Interloop’s Q3 earnings dive to Rs222m, down 96% YoY

October 24, 2024 (MLN): Interloop Limited (PSX: ILP) recorded a decrease of 96.3% YoY in its third-quarter earnings, with the company's after-tax profits plunging to Rs222.28 million [EPS: Rs0.16], compared to a profit of Rs6.04bn [EPS: Rs4.31] reported in the same period last year (SPLY).

The profit and loss account shows that the company’s revenue rose by 8.1% to Rs41.63 billion, compared to Rs38.5bn in Q3 CY23.

However, costs to sell spiked by 31.5%, which ultimately led to a 39.1% decline in gross profit, bringing it down to Rs7.76bn in Q3 CY24.

The gross margins worsened to 18.6% as compared to 33.1% in SPLY.

During the period under review, other income rose 111.7% to stand at Rs276.98m in Q3 CY24 as compared to Rs130.85m in SPLY.

However, with reduced gross profit and surging expenses, the company struggled this quarter.

ILP's administration expenses rose 11.6% YoY to Rs2.25bn, while distribution and selling expenses surged 33.5% YoY to Rs1.83bn.

The company’s finance cost also expanded by 29.2% and stood at Rs2.85bn as compared to Rs2.21bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs647.67m against the Rs509.89m paid in the corresponding period of last year, depicting an increase of 27%.

Amount in thousand except for EPS

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