Aruj Industries Limited

Aruj Industries Limited, a public limited company founded in 1992, specializes in manufacturing and selling fusible interlining, dying, bleaching, and stitching of fabric. As of June 30, 2025, the company has 10.458 million shares outstanding, with 66.25% held by directors, the CEO, their spouses, and minor children. The remaining shares are distributed among local general public (32.63%) and other categories (1.06%).

Financial performance for ARUJ between 2021 and 2025 shows growth in 2021, driven by regaining lost orders and increased export sales due to Pak Rupee depreciation. However, high inflation, increased costs of imported chemicals and dyes, and higher energy tariffs led to a 5.82% decrease in gross profit margin in 2021. Administrative expenses rose by 2.87% in 2021, while distribution expenses fell by 16.69% due to lower export costs. The operating profit margin declined to 5.02% in 2021 from 6.70% in 2020.

In 2022, ARUJ's net sales dropped 6.68% to Rs. 1,298.73 million due to reduced demand, despite growth in processing and coating sales. Pak Rupee depreciation, higher energy and gas prices, and increased costs of imported chemicals and dyes impacted gross profit, which fell by 39%. Export expenses declined by 52.31% due to lackluster export volumes, while payroll expenses remained unchanged, attributable to adjustments in the minimum wage rate.

The company cut its workforce from 304 employees in 2021 to 269 employees in 2022. ARUJ recorded no profit-related provisions but incurred a loss of Rs. 0.448 million due to an exchange loss. Operating profit fell by 40%, and finance costs increased by 31.62% due to higher discount rates and short-term borrowings. Gearing ratio increased from 56.88% in 2021 to 63.89% in 2022.

In 2023, ARUJ's sales dropped 33.94% to Rs. 858 million, primarily due to sluggish demand and high inflation. Gross loss reached Rs. 60.87 million due to Pak Rupee depreciation, global commodity super cycle, higher energy tariffs, and elevated inflation. Distribution expenses plummeted 91.38% as export sales dwindled, while administrative expenses rose by 6.59% due to increased depreciation and miscellaneous expenses.

Exchange loss of Rs. 1.972 million caused a 340.18% spike in other expenses, and no other income was recorded. The company posted a net loss of Rs. 139.545 million in 2023, with a loss per share of Rs. 13.34. As of 2023, ARUJ's current liabilities exceeded its current assets by Rs. 101.056 million, raising doubts about its ability to continue as a going concern.