Walton records robust profit in July-December of FY-2023

Despite the challenging global business environment, Bangladeshi electronics giant, Walton Hi-Tech Industries has demonstrated strong profit growth for the period spanning July to December in the Financial Year 2023-24.

The Bangladeshi electronics giant has reported a remarkable increase in profits, approximately 23 times or a staggering 2,270 percent growth, for the July-December period of 2023 compared to the corresponding period in the previous year.

Furthermore, Walton Hi-Tech experienced significant growth in key financial indicators, such as Operating Profit Margin, Earnings Per Share (EPS), Net Asset Value Per Share (NAVPS), and others, throughout the initial six months (July-December) of the current Financial Year 2023-2024.

Such a picture of the Company's financial indicators was reflected in its Second Quarter (Q2) Un-audited Financial Statements for the period ended 31 December 2023.

The report was published after approval given by the Company's Board of Directors during its 37th meeting held on Monday (January 22, 2024).

According to the report, Walton Hi-Tech recorded a profit of Tk 340.35 crore during the July to December 2023 period, marking a substantial increase from the Tk 14.36 crore profit in the corresponding period of the previous year.

During the second quarter (October 2023 to December 2023), the company's profit surged to Tk 138.28 crore, a notable increase from the Tk 60.46 crore reported during the same period in the previous year.

The finance costs, both in terms of amount and percentage, for the period from July 2023 to December 2023, were notably lower compared to the corresponding period, primarily due to a reduced impact of Taka devaluation against foreign currencies such as Euro and USD. Nevertheless, the company incurred foreign currency losses amounting to Tk 43.75 crore during the July to December 2023 period, a significant improvement from the Tk 336.10 crore incurred in the same period of the previous year.

Consequently, the company's Earnings Per Share (EPS) for the period ending December 31, 2023, reached Tk 11.24, a significant increase from Tk 0.47 in the same period of the previous year. As of December 31, 2023, the Net Asset Value Per Share (NAVPS) for the company stood at Tk 244.26 without revaluation and Tk 345.75 with revaluation.

In the period, the company's Net Operating Cash Flows Per Share (NOCFPS) stood at Tk 27.16.

During the period from July 2023 to December 2023, the percentage of finance costs was reduced significantly. In that period, the percentage of finance costs against sales was recorded at 7.51 percent, which was 18.15 percent in the same period of the previous year.

At the end of the Second Quarter of the current Financial Year (2023-2024), the Company's total Finance Costs were recorded at Tk 177.93 crore, which was Tk 469.33 crore in the same period of the previous year.

As a result, the company's profit after tax for the period ended December 31, 2023, stood at 14.37 percent which was 0.56 percent in the same period of the previous year.

However, the management of Walton Hi-Tech Industries anticipated that the Company’s profits would be healthier in the next quarters of the current Financial Year.