Foreign Currency

Q3 Walton profits up 79% as forex losses shrink

Walton Hi-Tech Industries PLC, a listed electrical and electronics appliance giant, posted a 79 per cent year-on-year profit in the third quarter (January-March) of FY24 as losses on foreign currency transactions eased.

At the same time, in the nine months of this FY, the company posted 205 per cent higher profits compared year-on-year. Walton Hi-Tech Industries published its financial report on the Dhaka Stock Exchange (DSE) website on Monday.

Walton secured a remarkable 79 per cent year-on-year growth while posting Tk 422 crore in profits in the third quarter through March FY24, supported by a significant decrease in foreign currency transaction losses.

Its earnings per share rose to Tk 13.93 for the January-March quarter, up from Tk 7.78 for the same quarter a year ago, according to its financial statements.

The company financial statement mentions that it spent Tk 41.60 crore on foreign exchange transactions in the first nine months of FY24, compared to Tk 392.73 crore spent in the same period last year.

This has helped the company reduce its finance costs by 56 per cent compared to the previous year.

The company reported that its operating profit margin improved to 24.73 per cent from 21.03 per cent during this period, while the finance cost percentage on sales decreased to 6.14 per cent from 14.79 per cent, largely due to lower impact from devaluation against forex.

In the nine months of the current fiscal year (FY24), the company’s profit surged by Tk 513 crore, marking a 205 per cent growth year-on-year.

The company’s Third Quarter (Q3) Un-audited Financial Statements for the period ending on July to March 31 this year showcased a profit of Tk 762 crore, a substantial increase from Tk 249.91 crore in the same period previous year.

According to the published report, EPS for the period ended March 31, 2024, reaching Tk 25.17 compared to Tk 8.25 for the same period of previous year.

In the July 2023-March 2024 period, the finance cost percentage on sales decreased to 6.14 per cent from 14.79 per cent in the same period of previous year, with total finance costing at Tk 263.07 crore at the end of Q3 of 2023-24, compared to Tk 604.79 crore year-on-year.

The company’s NAVPS stood at Tk 258.22 without revaluation, and Tk 359.68 with revaluation as of March 31, 2024. Notably, the Net Operating Cash Flows per Share (NOCFPS) stood at Tk 22.88 during this period.

Its shares closed at Tk 645.60 each at the end of Monday 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 percent stake in the company, while Institutional investors owned 0.44 percent, foreign investors 0.10 percent, and the general public 0.56 percent until March 2024.

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

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