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Megacap electrical and electronics appliance maker Walton Hi-Tech Industries PLC witnessed a massive setback in its business growth as the electronics giant posted a loss of Tk 46 crore in the first quarter (July-September) of the fiscal year 2022-23.
The Tk 317 billion market-cap company said it had suffered losses in the just concluded quarter because of a steep rise in its production cost and other expenses triggered by the soaring raw materials prices in the global market amid Russia-Ukraine war, and the mighty dollar value against the taka, eventually burning its cashbooks.
The publicly traded large-cap firm posted Tk 281 crore in net profit in the first quarter of the fiscal year 2021-22.
It logged a per-share loss of Tk 1.52 for July-September of FY23 versus earnings per share (EPS) of Tk 9.28 in the same period last year.
The company registered earnings per share (EPS) of Tk 40.16 for fiscal 2021–22 which was Tk 54.21 for the previous fiscal.
According to a filing posted on the website of the Dhaka Stock Exchange (DSE) on Monday, the company’s earnings plunged mainly due to an unusual hike in raw materials prices, surging freight costs, volatile market conditions, and the steep depreciation of the taka against the US dollar.
The Russia-Ukraine war hampered the prospects of a post-pandemic corporate recovery instead it fueled inflations across the globe, subsequently breaking its profitability, the DSE filing read.
The megacap company’s net operating cash flow per share (NOCFPS) stood at Tk 36.44 for July-September of FY23 against Tk 4.33 for July-September of FY22.
Its net asset value (NAV) per share with revaluation stood at Tk 318.06 till September 2022 which was Tk 334.68 as on June 2022.
The company’s share prices were stuck at its floor price of Tk 1047.7 per share on Monday.
Walton Hi-Tech Industries is the second largest listed company in terms of market capitalisation.
Earlier, the electrical and electronic appliance maker’s Sponsor Director SM Ashraful Alam had offloaded 1 lakh shares out of his total holding through the Dhaka Stock Exchange.
That offloading was implemented aiming to comply with the securities regulator’s order that every listed company must have a minimum of 10 per cent free float shares in the stock market.
Currently, Walton’s free float share accounts for only 0.98 per cent of its total shares in the DSE.
The Bangladesh Securities and Exchange Commission (BSEC) in last December gave the company’s board three years to comply with that order.
Free-float shares are those held by external shareholders who are listed shareholders and do not require a previous declaration to trade firm equities.
Earlier in 2020, Walton raised Tk 100 crore through the capital market.
The company has a paid-up capital base of Tk 302 crore.
Incorporated in 1977, Walton Hi-Tech Industries started manufacturing refrigerators, freezers, air-conditioners, and compressors in early 2008.
Institutional investors hold a 0.36 per cent stake in the company, while foreign investors own 0.1 per cent, and the general public 0.52 per cent till September this year.
