Walton posts 63% decline in Q2 earnings

The country’s leading electronics and home appliance maker Walton Hi-Tech Industries (WALTONHIL) has reported a 63.30 percent slump in its second-quarter earnings in 2022.

Walton’s EPS (earnings per share) was Tk 2.00 for October-December 2022 as against Tk 5.45 for October-December 2021said the company in a filing with the Dhaka Stock Exchange on Thursday.

Moreover, EPS was Tk 0.47 for July-December 2022 as against Tk 14.73 for July-December 2021. NOCFPS was Tk 61.07 for July-December 2022 as against Tk (16.78) for July-December 2021. NAV per share (with revaluation) was Tk. 320.06 as on December 31, 2022, and Tk 334.68 as on June 30, 2022. NAV per share (without revaluation) was Tk 216.77 as on December 31, 2022, and Tk. 231.34 as on June 30, 2022.

EPS has decreased mainly due to the pandemic, post-pandemic and recent Russia-Ukraine War, high inflation, and tightening in global financing conditions, Walton said as reasons for the deviation earnings.

Besides, the price hike of material and freight cost vulnerable global market condition and currency devaluation of taka against foreign currencies as a post-pandemic effect have increased material cost drastically that leads in declining overall profitability of the company.

In addition, VAT has been imposed on supply of Refrigerator products.

NOCFPS has been increased significantly due to control over inventories and improvement of receivable and close monitoring and control over expenses and utilization of resources.

In addition, payment to suppliers and others has been decreased in the similar way from its working capital which contributed to achieve this healthy NOCFPS.

As of Thursday, Walton’s share has been unchanged at Tk 1047.70 since September 2022.