AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
FAISALABAD: Interloop Limited (ILP) held its Corporate Briefing Sessions today, revealing significant financial insights and future plans. The company, aiming for $700 million in revenue by the fiscal year 2026, reported a four-year sales growth of 33% in local currency terms and 16% in U.S. dollars. This growth is attributed to its diversified production across hosiery, denim, apparel, and activewear.
The briefing noted a decline in gross margins from 28% in FY24 to 21% in FY25, though an improvement to 23% was seen in the first quarter of FY26. This improvement was mainly due to reduced losses in the apparel segment. Hosiery remained profitable last year, and declining losses in other segments are now enhancing overall profitability.
ILP discussed potential impacts from tariff reductions on India but suggested its product mix could mitigate sector effects. The company highlighted Pakistan’s compliance with global textile export requirements, citing an advantage over countries like Bangladesh.
Current pricing was disclosed as approximately $6.1 per dozen for hosiery, $3.5 for apparel, and around $10 per unit for denim. The company’s power needs, ranging from 37 to 40 MW, are predominantly met through utility sources, with a weighted average power cost of Rs33 per unit. Biomass, gas, and waste heat recovery contribute to steam generation at a cost of Rs6,800 per ton.
A regional sales shift was observed, with Europe growing to 45% of the mix in FY25, up from 39% in FY24, while the U.S. saw a decline. Utilization rates varied across segments, with notable increases in apparel and activewear.
Revenue in FY25 rose 11% year-over-year to $615 million, with the Hosiery Plant 6 achieving a record ramp-up. ILP’s growth trajectory surpassed the broader textile sector, with exports increasing by 10% compared to the industry’s 7%.
Despite a decline in net profit due to ramp-up costs, profits rebounded in 1QFY26 with a net margin improvement of 6.4%. The Apparel Plant, fully operational with a capacity for 20 million garments annually, is expected to increase production.
Challenges from global supply chain disruptions, higher sales taxes on raw materials, and elevated regional costs were acknowledged. Nevertheless, ILP maintains a positive outlook, supported by a “BUY” recommendation with projected price-to-earnings ratios for FY26E and FY27F.