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Home-grown tech giant Walton Hi-Tech Industries has posted a significant 32 per cent fall in its earnings in the second quarter in the fiscal 2021-22 due to rising raw materials in the international market.
The country’s electronic giant reported an EPS (earnings per share) of Tk 5.45 for October-December period, down from Tk 8.05 in the same period a year earleir.
“Our raw material purchase expenses went up due to high price in the international market. But the retail price of our products was not raised accordingly, which eventually affected our profits,” Walton Company Secretary Md Rafiqul Islam told The Business Post.
The company will readjust the retail price of its products if raw materials price continues to rise in the international market, he said.
The net operating cash flow per share (NOCFPS) of Walton was negative Tk 16.78 in the first half of the current financial year, which was Tk 47.95 in the previous year’s first half. Its net asset value (NAV) per share (with revaluation) was Tk 309.24 as on December 31, 2021 and Tk 311.59 as on June 30, 2021.
The news of profit decline affected Walton shares on the Dhaka bourse as its share price declined 3.7 per cent to Tk 1,090.8 on Thursday. The price moved between Tk 1,008 and Tk 1,524 on DSE throughout the last one year.
Walton Hi-Tech is a billion dollar company having Tk 34,313 crore market capitalisation and Tk 303 crore paid-up capital. The company has Tk 9,043 crore in surplus reserve.
Walton Hi-Tech Industries was incorporated in 2006 and started its operation in 2008. It got listed with the capital market in 2020.
The company manufactures refrigerator, freezer, air conditioner, and compressor and is now expanding its operation to television, and other home electronics appliances.
