Lahore: Interloop Limited has reported a 54% increase in its earnings per share for the first quarter of the fiscal year 2027, surpassing industry expectations. The company announced consolidated earnings of Rs4.2 billion with an EPS of Rs3.03, reflecting a 14% increase from the previous quarter.

According to JS Global, the earnings exceeded expectations due in part to higher-than-estimated other income and gross margins. Gross margins for the quarter were recorded at 22.7%, a slight decrease from the same period last year but an improvement from the previous quarter. The increase in margins was primarily attributed to improved pricing in the apparel segment, as discussed during the company's annual general meeting.

The company's other income saw a significant rise, increasing more than twofold to Rs1.7 billion, driven by gains on derivatives and export incentives. While net sales showed a Year-on-Year increase of 12%, they declined by 10% on a Quarter-on-Quarter basis, totaling Rs50.7 billion for the quarter.

Interloop's effective tax rate decreased to 29.3%, compared to 39.2% in the same quarter last year, largely due to the removal of the super tax. The company also reported an 8% decline in finance costs, although these costs rose by 13% from the previous quarter. Distribution expenses increased by 25% Year-on-Year, while administrative expenses grew by 6% over the same period.

The company has maintained its positive outlook, continuing its BUY recommendation with a forward price-to-earnings ratio of 6.8x for FY27.