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 |
11 | |
Unconsolidated Condensed Interim Financial Statements | |
Independent Auditors' Review Report to the Members | 13 |
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 | |
Independent Auditors' Review Report to the Members | 35 |
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 |
Half Year 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
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.
Half Year Report
03
DIRECTORS' REVIEW REPORT
For the Half Year Ended December 31, 2024
"The Board of Directors of Interloop Limited (Interloop or the Company) is pleased to present financial results of the Company duly reviewed by the statutory auditors, for the half year ended December 31, 2024."
ECONOMIC AND INDUSTRIAL REVIEW
Pakistan's economy is demonstrating signs of resilience, with projections indicating a modest recovery in the latter half of fiscal year 2025 (FY2025). The International Monetary Fund (IMF) has revised its GDP growth forecast for Pakistan to 3%, down from the earlier projection of 3.2% for the fiscal year ending June 2025. This adjustment reflects challenges such as a decline in industrial output and lower yields of major crops, which have contributed to a modest GDP growth of 0.92% in the first quarter of FY2025. However, the IMF anticipates that economic recovery will gain momentum from the second quarter onwards, with a projected real value-added growth of 3.0% for FY2025.
Prudent external accounts management and increased inflows have improved key macro indicators. The trade deficit for 1HFY'25 remained stable at USD 11.2 billion on a year on year (YoY) basis, with exports growing by 10.5% to USD 16.6 billion and imports rising by 6.1% to USD 27.7 billion. This coupled with healthy remittance inflows of USD 17.8 billion, up 32.8% YoY during 1HFY'25, supported the current account balance to post a surplus of USD 1.2 billion during 1HFY'25, compared to a deficit of USD 1.4 billion in the same period of last year. Inflation eased to 7.2% in 1HFY'25, down from 28.8% in 1HFY'24, allowing the SBP to cut the policy rate by 850 basis points to 12%. The PKR also remained stable against USD providing positive support to the central bank's foreign exchange reserves, which surged by USD 2.4 billion to USD 11.7 billion by end of December 2024.
Textile and apparel exports reported a notable recovery during 1HFY'25, increasing by 9.7% YoY to USD 9.1 billion. The growth was primarily driven by value-added segments, with knitwear and readymade garments rising by 16.5% and 22.5% YoY, respectively. While the textile sector demonstrated resilience, it faced significant challenges due to a marked decline in domestic cotton production. Cotton arrivals have contracted sharply by 33% on YoY basis reaching 5.5 million bales by December 2024. This shortfall poses a threat to both near-term productivity and long-term growth prospects, necessitating increased reliance on imported cotton to meet the supply gap.
UNCONSOLIDATED FINANCIAL AND OPERATIONAL PERFORMANCE
During 1HFY'25 the Company recorded a healthy growth of 13.8% in revenue, increasing from Rs. 73,816 million in 1HFY'24 to Rs. 83,971 million. However, the cost of sales increased substantially by outpacing revenue growth and resulting in a lower gross profit of Rs. 16,284 million, primarily due to higher input costs and the gestation period in the Apparel master project. This pressure on gross profit translated to 45.7% decline in operating profit. Consequently, profit after taxation plummeted by 84.8% to Rs. 1,373 million, compared to Rs. 9,026 million in corresponding years. The reduced profit after tax is reflected in a drop in EPS from Rs. 6.44 per share to Rs. 0.98 per share.
The second quarter of fiscal year 2025 (Q2FY'25) demonstrated signs of recovery in profitability. The cost optimization measures and improved utilization resulted in improvement in gross profit margin by 9.9%, while the net profit margin increased to 2.7% in Q2FY'25 compared to 0.5% in Q1FY'25. The turnaround in trajectory is reflected in improved financial performance, earnings per share (basic and diluted) increased by 4.2x to Rs. 0.82 per share from Rs 0.16 per share. This improvement in EPS underscores the company's efforts towards its strategic objectives and its commitment to delivering shareholder value.
04
The summarized un-consolidated financial results for the half year ended December 31,
2024 as against December 31, 2023, are as follows:
Half Year ended December 31 | |||
2024 | 2023 | Variance | |
Rs. in million | % | ||
Sales - Net | 83,971 | 73,816 | 13.8% |
Gross Profit | 16,284 | 22,484 | -27.6% |
Profit from Operations | 8,067 | 14,848 | -45.7% |
Net Profit | 1,373 | 9,026 | -84.8% |
Gross Profit Ratio | 19.4% | 30.5% | -36.3% |
Net Profit Ratio | 1.6% | 12.2% | -86.6% |
Earnings per Share - Basic and Diluted (Rupees) | 0.98 | 6.44 | -84.8% |
Rs. in million
100000 | ||||||
80000 | 83,971 | 73,816 | ||||
60000 | ||||||
40000 | ||||||
20000 | 16,284 | 22,484 | 14,848 | |||
8,067 | 9,026 | |||||
1,373 | ||||||
0 | Sales | Gross profit | Profit from operations | Net Profit | ||
Half Year ended ended December 31, 2024 | Half Year ended ended December 31, 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.
For the six months ended December 31, 2024, the Group recorded net sales of Rs. 87,349 million, reflecting an 18.1% year-on-year growth compared to Rs. 73,984 million in the same period last year. However, gross profit declined by 24.5% to Rs. 17,087 million, as rising input costs led to a contraction in gross margin to 19.6% from 30.6%. Profit from operations fell by 47.7% to Rs. 8,201 million, while net profit after tax dropped sharply by 85.0% to Rs. 1,483 million, compared to Rs. 9,857 million in the prior year. Consequently, the net profit margin contracted to 1.7%, down from 13.3%.
Half Year Report
05
The summarized consolidated financial results for the half year ended December 31, 2024, as against December 31, 2023, are as follows:
Half Year ended December 31 | |||
2024 | 2023 | Variance | |
Rs. in million | % | ||
Sales- Net | 87,349 | 73,984 | 18.1% |
Gross Profit | 17,087 | 22,631 | -24.5% |
Profit from Operations | 8,201 | 15,676 | -47.7% |
Net Profit | 1,483 | 9,857 | -85.0% |
Gross Profit Ratio | 19.6% | 30.6% | -36.0% |
Net Profit Ratio | 1.7% | 13.3% | -87.3% |
Earnings per Share - Basic and Diluted (Rupees) | 1.06 | 7.03 | -85.0% |
BUSINESS OUTLOOK AND CHALLENGES
Macroeconomic conditions have generally improved, and as per IMF's projections Pakistan economy is expected to grow 3% in FY2025 as the recovery expands in the second half of the year. Improved investor confidence, stable macroeconomic indicators and a steady revival in industrial activity are expected to further enhance the country's business landscape. However, global macroeconomic instability, geopolitical uncertainties, newly implemented trade related tax and tariff measures by the USA, and ongoing regional conflicts pose potential risks. Interloop's management remains vigilant, actively monitoring these developments and implementing proactive strategies to ensure seamless business operations. The company continues to prioritize its commitment to customers and stakeholders by delivering high-quality, sustainable products.
The Company reinforced its commitment to Corporate Social Responsibility (CSR) by expanding its initiatives in education, healthcare, and sports. The Company strengthened its Need-Based Scholarship Program, inducting new recipients at Government College Women University Faisalabad (GCWUF), University of Agriculture, Faisalabad and Lahore University of Management Sciences (LUMS). The Company aided underprivileged communities by donating medicines to the Rural Health Center Phool Nagar, Kasur and the Indus Hospital. To promote inclusivity in sports, the Company organized multiple events including the 4th Quaid-e-Azam T-20 Cup 2024 for wheelchair cricket, 4th T-20 Blind Cricket World Cup 2024, and the 2nd Interloop T-20 Women Championship 2024-25.
Interloop continues to lead the way in sustainability and responsible business practices. The commitment to environmental impact is reflected in voluntary compliances and certifications including LEED Platinum certification for Apparel plant and Alliance for Water Stewardship (AWS) Gold Certification for Denim and Hosiery plant, making Interloop only Company in the global textile sector to hold this distinction. It has also secured Forest Stewardship Council (FSC®) certification, ensuring that our plant-based fibers and yarns are sourced responsibly. These milestones underscore company's commitment to operational excellence, environmental stewardship and sustained long-term growth.
06
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. 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) |
Faisalabad | |
February 19, 2025 |
Half Year Report
07
08
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