Interloop earnings jump 85% in Q1 2023

Interloop earnings jump 85% in Q1 2023

Interloop earnings jump 85% in Q1 2023

Interloop Limited (ILP), a textile and apparel export company, posted a profit of Rs 4.96 billion in the first quarter of fiscal year 2022-23, beating industry expectations.

According to the company’s financial results, profit increased by 85 percent compared to Rp 2.69 billion recorded in the same period last year.

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The company’s earnings per share (EPS) rose to Rs 5.31 in 1QFY23 from Rs 2.88 last year but down from 5.74 in the last quarter of FY22.

Gross margin was 33.2 percent QoQ but increased 28.6 percent year-on-year in Q1 2022 due to inventory gains.

Realized sales of Rs 30.46 billion during the period, up 58 percent yoy based on increased usage in both segments: knitwear and denim. According to a Topline Securities report, management said the denim segment was at full capacity and the knitwear segment was at 85 percent capacity. In addition, the contribution of foreign exchange earnings to income is around Rs 3 billion.

Cost of sales rose 48 percent year-on-year to Rs 20.35 billion on the back of higher cotton prices in domestic and international markets and higher depreciation costs due to the expansion of Knitwear plant- V and Garment Factory.

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Selling expenses increased 42% yoy and 21% qoq to Rs 1.15 billion. As a percentage of sales, selling expenses were 3.8 percent compared to 3.1 percent in Q1 2022. Administrative expenses rose 67 percent year-on-year to Rs 1.6 billion due to rising inflationary pressures and expansion.

The company’s cost of financing experienced a large increase of 238% year-on-year and 35% quarter-over-quarter due to higher borrowing and interest rates.

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The company’s effective tax rate was 6.5 percent for the quarter, compared with 5.8 percent in the first quarter of fiscal year 22 and 8.8 percent in the last quarter of fiscal year 22.

Interloop earnings jump 85% in Q1 2023