Faisalabad: Interloop Limited (ILP) is set to announce its financial results for FY24, projecting a significant year-over-year decline in earnings due to increased operational costs, despite achieving record annual exports.

According to JS Global, ILP expects to report an earnings per share (EPS) of Rs12.20 for FY24, marking a 15% decline compared to the previous year. This anticipated decrease is primarily attributed to a high base effect from last year’s windfall exchange gains, which resulted from the sharp depreciation of the currency. Excluding these gains, the earnings estimates would show a 50% increase year-over-year. For the fourth quarter of FY24, the company is expected to see a 34% year-over-year and a 4% quarter-over-quarter decline in earnings. This downturn is largely due to heightened expenses linked to the new Apparels plant and increased financing costs from rising export refinance rates and Kibor-based borrowing.

The report also anticipates ILP will announce a final cash dividend of Rs3.00 per share, bringing the total dividend per share (DPS) for FY24 to Rs5.00. Despite the challenges posed by the changing tax regime for exporters starting FY25, JS Global maintains a ‘Buy’ rating on ILP, with a target price of Rs90, suggesting approximately a 26% upside from the current levels. The optimism is supported by the company’s aggressive expansion plans which are expected to drive long-term earnings growth.