Qudsia Bano

The revenue of chemical maker Archroma Pakistan Limited decreased 18% to Rs6.5 billion in the first quarter of the ongoing financial year 2022-23 (1QFY23) from Rs7.9 billion in the corresponding period of the previous fiscal.The gross profit of the company also decreased 45% to Rs1.1 billion in 1QFY23 from Rs2 billion recorded in 1QFY22.The company posted a net profit of Rs145.4 million in 1QFY23 compared to a profit of Rs750 million over the corresponding period of FY22, showing a negative growth of 79% year-on-year.

Brand and performance textile specialties, whose sales fell by 18%, and coating, adhesive and sealants, whose revenue fell by 8%, were the primary contributors to the 18% drop in sales, whilst packaging and paper specialties saw an increase of 24% over the same time of the previous year. Less capacity utilisation and lower production volumes further reduced the company's gross margins, which had a negative impact on its profitability, reports WealthPK.

Performance in 2021-22

During the fiscal year 2021-22, the company’s gross sales moved up to Rs29.4 billion from Rs23.5 billion in FY21, posting an increase of 25% year-on-year.   The gross profit for FY22 stood at Rs7.2 billion, 17% up from Rs6.2 billion in FY21.However, the profit-after-tax for the year went down by 18% to Rs1.9 billion from Rs2.3 billion in FY21. The considerable devaluation of the Pakistani rupee against the US dollar and other major currencies has had a negative impact on the profitability, reports WealthPK.

The earnings per share (EPS) of the company showed a mixed trend during recent years. In FY21, the EPS was Rs67.69, which decreased to Rs55.25 in FY22.

About Company

Archroma Pakistan is a limited liability company primarily engaged in the manufacture, import, and sale of chemicals, dyestuffs and coating, adhesives and sealants. It also acts as an indenting agent. The company is a subsidiary of Archroma Textiles Gmbh, registered and headquartered in Reinach, Switzerland.

Credit: Independent News Pakistan-WealthPk