Leading electronics producer Walton Hi-Tech Industries reported a slight decline in quarterly profit at its 25th board meeting on Sunday.
Walton generated profit worth Tk 373.8 crore or Tk 12.34 per share in the January to March quarter this year, down 4.5% from the same quarter of the year latest, according to price-sensitive information posted on the company’s website.
In a nine-month comparison for the current fiscal year, the company reported earnings of Tk 27.07 per share compared to Tk 34.26 per share in the same period a year earlier.
The board of directors of the company has also approved the purchase of land measuring approximately 588.38 decimals at Chandra, Kaliakair, Gazipur for its BMRE project at a cost of Tk 44.1 crore.
An equity research analyst declined to comment before analyzing the company’s quarterly financial reports.
However, speaking to Dhaka Tribune, Md Rafiqul Islam, Corporate Secretary of Walton Hi-tech Industries, pointed out that despite revenue growth over last year, third quarter profits fell due to rising world prices and the shortage of raw materials. .
“Everyone in the capital market has seen their earnings decline to some degree, and naturally that has affected us as well,” Islam said.
“Shipping prices have also increased recently, increasing our costs, but we couldn’t increase the price of our finished products until January,” he added.
According to the company secretary, Walton has already raised prices for finished goods and the impact of this decision will be seen in the next quarter.
“We have experienced continuous growth and recently acquired the rights to a fully automated compressor plant which will increase our production capacity to five million units per year, adding to our current production capacity. It will also help us establish a significant market share in Europe and other markets around the world, and this current decline will fade,” Islam said.
Walton acquired a fully automated inverter and non-inverter compatible compressor manufacturing facility with a capacity of 3.2 million units per year and also purchased three European brands
For the continuation of the activities of the acquired brands, Walton has decided to open operational offices in Europe and the United States, with the aim of conquering the world market with the famous European brands, according to the top brass of Walton.
Walton also won the tender for the acquisition of three European brands ACC, Zanussi Elettromeccanica (ZEM) and Verdichter (VOE) including the brand, brand rights in 57 countries, as well as R&D intellectual properties – patents, design and software licenses – have now been acquired by Walton.
Through the purchases of these three European brands, Walton will manufacture and market various electronic products globally, including compressors, refrigerators, televisions and air conditioners, which are also expected to have a positive impact on the company’s upcoming financial report. business.
The local appliance giant currently exports products such as televisions, freezers, air conditioners, compressors and compressor parts to 45 countries in Asia, Europe, the Middle East, Africa and India. ‘America.
Walton was also the first company to start manufacturing refrigerators and freezers in the country in 2008 by importing compressors from the famous Italian brand that it now owns.
Currently, exports account for nearly 20% of Walton’s total revenue.
With revenue of nearly Tk 7,000 crore in the 2020-21 financial year, the appliance maker posted an after-tax profit of Tk 1,639 crore in the same year, compared to Tk 726 crore. Tk the previous year.
Walton Hi-Tech Industries went public in 2020.
Currently, the company’s sponsors and directors hold 99.03% of its shares, while institutional investors hold 0.35%, foreign investors 0.10% and general investors 0.52%.
Walton stock closed at Tk 1,109.30 per share on Sunday at Dhaka Stock Exchange.