Walton Hi-Tech Industries PLC, country’s leading electrical and electronics manufacturing company listed in capital market, has recorded Tk 304.47 crore net profits during the first half (July-Dec’2024) of the financial year (FY) 2024-25.

It was disclosed in the second quarter (Q2) unaudited financial statements of the company for the period ended 31 December, 2024.  

The report was published after reviewed and approved by the Company's Board of Directors in its 43rd meeting held on Monday (January 27, 2025). 

The report says, following the post pandemic impact and Russian's invasion of Ukraine, global economy continues to be weakened through significant disruptions in trade, food and fuel price shocks, all of which are contributing to high inflation and subsequent tightening in global financing conditions. Besides, the price hike of material, vulnerable global market condition and devaluation of Bangladesh currency against foreign currencies have increased material cost drastically and also higher inflation rate has been impacted on company's operating cost. In addition, VAT on the supply of refrigerator has been increased to 7.5 percent from 5 percent and also 7.5 percent VAT has been imposed on the supply of air conditioner under the Finance Act 2024.

Reflecting the challenges posed by these combined economic and political factors, Walton’s profit margin in the first half (July-Dec’24) of the current financial year decreased to 19% percent from 22.17% in the previous period while finance costs percentage marginally increased to 7.73% of net revenue from 7.51% in the previous period. 

In the period of July-Dec’24, Walton’s net profit margin fell to 11.96% of sales from 14.37% in the previous period. As a result, Company’s net profit after tax in the first half of FY 2024-25 stood at Tk 304.47 Crore and Earnings Per Share (EPS) of Tk 10.05 whereas net profit after tax and EPS was Tk 340.35 crore and Tk 11.24 respectively in the previous year’s corresponding period.

As on December 31 of 2024, the Company's Net Asset Value Per Share (NAVPS) stood at Tk 264.07 without revaluation and Tk 365.47 with revaluation. 

The Company’s Net Operating Cash Flows Per Share (NOCFPS) for the period ended 31 December, 2024 stood at Tk 6.93, a decline from Tk 27.16 in the previous period. This reduction is primarily attributed to payments made by the company to its suppliers from customer collections, in contrast to reliance on bank borrowings. Additionally, payments to suppliers and the Government Exchequer have increased to accommodate higher material purchases aimed at sustaining sales growth during the upcoming peak seasons. 

These strategic cash flow adjustments underscore our commitment to fostering long-term growth and maintaining a robust operational foundation to strengthen our market presence, the management of Walton Hi-Tech noted. 

However, the management anticipated that the Company’s profits would be healthier in the next quarters of the current Financial Year following the peak season of sales.