Walton records profit in July-September 2024

Walton Hi-Tech Industries PLC, the country's leading electrical and electronics manufacturing company listed in the capital market, has announced its unaudited financial report for the first quarter ending September.

The report was published after being reviewed and approved by the Company's Board of Directors at its 42nd meeting on Monday.

According to the published report, the company posted Tk 149.03 crore profit in the first quarter (July-September) of the current financial year 2024-25 as against of Tk 202.07 crore profit in the same period of the previous year.

The company's operating profit margin decreased slightly to 21.38% in July-Sept 2024 from 22.58% in the prior period. In the first quarter of the current financial year, the company's finance costs rose to 10.12% of sales, up from 5.22% in the prior period, due to increased foreign currency losses due to currency devaluation and higher interest rates.

In July-Sept 2024, foreign currency losses totalling Tk 45.85 crore, combined with increased interest expenses and sales and distribution costs, reduced the company's net profit after tax. These factors collectively impacted the company's profitability, reflecting the financial environment's challenges.

As a result, the Company's Earnings Per Share (EPS) stood at Tk 4.92 for the period ending September 30, 2024, compared to Tk 6.67 for the previous year.  

As of September 30, 2024, the Company's Net Asset Value Per Share (NAVPS) stood at Tk 282.80 without revaluation and Tk 388.22 with revaluation.

The Company's Net Operating Cash Flows Per Share (NOCFPS) for September 30, 2024, stood at Tk 3.92, compared to Tk 16.68 in the previous year. This reduction in NOCFPS is primarily due to decreased customer collections, as the company extended supportive credit terms to strengthen its distribution network, ensuring market stability and sustainability. In addition, the company's payments to suppliers and the government exchequer increased to accommodate higher material purchases necessary for sustaining sales growth.  

These strategic cash flow adjustments reflected the company's commitment to fostering long-term growth and maintaining a resilient operational foundation to support its market presence.

In the previous days, the company's management successfully reduced the foreign currency losses through practical measures. As the management's effort continues, the aforesaid losses will be reduced in the coming days, expressing the hope Walton authorities noted that the company has also given special attention to increasing the amounts of receivable collections.