In the first nine months of the current financial year (July 2022 – March 2023), Walton Hi-Tech Industries, listed in the engineering sector in the capital market, has made a profit of Tk. 250 crore. During this period, the company’s earnings per share (EPS) was Tk. 8.25. However, Walton Hi-Tech Industries Plc. has had to sacrifice a large amount of profit due to the high value of the dollar. In the first nine months of the current financial year, the company’s foreign exchange loss stood at Tk. 392 crore 74 lakh. Which was only 44.18 crores in the same period of the previous year. During this period, the total financial expenditure of the company was 604 crore 79 lakh taka.
In the same period of the previous year, this expenditure was only 149 crore 60 lakhs. As a result, even though the income stream of the business continued, a large part of Walton’s profits went into the gut of the dollar.
This information is known by reviewing the company’s latest published unaudited financial report.
Chief Financial Officer of Walton Hi-Tech Industries Plc. Omar Farooq Ripon said that if the dollar price had not increased, the company’s profit would have been around Tk. 622 crore. And the earnings per share (EPS) would have been around Tk. 21.
According to the published financial report, Walton’s assets per share (NAVPS) for the period ended March 31 of the current financial year (Q3) stood at Tk. 224.57 excluding revaluation and Tk. 327.84 including revaluation. Net operating cash flow per share stood at Tk. 73.70 in the third quarter, which is 550.49 times higher than the same period last year. At the same time, the total bank loans at the end of March 2023 have decreased significantly compared to the end of March 2022. From June last year to March this year, the company’s debt has decreased by about Tk. 830 crore.
It is known that the Net Operating Cash Flow (NOCFPS) has increased at a significant rate as a result of establishing greater control over inventory and improving receivables, monitoring and controlling all costs of the company and proper utilization of resources. Moreover, payments to suppliers and others have reduced significantly compared to the same period of the previous financial year, resulting in a positive NOCFPS.
According to market analysts, since Walton is a giant company in the electronics sector of the country, there is a great possibility that the profit of the company will increase further in the fourth quarter. Because the demand and sales of electronics products in the country increases many times during summer and two Eids. All in all, despite the turbulent global economic situation, Walton is bringing a smell of relief to the electronics business.
It is to be noted that, after the start of the Russia-Ukraine war in February of last year, the prices of raw materials and spare parts of all types of products and transportation costs increased in the world market. Which affects the exchange rate of Bangladeshi currency against the US dollar. In the last one year, the dollar price in the banking sector in the country increased from 85 taka to 110 taka. As a result, most of the listed companies lose huge profits. Many companies run into losses. But due to various innovative plans and timely actions, Walton Hi-Tech has maintained its profit trend despite all the adversities.