Despite the challenging landscape facing Pakistan’s textile sector, where a negative trend has been prevalent, certain companies are bucking the trend and consistently reporting annual profits, highlighting the importance of innovation and technology infusion throughout the textile value chain.
Interloop Limited recently disclosed its achievement of a profit of Rs20.17 billion for the fiscal year 2023, ending on June 30. This marks a significant increase from the previous fiscal year’s profit of Rs12.36 billion, demonstrating impressive growth of 63% in just one year.
As one of Pakistan’s prominent textile exporters, Interloop Limited also reported a notable rise in net sales, reaching Rs119.2 billion during FY23, a 31% increase compared to Rs90.89 billion in FY22. Despite the surge in sales, the cost of goods sold remained at Rs79.3 billion in FY23, slightly up from Rs64.83 billion in FY22, resulting in a robust gross profit growth of 53%, reaching Rs39.87 billion in FY23.
In an environment where the cost of doing business has risen significantly in recent years, Interloop Limited’s operating expenses also saw an increase, totaling Rs12.92 billion, marking a 26% rise in FY23.
The company announced a final cash dividend of Rs2 per share, supplementing the interim cash dividend of Rs3 per share paid earlier for the year ending June 30, 2023.
Specializing in hosiery, denim, knitwear, activewear, and yarns, Interloop Limited boasts an annual turnover of $476 million.
According to Muhammad Abrar Polani, a Textile Analyst at Arif Habib Limited, Interloop’s net sales experienced a 39% year-over-year increase due to growth in exports. The company benefited from currency depreciation, which made its products more competitive in the international market.
While Pakistan’s overall textile exports for FY 2022-2023 declined by 10% to $16.63 billion, Interloop Limited’s exceptional performance underscores the potential for growth and profitability within the sector through strategic innovation and adaptation to changing market dynamics.