Interloop turns profitable, announces Rs2 per share dividend

February 20, 2024 (MLN): Interloop Limited (PSX: ILP) made a significant turnaround in the second quarter of fiscal year 2024, earning a profit after tax of Rs3.81 billion [EPS: Rs2.72] compared to a loss of Rs375.91m [LPS: Rs0.27] in the same period last year (SPLY).

Along with the results, the company announced an interim cash dividend for the year ending June 30, 2024 at Rs2 per share i.e. 20%.

The gross margins of the company improved significantly to 27.86% as compared to 15.84% in SPLY.

Going by the results, the company's top line grew by 58.00% YoY to Rs35.48bn as compared to Rs22.46bn in SPLY.

The cost of sales also rose by 35.43% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 2.78x YoY to Rs9.88bn in 2QFY24.

Moreover, during the review period, other income surged by 5.7x YoY to stand at Rs221.49m in 2QFY24 as compared to Rs38.86m in SPLY.

On the expense side, the company observed an increase in distribution costs by 53.91% YoY to clock in at Rs1.19bn. While other operating expneses surged to Rs478.61m respectively during the review period as against just Rs1.4m in same quarter of last year.

The company’s finance costs rose by 83.52% YoY and stood at Rs2.59bn as compared to Rs1.41bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs508.51m against the Rs328.04m paid in the corresponding period of last year, depicting a rise of 55.01% YoY.

Amount in thousand except for EPS

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