Walton's profit declines by 63.41% in second quarter

The profit of Walton Hi-Tech Industries, the country's leading electronics and technology company, has decreased 63.41% in the second quarter due to a number of factors including significant increase in the value of the Dollar compared to the Taka, increase in the cost of raw materials and freights, and the impact of the ongoing global crisis.

From October to December 2022, the revenue of the company was Tk1,108 crore, which was Tk1,432 crore in the same period of the previous year.

During the period, its net profit after tax dropped by 63.41% to Tk60.46 crore.

Its earnings per share were Tk2, which was Tk5.45 in one year ago.

The company said in the disclosure, the earnings have decreased mainly due to the pandemic, post-pandemic, and recent Russia-Ukraine War, high inflation, and tightening in global financing conditions.

Besides, the price hike of material and Freight cost are vulnerable to global market condition and the currency devaluation of the Taka against foreign currencies as a post-pandemic effect have increased material cost drastically which leads to the declining overall profitability of the company. In addition, VAT has been imposed on the supply of Refrigerator products.

Earlier in the first quarter of fiscal 2022-23, Walton incurred a loss of Tk46 crore and the earnings per share went down to -Tk1.52 from the Tk280.98 crore profit and Tk9.28 earnings per share growth in the same period last year.

Walton entered the electronics and home appliance market in 2008 when the sectors were still import-dependent.

Currently, Walton is leading the refrigerator market with more than 72% 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.