Archroma Pakistan Limited (ARPL) reported loss per share of PKR 15.87 for SY24, compared to earnings per share of PKR 36.47 in SY23. Furthermore, in 3QSY25, the company reported earnings per share of PKR 8.01, compared to Loss per share of PKR 5.30 in the same period last year (SPLY).
The company’s current portfolio includes textiles, packaging, and paper, with a more recent entry into the construction business. The textile division remains the primary revenue driver, accounting for 90% of the business. However, the company is actively seeking to diversify its portfolio to reduce this concentration.
In the dyes and applications segment, a portion of the Huntsman portfolio has been commercialized, with further sales expected in the coming year. The company is prioritizing growth in the dyes business and has partially regained market share in the indigo business that was lost in the previous year.
A significant challenge for the company is the tax disparity in the chemical & dyes market. Imported dyes & chemical are largely tax free, while the company is subject to sales tax. Additionally, the company faces stiff competition and under-invoicing from imported value-added products, which undermines its efforts in this sector. The company plans to expand its presence into the Middle East and African markets.
This expansion will not only target the construction and chemical sectors but also include the home and personal care segments. Management projects that margins will remain stable or would improve in the future, driven by enhanced operational efficiencies.
Important Disclosures
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