
Profit from operations |
9,134,496 |
5,764,906 |
58.45% |
|
Finance Cost |
(1,590,474) |
(817,149) |
94.64% |
|
Profit before Taxation |
7,544,022 |
4,947,757 |
52.47% |
|
Taxation |
(547,377) |
(346,431) |
58.00% |
|
Profit after taxation |
6,996,645 |
4,601,326 |
52.06% |
|
Earnings per share – basic and diluted (rupees) |
7.79 |
5.12 |
52.15% |
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