Page 38 - InterloopAnnualReport2021

DIRECTORS' REPORT

The Directors of Interloop Limited (‘the company’ or ‘ILP’) are pleased to present the

Annual Report together with the audited Financial Statements and Auditors’ Report
thereon for the year ended June 30, 2021.

ECONOMIC & INDUSTRY OVERVIEW FINANCIAL AND OPERATIONAL
PERFORMANCE
Pakistan’s economy already had a volatile growth pattern
over the years, with regular boom and bust cycles, facing Current financial year has been a challenging year for
challenges in achieving long-term and inclusive growth. Pakistan’s economy. The COVID-19 pandemic has been a
The FY21 began in the midst of the most severe global source of stress and adversity, the world over. Pakistan’s
health crisis experienced in modern history. Despite myriad economy showed its resilience and braced the negative
of challenges, Pakistan’s economy, on the back of various impacts of the global pandemic far better than expected.
measures and achievements during the year, has witnessed The efficient response by the Government and SBP to
a V-shaped recovery post COVID and a growth rate of 3.9% tackle the pandemic resulted in increased business in the
as against initial estimate of 1.5% released by IMF whereas country as compared to the neighboring countries.
the current indicators show visible improvements and the
FY22 whereby it is expected that the economy will grow Despite challenging business environment, the current
by approximately 5% and will accelerate further over the financial year was the most successful year of your
medium term. company by the grace of Allah Almighty. Sales revenue
of your company increased by 51.40% to the highest ever
Moreover, the Ministry of Commerce and Ministry of sales figure of Rs. 54,962.27 million, as compared to Rs.
Industries & Production have played a pivotal role in 36,302.79 million during the corresponding period. Your
developing a permitting environment for industrial company earned profit after tax of Rs 6,291.57 million for
growth. The Textile Industry is considered one of the the year under review as compared to Rs 1,796.40 million
most vital sectors for Pakistan’s economic growth. It is a during the previous year. The net profit translated into
significant contributor to its industrial exports. Pakistan’s Earnings per Share (EPS) of Rs. 7.21 as against Rs. 2.06 of
textile exports have mostly recovered from the COVID-19 last year.
pandemic shocks and have picked up a growing pace.
According to the Pakistan Bureau of Statistics (PBS), textile The operating results of the company are summarized as
exports have increased by 22.94% during FY21. In the textile follows:
sector, the highest exports were of Knitwear segment with
a growth of 37% on a YoY basis. The Knitwear exports were
$ 3.83 billion in FY21 compared to $ 2.80 billion in FY20.
Whereas, Exports of Bed Wear and Readymade Garment’s
segments had substantial growth by 29% YoY and 19% YoY,
respectively.

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