OUR
MISSION
To be an agent of positive change for the stakeholders and community
by pursuing an ethical and sustainable business.
TABEL OF
CONTENTS
Company Information | 02 |
Directors' Review Report | 04 |
12 | |
Unconsolidated Condensed Interim Financial Statements | |
Unconsolidated Condensed Interim Statement of Financial Position | 14 |
Unconsolidated Condensed Interim Statement of Profit or Loss | 16 |
Unconsolidated Condensed Interim Statement of Comprehensive Income | 17 |
Unconsolidated Condensed Interim Statement of Changes in Equity | 18 |
Unconsolidated Condensed Interim Statement of Cash Flows | 19 |
Notes to the Unconsolidated Condensed Interim Financial Statements | 21 |
Consolidated Condensed Interim Financial Statements | |
Consolidated Condensed Interim Statement of Financial Position | 34 |
Consolidated Condensed Interim Statement of Profit or Loss | 36 |
Consolidated Condensed Interim Statement of Comprehensive Income | 37 |
Consolidated Condensed Interim Statement of Changes in Equity | 38 |
Consolidated Condensed Interim Statement of Cash Flows | 39 |
Notes to the Consolidated Condensed Interim Financial Statements | 41 |
1st Quarter Report
01
COMPANY INFORMATION
BOARD OF DIRECTORS | AUDIT COMMITTEE |
MUSADAQ ZULQARNAIN | TARIQ IQBAL KHAN |
Chairperson / Non-Executive Director | Chairperson |
NAVID FAZIL | ROMANA ABDULLAH |
Chief Executive Officer / Executive Director | Member |
MUHAMMAD MAQSOOD | JAHAN ZEB KHAN BANTH |
Executive Director / Group CFO | Member |
FARWA HASNAIN | HUMAN RESOURCE & |
Independent Director | REMUNERATION COMMITTEE |
FATIMA ASAD KHAN | FATIMA ASAD KHAN |
Independent Director | Chairperson |
NAVID FAZIL | |
ROMANA ABDULLAH | |
Member | |
Independent Director | |
FARWA HASNAIN | |
TARIQ IQBAL KHAN | |
Member | |
Independent Director | |
FARYAL SADIQ | |
FARYAL SADIQ | |
Member | |
Executive Director | |
JAHAN ZEB KHAN BANTH | |
JAHAN ZEB KHAN BANTH | |
Member | |
Non-Executive Director | |
CHIEF FINANCIAL OFFICER | NOMINATION COMMITTEE |
MUHAMMAD MAQSOOD | MUSADAQ ZULQARNAIN |
COMPANY SECRETARY | Chairperson |
NAVID FAZIL | |
RANA ALI RAZA | |
Member | |
HEAD OF INTERNAL AUDIT | MUHAMMAD MAQSOOD |
JAMSHAID IQBAL | Member |
CHIEF INFORMATION OFFICER | RISK MANAGEMENT |
MUHAMMAD YAQUB AHSAN BHATTI | COMMITTEE |
LEGAL ADVISOR | TARIQ IQBAL KHAN |
Chairperson | |
HAIDERMOTA & CO. | MUHAMMAD MAQSOOD |
AUDITORS | Member |
FATIMA ASAD KHAN | |
KRESTON HYDER BHIMJI & CO. | |
Member | |
Chartered Accountants | |
ROMANA ABDULLAH | |
Member |
02
ENVIRONMENTAL, SOCIAL & GOVERNANCE COMMITTEE
NAVID FAZIL
Chairperson
FARWA HASNAIN
Member
FARYAL SADIQ
Member
SHARE REGISTRAR / TRANSFER AGENT
CDC SHARE REGISTRAR SERVICES LIMITED
KARACHI OFFICE:
Share Registrar Department
CDC House, 99-B, Block B,
S.H.C.H.S, Main Shahra-e-Faisal,
Karachi - 74400
Tel: (92-21)111-111-500
Fax: (92-21) 34326031
LAHORE OFFICE:
Mezzanine Floor,
South Tower, LSE Plaza,
19-Khayaban-e-Aiwan-e-Iqbal, Lahore.
Tel: (92-42) - 36362061-66
BANKERS
Allied Bank Limited
Bank Alfalah Limited
Faysal Bank Limited
Habib Bank Limited
Habib Metropolitan Bank Limited
MCB Bank Limited
MCB Islamic Bank Limited
Meezan Bank Limited
National Bank of Pakistan
Standard Chartered Bank Pak Limited
The Bank of Punjab
United Bank Limited
E- COMMUNICATION
Website: www.interloop-pk.com
LinkedIn: Interloop Limited
Twitter: @InterloopLtd
Instagram: interlooplimited
YouTube: Interloop Limited
REGISTERED OFFICE
Interloop Limited Al-Sadiq Plaza, P-157,
Railway Road, Faisalabad, Pakistan Phone: (92-41) 2619724
Fax: (92-41) 2639400
Email : info@interloop.com.pk
Website: www. interloop-pk.com
CORPORATE OFFICE
INTERLOOP LIMITED
1 KM, Khurrianwala- Jaranwala Road,
Khurrianwala, Faisalabad, Pakistan
Phone: (92-41) 4360400
Fax: (92-41) 2428704
PLANT LOCATIONS
PLANT 1
1 KM Khurrianwala-Jaranwala Road,
Khurrianwala,
Faisalabad, Pakistan.
PLANT 2 & 4
7 KM Khurrianwala-Jaranwala Road,
Khurrianwala,
Faisalabad, Pakistan.
PLANT 3
8 KM, Manga-Raiwind Road, Distt. Kasur, Lahore, Pakistan.
PLANT 5
6 KM, By Pass Road, Khurrianwala, Faisalabad, Pakistan.
DENIM PLANT
8 KM, Manga-Raiwind Road, Lahore, Pakistan.
1st Quarter Report
03
DIRECTORS' REVIEW REPORT
For The Quarter Ended September 30, 2024
The Board of Directors of Interloop Limited (Interloop or the Company) is pleased to present the Directors' review report together with the unaudited financial results of the Company for the three months ended on September 30, 2024.
ECONOMIC AND INDUSTRIAL REVIEW
Pakistan's economy is showing signs of progressive stabilization, with GDP growth recorded at 2.4% in fiscal year 2024 (FY 2024) and projected to accelerate to 3.6% in fiscal year 2025 (FY 2025). A decrease in inflationary pressures and the resumption of a monetary easing cycle are expected to further boost industrial growth.The Consumer Price Index (CPI) was recorded at 9.2% in the first quarter of FY 2025 (1QFY25), a sharp decline from the 29.0% surge experienced in in the first quarter of FY 2024 (1QFY24). This environment prompted the State Bank of Pakistan to maintain an expansionary monetary policy, implementing a cumulative interest rate cut of 450 basis points since June 2024, bringing the rate down to 17.5%.
Additionally, the balance of trade has improved, with a 4.2% year-on-year (YoY) reduction in the overall trade deficit, which reached USD 5.4 billion in 1QFY25. Exports grew by 14.1% YoY, totaling USD 7.9 billion, while imports also rose by 9.9% to USD 13.3 billion. Remittances from overseas workers recorded USD 8.8 billion in 1QFY25, an increase of 39% YoY from the USD 6.3 billion recorded in the same period last year.
In a significant development, the country has entered into a 37-month Extended Arrangement under the IMF Extended Fund Facility (EFF), totaling USD 7.0 billion, with an immediate disbursement of USD 1.0 billion. This support, along with commitments from other bilateral partners, has bolstered foreign exchange stability, resulting in an increase of USD 1.3 billion in forex reserves, now totaling USD 10.7 billion.
Textile and apparel exports recovered in the 1QFY25, rising 9.5% YoY to USD 4.5 billion, up from USD 4.1 billion during the same period last year. Growth was noted across all value-added segments, with knitwear leading the way at a 14.1% increase, reaching USD
1.3 billion. However, challenges loom as cotton crop output has seen a drastic decline of 50% YoY until September 2024, which is expected to hinder productivity and growth within the sector. This situation may force the industry to rely more on imports, compounded by weak global demand and falling international prices.
UNCONSOLIDATED FINANCIAL AND OPERATIONAL PERFORMANCE
In Q1FY2025, the Company delivered a solid 8.14% growth in revenue, reaching Rs. 41,635 million compared to Rs. 38,500 million in Q1FY2024. However, the quarter presented significant cost challenges and a steep increase in the cost of sales outpaced revenue growth, compressing the profitability margins. The gross profit declined by 39.1% to Rs. 7,758 million compared to Rs. 12,746 million in the corresponding period of the prior year, driven by supply chain disruptions and higher input costs. Additionally, the gestation period in the apparel master project has resulted in losses. The bottom line is significantly impacted; profit after taxation decreased by 96.30%, totaling Rs. 222 million, down from Rs. 6,042 million.
Amidst the challenges, the Management is proactively deploying cost control measures, ensuring operational efficiencies, and revisiting pricing strategies to restore profitability. The summarized un-audited financial results for the three months ended September 30, 2024, as against September 30, 2023, are as follows:
04
Three months ended September 30 | |||
2024 | 2023 | Variance | |
Rs. in million | % | ||
Sales - Net | 41,635 | 38,500 | 8.1% |
Gross Profit | 7,758 | 12,746 | -39.1% |
Profit from Operations | 3,721 | 8,758 | -57.5% |
Net Profit | 222 | 6,042 | -96.3% |
Gross Profit Ratio | 18.6% | 33.1% | -43.7% |
Net Profit Ratio | 0.5% | 15.7% | -96.6% |
Earnings per Share - Basic and Diluted (Rupees) | 0.16 | 4.31 | -96.3% |
Rs. in million
50,000 | |||||
40,000 | 41,635 | 38,500 | |||
30,000 | |||||
20,000 | |||||
12,746 | 8,758 | ||||
10,000 | 7,758 | ||||
6,042 | |||||
3,721 | |||||
222 | |||||
0 | |||||
Sales | Gross profit | Profit from operations | Net Profit | ||
Three months ended September 30, 2024 | Three months ended September 30, 2023 |
CONSOLIDATED FINANCIAL REVIEW
Following is the summary of the consolidated financial performance of the group, providing a comprehensive view of the combined operations of its subsidiaries.
In Q1 FY25, the group posted net sales of Rs. 42,746 million, reflecting an 11% year-on- year growth compared to Rs. 38,500 million in Q1 FY24. However, the cost of sales surged by 34%, leading to a 36% decline in gross profit to Rs. 8,140 million from Rs. 12,746 million in the corresponding period of the previous year. Consequently, the gross margin narrowed to 19%, down from 33.1%. Net profit after tax stood at Rs. 334 million, a 94.5% drop from Rs. 6,042 million in Q1 FY24. Earnings per share (EPS) declined significantly to Rs. 0.24 from Rs. 4.31 in the prior period, a 94.5% reduction, primarily due to lower operating margins and increased costs, reflecting the overall challenging market and economic conditions faced during the quarter.
The summarized consolidated financial results for the three months ended September 30, 2024, as against September 30, 2023, are as follows:
1st Quarter Report
05
Three months ended September 30 | |||
2024 | 2023 | Variance | |
Rs. in million | % | ||
Sales- Net | 42,746 | 38,500 | 11.0% |
Gross Profit | 8,140 | 12,746 | -36.1% |
Profit from Operations | 3,844 | 8,758 | -56.1% |
Net Profit | 334 | 6,042 | -94.5% |
Gross Profit Ratio | 19.0% | 33.1% | -42.5% |
Net Profit Ratio | 0.8% | 15.7% | -95.0% |
Earnings per Share - Basic and Diluted (Rupees) | 0.24 | 4.31 | -94.5% |
BUSINESS OUTLOOK AND CHALLENGES
The local economy is in the recovery phase, and the declining inflationary and interest rates would further augment the growth momentum. However unstable global macro outlook and rising geopolitical uncertainty could dampen the outlook. The Management closely tracks the latest developments and takes proactive measures to keep the Company's operations uninterrupted. Interloop remains committed to its customers and major stakeholders and will continue to offer best in class and sustainable products. Particularly the major challenge is the Apparel Master Project ramp and the Management is taking cautious measures to improve its profitability.
The textile sector in Pakistan faces a complex landscape in FY2025. While the recent monetary policy statement indicated a positive outlook and increased investment, several challenges loom. The introduction of higher income taxes for exports and the phase-out of gas-fired captive power plants, coupled with rising utility tariffs and a potential reliance on imported cotton inputs due to lower domestic production, could negatively impact the sector's competitiveness. Furthermore, the IMF's insistence on phasing out preferential treatment and tax exemptions for agriculture and textiles adds to the pressure. The government's commitment to reducing the circular debt, while necessary, will likely lead to further increases in utility tariffs, exacerbating the sector's cost pressures. Despite the challenges, the textile sector is well positioned to absorb displaced orders from Bangladesh provided the swift policy adaptation is ensured to seize the opportunity. Overall, the textile sector's growth trajectory in FY2025 hinges on the government's ability to address these challenges and implement policies that support its sustainability and competitiveness.
The Company has demonstrated its commitment to Corporate Social Responsibility (CSR) initiatives focusing on education, health, sports, and community rehabilitation. In education, the Company established the Need-Based Scholarship Program in partnership with Faisalabad Medical University and opened three new TCF Secondary Schools in Faisalabad and Kasur, with plans for additional primary schools and over 100 scholarships at GCWUF. In healthcare, the Company pledged Rs. 100 million for FY2025 to provide free medical treatment to underprivileged communities. Community rehabilitation efforts include the launching of Batch 6 of Women on Wheels (WOW) initiative, the expansion of the School Khana Program for nutritious meals, establishing an Autism Unit with the District Government. These initiatives underscore the Company's dedication to social responsibility, inclusivity and community empowerment.
06
Interloop is deeply committed to sustainability, integrating it into all aspects of its business. This commitment is reflected in a range of initiatives that address environmental stewardship, social responsibility, and ethical governance. Interloop is the only Company in the global textile industry to earn a Gold Certificate for water stewardship. Additionally, commitment to the circular economy is reflected in the use of Loomshake technology, and banana plant waste yarn highlights its focus on sustainable and traceable materials. To minimize the environmental impact, Effluent Treatment Plants operate 24/7 to meet Zero Discharge of Hazardous Chemicals (ZDHC). Further, 12.6 MW of solar capacity and 103 TPH biomass boilers capacity will significantly cut CO2 emissions. Interloop's Apparel Plant has achieved LEED Platinum certification, the highest rating in Pakistan and globally for a facility of its scale. Powered by renewable energy, the plant supports Interloop's Science Based Targets to decarbonize operations by 2030. The launch of Loopkisan, an innovative agricultural management platform, optimizes local farming practices through advanced features like leveraging GPS technology, real-time data collection, and predictive analytics. These initiatives underscore the Company's dedication to transparency and ethical practices throughout its supply chain.
ACKNOWLEDGEMENT
The Board expresses gratitude to valued shareholders, customers, financial institutions, and regulators for their enduring trust and support. The Board also commends the dedication and hard work of the Company's management and employees. The Board is confident that this spirit of commitment will endure in the years ahead.
For and on behalf of the Board of Directors
Navid Fazil | Jahan Zeb Khan Banth |
(Chief Executive Officer) | (Director) |
1st Quarter Report
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08
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