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Walton profits rise sharply as forex losses ease

Staff Correspondent
23 Jan 2024 22:31:38 | Update: 23 Jan 2024 22:31:38
Walton profits rise sharply as forex losses ease

The net profit of Walton Hi-Tech Industries PLC rose sharply year-on-year in the first six months of FY24, as the company’s foreign exchange losses eased.

At a meeting on Monday, the nation's top producer of electronics and home appliances revealed its financial report covering the July-December of FY24. The report was published on the Dhaka Stock Exchange (DSE) website on Tuesday to inform shareholders.

As per the statement, the company's earnings per share (EPS) for the first half of FY24 were Tk 11.24. This represents a significant rise over the Tk 0.47 registered during the same period last year.

In a price-sensitive statement, the company said it incurred Foreign Currency Exchange losses during the period from July 1, 2023 to December 31, 2023 amounting to Tk 43.75 crore only, against Tk 336.10 crore in the same period of the previous financial year 2022-2023.

Mainly, as a result of this significant decrease of foreign currency exchange losses in financial costs, the Company makes net profit after tax reached Tk 340.35 crore during the period from July 01, 2023 to December 31, 2023, against the profit of Tk 14.36 crore recorded in the same period previous FY, added the disclosure in DSE website.

That is why, the company's Earnings Per Share (EPS) for the period ending on December 31, 2023 stood at Tk 11.24, against Tk 0.47 recorded in the same period previous FY.

The company's revenue, which was Tk 2,368 crore during the first half of FY24, has decreased year-on-year by 8 per cent. The equivalent period of the previous fiscal year saw Tk 2,586 crore in revenue.

With an astounding 130 per cent gain over the same period last year, the company's net profit for the October-December quarter came in at Tk 138 crore.

Earlier, in the July-September quarter of 2022–2023, Walton experienced losses for the first time in the company's history due to the swift rise of the USD against Taka. The business lost Tk 46 crore during the quarter.

Walton distributed a substantial 300 per cent cash dividend to its general shareholders in September of the previous year, despite a 35 per cent decrease in the company's profit.

Walton gave a 250 per cent cash dividend to its general investors and 150 per cent cash to sponsor directors for FY22. During the same fiscal term, sponsors and directors notably got an amazing 90 per cent cash dividend.

During the last two trading sessions at the Dhaka Stock Exchange (DSE), Walton shares witnessed a decline of 13 per cent, settling at Tk 908.70 each, following the removal of the floor price.

Its shares closed at Tk 840.60 each at the end of Tuesday session.

Currently, Walton is leading the refrigerator market with more than 72 per cent 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.

In 2020, Walton had raised Tk 100 crore through the capital market. The company has a paid-up capital base of Tk 302 crore.

Sponsors and directors held a 98.99 per cent stake in the company, while Institutional investors owned 0.38 per cent, foreign investors 0.10 per cent, and the general public 0.53 per cent until December 2023.

Incorporated in 1977, Walton Hi-Tech Industries started manufacturing refrigerators, freezers, air conditioners, and compressors in early 2008.