Interloop Ltd.PSX: ILP

Transmission of 3rd Quarterly Report for the Period Ended March 31, 2025

Apr 30, 2025 at 6:19 AM UTC · Issued by Interloop Ltd.

2025

INTERL€fi7

QUASTERLYREPORT FORTHE3'QUARTER EHDEDNHWCH8L

FULL FAMILY CLOTHING PARTNER OF CHOICE

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

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 36

Consolidated Condensed Interim Statement of Profit or Loss 38

Consolidated Condensed Interim Statement of Comprehensive Income 39

Consolidated Condensed Interim Statement of Changes in Equity 40

Consolidated Condensed Interim Statement of Cash Flows 41

Notes to the Consolidated Condensed Interim Financial Statements 43

COMPANY INFORMATION

BOARD OF DIRECTORS

MUSADAQ ZULQARNAIN

Chairperson / Non-Executive Director

NAVID FAZIL

Chief Executive Officer / Executive Director

MUHAMMAD MAQSOOD

Executive Director / Group CFO

FARWA HASNAIN

Independent Director

FATIMA ASAD KHAN

Independent Director

ROMANA ABDULLAH

Independent Director

TARIQ IQBAL KHAN

Independent Director

FARYAL SADIQ

Executive Director

JAHAN ZEB KHAN BANTH

Non-Executive Director

CHIEF FINANCIAL OFFICER

MUHAMMAD MAQSOOD

COMPANY SECRETARY

RANA ALI RAZA

HEAD OF INTERNAL AUDIT

JAMSHAID IQBAL

CHIEF INFORMATION OFFICER

MUHAMMAD YAQUB AHSAN BHATTI

LEGAL ADVISOR

HAIDERMOTA & CO.

AUDITORS

KRESTON HYDER BHIMJI & CO.

Chartered Accountants

AUDIT COMMITTEE

TARIQ IQBAL KHAN

Chairperson

ROMANA ABDULLAH

Member

JAHAN ZEB KHAN BANTH

Member

HUMAN RESOURCE & REMUNERATION COMMITTEE

FATIMA ASAD KHAN

Chairperson

NAVID FAZIL

Member

FARWA HASNAIN

Member

FARYAL SADIQ

Member

JAHAN ZEB KHAN BANTH

Member

NOMINATION COMMITTEE

MUSADAQ ZULQARNAIN

Chairperson

NAVID FAZIL

Member

MUHAMMAD MAQSOOD

Member

RISK MANAGEMENT COMMITTEE

TARIQ IQBAL KHAN

Chairperson

MUHAMMAD MAQSOOD

Member

FATIMA ASAD KHAN

Member

ROMANA ABDULLAH

Member

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.M.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: https://www.interloop-pk.com LinkedIn: Interloop Limited Twitter: @InterloopLtd Instagram: interlooplimited YouTube: Interloop Limited

REGISTERED OFFICE

Interloop Limited

15-A, Peoples Colony No. 1, Faisalabad, Pakistan

Phone: (92-41) 4360400

Fax: (92-41) 2428704

Email: externalaffairs@interloop.com.pk Website: https://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

HOSIERY PLANT 1

1 KM, Khurrianwala-Jaranwala Road, Khurrianwala, Faisalabad, Pakistan.

HOSIERY PLANT 2 & 4

7 KM, Khurrianwala-Jaranwala Road, Khurrianwala, Faisalabad, Pakistan.

HOSIERY PLANT 3 & DENIM PLANT

8 KM, Manga-Raiwind Road, Distt. Kasur, Lahore, Pakistan.

APPAREL PLANT 1

117 / J.B near Paharang Nala, Millat Road, Dhanola, Faisalabad, Pakistan

HOSIERY PLANT 5 & 6

APPAREL PLANT 2

6 KM, By Pass Road, Khurrianwala, Faisalabad, Pakistan.

DIRECTORS' REVIEW REPORT

"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 nine months ended March 31, 2025."

ECONOMIC AND INDUSTRIAL REVIEW

Pakistan's economy is demonstrating resilience, with projections indicating a steady recovery throughout FY2025. Recent data reveals a year-on-year GDP growth of 1.73% in the second quarter of FY2025, driven by contributions from agriculture (1.10% growth) and services (2.57% growth). Notably, the first quarter's growth was revised upward to 1.34% from an initial 0.92%, reflecting stronger-than-expected performance in the services and industrial sectors.

The International Monetary Fund (IMF) projects a real GDP growth of 3.2% for FY2025, supported by improving economic indicators. However, challenges persist, including a 33% reduction in cotton output, from 7.753 million bales in FY2024 to 5.19 million bales in FY2025, attributed to adverse weather conditions, pest infestations, and inadequate research funding . This decline in cotton production has implications for the textile sector, a significant contributor to Pakistan's exports.

Effective management of external accounts and robust inflows have stabilized Pakistan's macroeconomic indicators in 9M FY2025. The trade deficit held steady at USD 17.9 billion year-on-year, with exports rising 7.7% to USD 24.7 billion and imports increasing 6.3% to USD 42.6 billion. The current account recorded a surplus of USD 1.86 billion, a significant improvement from the USD 1.7 billion deficit in the same period last year, driven by a 33% year-on-year surge in remittances and a contained trade deficit. Inflation moderated substantially to 5.4% year-on-year in 9M FY2025, down from 27.2% in 9M FY2024, enabling the State Bank of Pakistan to reduce the policy rate by 1,000 basis points to 12% since June 2024. The Pakistani Rupee's stability against the USD further supported the central bank's foreign exchange reserves, which reached USD 10.7 billion by March 2025.

Textile and apparel exports exhibited a strong recovery in the first nine months of FY2025, rising by 9.4% year-on-year to USD 13.6 billion, compared to USD 12.4 billion in the same period last year. This growth was driven primarily by value-added segments, with knitwear and readymade garments increasing by 16.8% and 19.1% year-on-year, respectively. However, this positive momentum is at risk due to recent U.S. trade policy changes.

UNCONSOLIDATED FINANCIAL AND OPERATIONAL PERFORMANCE

The financial performance for the nine months ended March 31, 2025, demonstrates a divergence in trends compared to the corresponding period in the previous year. While the company achieved an 11.1% increase in sales, reaching PKR 125,408 million, this revenue growth did not translate into improved profitability. Gross profit experienced a contraction of 27.3% to PKR 24,593 million, leading to a reduced gross profit margin of 19.6% (FY2024: 30.0%). This downward trend continued through the income statement, with profit from operations decreasing by 45.5% to PKR 12,055 million and net profit decreased by 79.4% to PKR 2,710 million. Consequently, the net profit margin also declined to 2.2% (FY2024: 11.7%), and earnings per share (basic and diluted) both decreased by 79.4% to PKR 1.9 per share. These results reflect the combined impact of elevated input costs, a stagnant exchange rate, increased financial charges due to higher working capital requirements, and the gestation period of the newly launched apparel master project.

However, the financial performance in the third quarter of FY2025 demonstrates an improvement in profitability compared to the preceding quarter. Maintaining a stable gross profit margin of 20.1%, the company achieved an increase in net profit of 16.2%, reaching PKR 1,337 million. This positive outcome resulted in an enhanced net profit margin of 3.2%, up from 2.7% in Q2 FY2025. Correspondingly, earnings per share (basic and diluted) also saw a substantial rise of 16.2% to PKR 0.95 per share, reflecting a positive trajectory in the company's bottom-line performance on a sequential basis.

	Nine months ended Mar 31 2025 2024 Variance
	Rs. in million		%
Sales - Net	125,408	112,856	11.1%
Gross Profit	24,593	33,840	-27.3%
Profit from Operations	12,055	22,133	-45.5%
Net Profit	2,710	13,155	-79.4%
Gross Profit Ratio	19.60%	30.00%	-34.6%
Net Profit Ratio	2.20%	11.70%	-81.5%
Earnings per Share - Basic and Diluted (Rupees)	1.9	9.4	-79.4%

Rs. in million

150,000

125,408 112,856

24,593 33,840

22,133

12,055

13,155

2,710

120,000

90,000

60,000

30,000

Sales

Gross profit Profit from operations Net Profit

Nine Months ended March 31, 2025

Nine Months ended March 31, 2024

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.

The group earned a consolidated revenue of PKR. 130,541 million, showing a 14.3% increase from the corresponding period of last year. However, the net profit fell by 78.4% from PKR 13,987 million ( EPS: PKR. 9.98 per share) to PKR. 3,028 million ( EPS: PKR 2.16 per share).

The summarized consolidated financial results for the nine months ended March 31, 2025, as against March 31, 2024, are as follows:

	Nine months ended Mar 31 2025 2024 Variance
	Rs. in million		%
Sales- Net	130,541	114,118	14.3%
Gross Profit	25,894	34,253	-24.4%
Profit from Operations	12,426	22,968	-45.9%
Net Profit	3,028	13,987	-78.4%
Gross Profit Ratio	19.8%	30.0%	-33.9%
Net Profit Ratio	2.3%	12.3%	-81.1%
Earnings per Share - Basic and Diluted (Rupees)	2.16	9.98	-78.4%

BUSINESS OUTLOOK AND CHALLENGES

Management anticipates a dynamic operating environment in FY2026, shaped by both opportunities and headwinds. Domestically, macroeconomic stability is gradually improving, but globally, volatility persists due to geopolitical tensions and shifting trade dynamics. The

U.S. recently announced reciprocal tariff, currently paused for 90 days, creating short-term uncertainty. If implemented, this could curtail U.S. in-house demand and dampen export sales. However, Pakistan may retain a relatively competitive edge as similar or even steeper tariffs have been levied on key regional competitors including China, Bangladesh, Vietnam, Cambodia, and Indonesia. That said, global demand is expected to remain subdued, with buyers exercising caution and excess production capacity in alternative regions adding downward pressure on prices. Despite these headwinds, Pakistan's relative positioning may offer resilience, particularly for exporters focused on value-added textiles.

On the upside, softening global commodity prices, particularly crude oil, may ease input costs and support further interest rate cuts in Pakistan, reducing borrowing costs for the sector. In response, Interloop is pursuing a multi-pronged strategy: expanding into new markets, improving operational efficiencies, managing input volatility, and aligning with global ESG benchmarks.

Interloop is advancing its sustainability agenda in FY2026 through strategic initiatives. A partnership with Reverse Resources enables digitized tracking and recycling of pre- and post-consumer textile waste, enhancing supply chain traceability in Pakistan. Additionally, Interloop supports ALIF's ECO Schools program, equipping educators to embed sustainability in curricula and foster future environmental leaders. The company's efforts were recognized with the 2024 Just Style Excellence Awards in Business Expansion, Innovation, and Environment, affirming its leadership in sustainable growth and value chain transparency.

Interloop remains steadfast in its commitment to Corporate Social Responsibility, with a robust portfolio of initiatives in education and community well-being. In education,

the company has advanced its need-based scholarship offering to the new batches of Government College University, Faisalabad (GCUF), National Textile University (NTU), PAF-IAST, Haripur, UET Faisalabad Campus, Government College Women University, Faisalabad (GCWUF), the University of Agriculture, Faisalabad (UAF), Lahore University of Management Sciences (LUMS) and the Vocational Training Institute (VTI). Interloop also initiated construction of primary schools in Kasur and Nankana Sahib and commenced classes at two newly established secondary schools in Faisalabad. For community wellbeing, the Company signed an MoU with (Karachi Down Syndrome Program) KDSP to establish a Down Syndrome Center in Faisalabad, aimed at empowering individuals with Down Syndrome. These initiatives underscore Interloop's dedication to fostering education and social inclusion, positioning the company as a responsible corporate citizen.

ACKNOWLEDGEMENT

The Board of Directors extends its sincere appreciation to all stakeholders, including our valued shareholders, customers, financial institutions, and regulatory authorities, for their continued trust and support. We also acknowledge the invaluable contributions of our management team and employees, whose dedication, resilience, and professionalism have been pivotal to the Company's sustained performance and progress. Their commitment remains the driving force behind our continued growth and success.

For and on behalf of the Board of Directors

Navid Fazil Jahan Zeb Khan Banth

(Chief Executive Officer) (Director)

Faisalabad April 29, 2025

Rs. in million

150,000

125,408 112,856

24,593 33,840

22,133

12,055

13,155

2,710

120,000

90,000

60,000

30,000

Sales

Gross profit Profit from operations Net Profit

Nine Months ended March 31, 2025 Nine Months ended March 31, 2024

2025

14.3%

114,118

130,541

-24.4%

34,253

25,894

-45.9%

22,968

12,426

-78.4%

13,987

3,028

-33.9%

30.0%

19.8%

-81.1%

12.3%

2.3%

-78.4%

9.98

2.16

2025

11.1%

112,856

125,408

-27.3 %

33,840

24,593

-45.5%

22,133

12,055

-79.4 %

13,155

2,710

-34.6%

30.00%

19.60%

-81.5%

11.70%

2.20%

-79.4%

9.4

1.9

3'^ Qu arter Repo rt 11

UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

For The Quarter and Nine Months Ended March 31, 2025

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As at March 31, 2025

Un audited			Audited
March 31,			June 30,
2025			2024
Note (Rupees in '000)			(Rupees in '000)
ASSETS
NON CURRENT ASSETS
Property, plant and equipment	5	80,863,156		67,804,680
Intangible asset		468,520		454,557
Long term investments	6	1,727,763		1,727,763
Long term loans - staff		201,651		176,873
Long term deposits		90,651		89,451
Deferred taxation - net		206,113		350,141
CURRENT ASSETS		83,557,854		70,603,465
Stores and spares		3,403,838		3,184,425
Stock in trade		32,264,367		26,360,852
Trade debts	7	45,632,620		41,193,604
Loans and advances		1,593,468		1,924,171
Deposit, prepayments and other
receivables		288,277		347,722
Derivative financial instruments		68,746		59,248
Accrued income		15,424		1,497
Refunds due from Government and
statutory authorities		13,210,262		7,128,807
Short term investments		500,000		500,000
Cash and bank balances		338,205		370,386
		97,315,207		81,070,712
TOTAL ASSETS		180,873,061		151,674,177

Un audited			Audited
March 31,			June 30,
2025			2024
Note (Rupees in '000)			(Rupees in '000)
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorized share capital	8	50,000,000		50,000,000
Issued, subscribed and paid up capital	9	14,017,095		14,017,095
Reserves		3,158,734		3,158,734
Unappropriated profit		35,562,170		36,356,646
NON CURRENT LIABILITIES		52,737,999		53,532,475
Long term financing	10	28,994,664		16,194,813
Lease liabilities		209,636		190,965
Deferred liabilities		12,854,918		10,786,348
CURRENT LIABILITIES		42,059,218		27,172,126
Trade and other payables		14,430,351		15,536,209
Unclaimed dividend		3,286		3,077
Accrued mark up		1,685,237		2,689,232
Short term borrowings		66,996,723		49,903,571
Current portion of non current liabilities		2,960,247		2,837,487
		86,075,844		70,969,576

CONTINGENCIES AND COMMITMENTS

TOTAL EQUITY AND LIABILITIES

180,873,061

151,674,177

The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS

Quarter ended

Nine months ended

Un audited Un audited Un audited Un audited March 31, March 31, March 31, March 31,

2025 2024 2025 2024

Note (Rupees in '000) (Rupees in '000)

For The Quarter and Nine Months Ended March 31, 2025

Sales - net Cost of sales 12	41,437,122 (33,128,199)	39,040,380 (27,683,977)	125,407,958 (100,814,719)	112,856,129 (79,016,072)
Gross profit	8,308,923	11,356,403	24,593,239	33,840,057
Distribution cost	(1,446,166)	(1,311,647)	(4,931,351)	(3,838,367)
Administrative expenses	(2,555,462)	(2,309,374)	(7,180,048)	(6,598,184)
Other operating expenses	(337,389)	(538,176)	(894,086)	(1,679,908)
Other income	17,888	87,813	467,482	409,159
	(4,321,129)	(4,071,384)	(12,538,003)	(11,707,300)
Profit from operations Finance cost	3,987,794 (2,021,497)	7,285,019 (2,607,446)	12,055,236 (7,571,598)	22,132,757 (7,410,612)
Profit before income tax and levies Levies	1,966,297 (447,884)	4,677,573 (537,233)	4,483,638 (1,241,354)	14,722,145 (1,532,118)
Profit before income tax Taxation	1,518,413 (181,232)	4,140,340 (11,184)	3,242,284 (532,486)	13,190,027 (34,696)
Profit for the period	1,337,181	4,129,156	2,709,798	13,155,331
Earnings per share - basic and diluted (Rupees)	0.95	2.95	1.93	9.39

The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

Quarter ended

Nine months ended

For The Quarter and Nine Months Ended March 31, 2025

Un audited Un audited Un audited Un audited March 31, March 31, March 31, March 31, 2025 2024 2025 2024 (Rupees in '000) (Rupees in '000)
Profit for the period	1,337,181	4,129,156	2,709,798	13,155,331
Other comprehensive income:
Items that will not be reclassified subsequently to profit or loss:	-	-	-	-
Items that may be reclassified subsequently to profit or loss:	-	-	-	-
Total comprehensive income for the period	1,337,181	4,129,156	2,709,798	13,155,331

The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

Capital Reserves

Revenue Reserve

Share Capital

Share Premium

Employee Unappropriated Share Option Profit

Total

For The Nine Months Ended March 31, 2025

Compensation Reserve
			(Rupees in '000)
Balance as at July 01, 2023 - audited	14,014,469	3,143,605	6,968	26,641,364	43,806,406
Profit for the period	-	-	-	13,155,331	13,155,331
Other comprehensive income	-	-	-	-	-
Total comprehensive income for the period	-	-	-	13,155,331	13,155,331
Transaction cost on issuance of shares	-	(34)	-	-	(34)
Employee share option scheme (ESOS)	-	-	4,187	-	4,187
Transactions with owners:
Shares issued under employee share option scheme	2,626	14,128	-	-	16,754
Dividend to ordinary shareholders	-	-	-	(5,606,963)	(5,606,963)
Balance as at March 31, 2024 (un-audited)	14,017,095	3,157,699	11,155	34,189,732	51,375,681

Balance as at July 01, 2024 - audited Profit for the period Other comprehensive income Total comprehensive income for the period Transactions with owners: Dividend to ordinary shareholders	14,017,095	3,158,734		-		36,356,646		53,532,475
	- -		- -		- -		2,709,798 -		2,709,798 -
	- -	- -		- -		2,709,798 (3,504,274)		2,709,798 (3,504,274)
Balance as at March 31, 2025 (un-audited)	14,017,095	3,158,734		-		35,562,170		52,737,999

The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

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