International Knitwear Limited (INKL) reported earnings per share of PKR 3.19 for FY25, compared to PKR 1.14 in FY24. Furthermore, in 1QFY26, the company reported earnings per share of PKR 1.16, compared to earnings per share of PKR 0.71 in the same period last year (SPLY).
The company is sales mix includes a balanced mix of both local and export sales, which provides stability against adverse market conditions. The company’s domestic customers include Khaadi, Ideas, Edenrobe, and others, while its international clients include Higgins, Hipercor, and several more.
The company relies heavily on working capital financing therefore, the recent reduction in the SBP policy rate has positively impacted its profitability. The company remains significantly reliant on bank borrowing, with short-term financing accounting for around 50% of its cash flows.
The gross amount of short term financing currently stands at PKR 42 million. Management also highlighted that in FY25 the company incurred PKR 22 million in air shipment cargo, which are expected to decline in the current year. Additionally, the company has installed a 250 KVA solar system to reduce energy expenses. The company operates on a custom based order system, with products largely tailored on an order to order basis
Important Disclosures
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