Interloop registers sharp 78% decline in net profits during FY20

September 17, 2020 (MLN): Interloop Limited has announced its financial results for the year ended June 30, 2020. According to the results, the company has posted its net profits of Rs 1.125 billion, showing a decline of 78% YoY compared to its net profits of Rs 5.06 billion of the same period last year. 

This has translated into earning per share which clocked in at Rs 1.291 against Rs 6.498 in the aforementioned period.

Other than this, the Board of Directors announced a final cash dividend for the year ended June 30, 2020, of Rs 1 per share i.e. 10%.

As per the financial statement issued by the company to PSX, the topline went down by 2% YoY to Rs 36 billion but more than a proportionate increase in the cost of sales made the gross profits decline by 36% YoY. Therefore, the gross margin shrunk from 31.64% to 20.58%.

On the expense side,  the company witnessed an increase in its major expense heads as administrative expenses went up by 14.45% YoY while distribution and other operating expenses saw a decline of 26% YoY and 28% YoY respectively.

More notably, the share of loss from associated companies increased by 2 times YoY to stand at Rs 119 million. However, other income surged by 6.85 times YoY owing to an increase in income from financial assets.

Meanwhile, the finance cost rose by 20% YoY to clock in at Rs 1.2 billion due to a rise in borrowing to purchase a new plant and machinery.

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