Walton's Third Quarter Profits and Future Prospects
Walton Hi-Tech Industries PLC, the country's leading electrical and electronics company listed in the engineering sector of the stock market, has earned a profit of 696.44 crore Taka by the end of the third quarter of the 2024-2025 fiscal year (July 2024-March 2025). The company had previously distributed a 350% dividend among its shareholders in the last fiscal year.
According to the unaudited financial report of the third quarter, the company's profit for the period ending March 31, 2025, stands at 696.44 crore Taka. This was revealed after the 44th board meeting of the company, held on Sunday (April 27, 2025), where the unaudited financial report for the period under review was reviewed and approved.
The report indicates that global economic instability, caused by the post-pandemic Russia-Ukraine war, rising fuel prices, high inflation, and supply chain disruptions, has impacted the company. Additionally, the significant increase in raw material costs in the international market, combined with the depreciation of the Bangladeshi Taka against foreign currencies, has raised raw material expenses to an unusual level. Furthermore, the high inflation rate has impacted the company’s operating costs. As per the Finance Act 2024, VAT on refrigerator supplies has been increased from 5% to 7.5%, and a new 7.5% VAT has been imposed on air conditioners.
As a result of these rising costs, the company’s operating profit margin for the period ending March 31, 2025, decreased to 22.09% from 24.73% in the same period of the previous year. Moreover, the financial expenses, as a percentage of sales, increased to 7.29% from 6.14% in the previous year, due to high interest rates and the depreciation of the Taka against the US dollar.
Reflecting these overall economic and political challenges, Walton's post-tax net profit for the period from July 2024 to March 2025 amounts to 696.44 crore Taka, compared to 762.34 crore Taka during the same period of the previous fiscal year.
During the same period (July 2024-March 2025), Walton's earnings per share (EPS) stood at 22.99 Taka, down from 25.17 Taka in the previous year. In the third quarter, i.e., January-March 2025, the company’s EPS was 12.94 Taka, compared to 13.93 Taka in the same period of the previous year.
As of March 31, 2025, the company’s net asset value per share (NAVPS) stood at 277.04 Taka without revaluation, and 378.41 Taka with revaluation.
According to the report, Walton's net operating cash flow per share (NOCFPS) for the nine-month period (July 2024-March 2025) was negative 1.83 Taka, compared to 22.88 Taka during the same period of the previous year. It was noted that during the peak sales season, a substantial amount of raw materials were purchased to ensure adequate supply for achieving sales growth, resulting in an increase in VAT, tax payments, and payments to raw material suppliers compared to the previous year. This primarily caused the reduction in NOCFPS.
Looking ahead, the company’s management has expressed optimism that its profits will improve in the final quarter (April-June 2025), as this is the peak season for electronic product sales.
In addition to the financial report, the board approved the project for the production of Bangladesh's first state-of-the-art lithium-ion battery cells. The implementation of this project will advance Bangladesh's position in producing innovative technological products. Furthermore, Walton’s management is confident that the project will significantly reduce the country’s dependency on imports, create new employment opportunities, and boost export earnings.
