Page 62 - InterloopAnnualReport2020

Earnings Per Share Denim Project

The Basic and Diluted earnings per share after tax is Rs. As part of business diversification & expansion, Interloop
2.06 (2019: Rs. 6.67) has entered into the Denim Apparel Segment and
successfully installed one of the most technologically
Dividend advanced production facility with a capacity of 20,000
pieces per day, with minimal environmental impact. The
The Board of Directors of the Company in the meeting held First phase successfully started operations in the second
on Sep 16, 2020 have proposed a final cash dividend of Rs. quarter of FY20 and commercial production began in Dec
1 per share (i.e. 10%). This is in addition to Rs. 1 per share 2019. Unfortunately, the COVID-19 pandemic affected
(i.e. 10%) interim cash dividend already distributed; which the business badly as it faced cancellation of orders.
make a total cash distribution of Rs. 2 (i.e. 20%) for the year However, the situation is gradually improving now and we
ended Jun 30, 2020. expect to achieve 80-85% average capacity utilization in
FY21. Our marketing teams are working hard and adding
The proposed final cash dividend is subject to approval of new customers to our portfolio. The Management is fully
the members at the Annual General Meeting to be held on committed to the project and strongly believes that it will
Oct 15, 2020. These financial statements do not include the provide sound return to its shareholders. The project is
effect of above proposal which will be accounted for in the complete in terms of infrastructure and almost 80% of the
period it is approved by the members. budget has already been consumed. In the second phase,
the production capacity will be enhanced to 40,000 pieces
Business Segments per day by installing further top of the line machinery.

Pilot Project - Hosiery Plant 5
The Management of the Company has determined the
operating segments based on the information that is The Hosiery Plant 5 Pilot Project became operational in
presented to the Board of Directors of the Company for Jan 2019, with 94 modern Italian Knitting Machines and is
allocation of resources and assessment of performance. currently operating with 210 Knitting Machines, utilizing the
Segment performance is generally evaluated based on existing infrastructure. This has enhance the production
certain key performance indicators including business capacity from 6,000 to 10,000 dozens per day, which
volume and gross profit. equates to almost 25% capacity of the main plant 5, being
designed to produce 42,000 dozen per day.
Based on internal management reporting structure and
products produced and sold, the Company is organized Upon completion, this Plant will be distinct from the existing
into the following operating segments: facilities because of the New Team Organogram concept.
a) Hosiery - This segment relates to the sale of socks & The new structure is designed to remove extra supervisory
tights layers, the Management working in shifts and Knitting
Technical & Knitting Operations teams merged as one team.
b) Spinning - This segment relates to the sale of yarns
As this unit will be one of its kind, supplying products to
c) Other operating segments - This represents various major brands of the world, the layout planning and structural
segments of the Company which currently do not design is of paramount importance. With the engagement
meet the minimum reporting threshold stated in the of top notch architects and internationally renowned lean
International Financial Reporting Standards. These and layout experts, building layouts and schematics have
mainly include Domestic Sales, Energy, Yarn Dyeing, already been finalized.
Denim and Active Wear.
The project pace slowed down due to COVID-19 pandemic
and global lockdowns, however, the Management is fully
committed and working on this project aggressively. On
completion, this Project will be LEED certified (Leadership in
Energy and Environmental Design) and will be a state of the
art manufacturing facility in the textile industry in Pakistan.

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