Interloop Limited, the largest hosiery producer in Pakistan, has announced its financial results for the 3rd quarter that ended on 31st March 2021.
The company reported an increase of 168.25 percent in its profits during the third quarter. Interloop reported a profit of Rs. 1.69 billion in 3QFY21 as compared to a profit of Rs. 631 million in the corresponding year.
This took the nine months profit to Rs. 4.60 billion, up by 113 percent compared to Rs. 2.16 billion recorded in the same period last year.
The result came in higher than the industry expectations due to higher gross margins.
During the period, the sales of the company grew by 16.6 percent to Rs. 12.50 billion as compared to Rs. 10.72 billion in the same period last year due to the increase in hosiery and denim sales.
According to Topline Securities, the gross margins clocked in at 30 percent, with a majority of the deviation coming from higher than expected revenues.
The selling and distribution costs increased by 13 percent year-on-year to Rs. 667 million due to the increase in salaries and salary commission costs. The administration expenses increased by 17 percent year-on-year to Rs. 731 million as compared to Rs. 626 million due to the increase in hiring new people for the expansion of the projects that hosiery plant V and Denim phase-II.
Earnings per share of the company increased to Rs. 1.95 from Rs. 0.72.
At the time of filing this report, Interloop’s scrip at the bourse was trading at Rs. 65.50, up by Rs. 1.17 or 1.82 percent, with a turnover of 397,000 shares on Tuesday.