Walton records Tk 304cr profit in July-Dec’2024

Walton Hi-Tech Industries PLC, the country's leading electrical and electronics manufacturing company listed in the capital market, has recorded Tk 304.47 crore net profits during the first half (July-Dec'2024) of the financial year (FY) 2024-25.

The company's unaudited financial statements for 31 December 2024 were disclosed in the second quarter (Q2).  

The report was published after being reviewed and approved by the Company's Board of Directors at its 43rd meeting on Monday (January 27, 2025).

The report says following the post-pandemic impact and Russia's invasion of Ukraine, the global economy continues to be weakened through significant disruptions in trade, food and fuel price shocks, all of which contribute to high inflation and subsequent tightening in global financing conditions. Besides, the price hike of materials, vulnerable global market conditions, and devaluation of Bangladesh's currency against foreign currencies has increased material costs drastically, and the higher inflation rate has impacted the company's operating costs. In addition, VAT on the refrigerator supply has been increased to 7.5 per cent from 5 per cent, and 7.5 per cent VAT has been imposed on the air conditioners supply under the Finance Act 2024.

Reflecting the challenges posed by these combined economic and political factors, Walton's profit margin in the current financial year's first half (July-Dec'24) decreased to 19% from 22.17% in the previous period. In comparison, finance costs increased marginally to 7.73% of net revenue from 7.51% in the last period.

In July-Dec'24, Walton's net profit margin fell to 11.96% of sales from 14.37% in the previous period. As a result, the Company's net profit after tax in the first half of FY 2024-25 stood at Tk 304.47 Crore and Earnings Per Share (EPS) of Tk 10.05, whereas net profit after tax and EPS was Tk 340.35 crore and Tk 11.24, respectively in the previous year's corresponding period.

As of December 31, 2024, the Company's Net Asset Value Per Share (NAVPS) stood at Tk 264.07 without revaluation and Tk 365.47 with revaluation.

The Company's Net Operating Cash Flows Per Share (NOCFPS) for the period ended 31 December 2024 stood at Tk 6.93, a decline from Tk 27.16 in the previous period. This reduction is primarily attributed to payments made by the company to its suppliers from customer collections, in contrast to reliance on bank borrowings. Additionally, payments to suppliers and the Government Exchequer have increased to accommodate higher material purchases to sustain sales growth during the upcoming peak seasons.

Walton Hi-Tech's management noted that these strategic cash flow adjustments underscore our commitment to fostering long-term growth and maintaining a robust operational foundation to strengthen our market presence.

However, management anticipated that the Company's profits would be healthier in the next quarters of the current Financial Year following the peak sales season.