Walton’s profit jumps 22-fold H1 FY24

In a remarkable financial performance, Walton Hi-Tech Industries has reported Tk340 crore profit in the first half of the ongoing fiscal year, marking an impressive 22-fold year-on-year increase. 

The country's leading electronics and home appliance manufacturer unveiled its financial report for the period spanning July to December of FY24 during a meeting held on Monday.

As per the financial statement, the company reported an earnings per share (EPS) of Tk11.24 in the first half of FY24, showcasing a notable increase from Tk0.47 recorded during the corresponding period a year ago.

However, the company's revenue fell by 8% during the period to Tk2,368 crore. It was Tk2,586 crore in the corresponding period last fiscal.

During the October-December quarter, the company achieved a net profit of Tk138 crore, reflecting an impressive 130% growth compared to the corresponding period in the previous year.

In a price-sensitive statement, Walton highlighted that the finance cost during the period witnessed a significant decrease, attributed to the diminished impact of taka devaluation against foreign currencies, particularly the dollar.

The company elaborated that the operating profit margin for the first half of this fiscal demonstrated a notable increase, reaching 22.17%, as compared to 18.71% in the corresponding period. 

Additionally, the finance cost percentage on sales during the July-December period saw a substantial decrease, plummeting from 18.15% in the same period a year ago to 7.51%. 

This favourable financial landscape, as outlined in the statement, played a pivotal role in enabling the company to achieve stellar growth in profit.

Nevertheless, the company faced foreign currency losses totaling Tk43 crore in the first half of this fiscal year, demonstrating a substantial reduction from Tk336 crore reported in the corresponding period.

Earlier, in the July-September quarter of 2022-23, the rapid appreciation of the dollar against the taka resulted in losses to Walton for the first time in its history. In that quarter the company incurred a loss of Tk46 crore.

In September of the previous year, Walton disbursed a generous 300% cash dividend to its general shareholders for FY23, even though the company experienced a 35% decline in profit.

Notably, sponsors and directors received an impressive 90% cash dividend for the same fiscal period.

During the last two trading sessions at the Dhaka Stock Exchange (DSE), Walton shares witnessed a decline of 13%, settling at Tk908.70 each, following the removal of the floor price. 

Its shares closed at Tk908.70 each at the end of Monday session.

Walton entered the electronics and home appliance market in 2008, when the sectors were still import-dependent. 

Currently, Walton is leading the refrigerator market with more than 72% of the market share. 

Besides, the company is doing well in televisions, air conditioners, ceiling fans, LED lights and home appliances sectors as well.

Walton began exporting refrigerators in 2011 and also exports various electronic products, including refrigerators, mobile phones, compressors and televisions, to European, Asian and African countries.