ocal tech giant Walton Hi-Tech Industries secured a 12.4 per cent year-on-year growth in profit in the second quarter through December to Tk 1.55 billion as its revenue increased but finance cost fell.
The earnings per share rose to Tk 5.13 in October-December last year from Tk 4.56 in the same quarter the year before.
In the quarter through December last year, revenue jumped 14.29 per cent year-on-year to Tk 13.32 billion.
On the other hand, finance cost was reduced by 31.54 per cent year-on-year to Tk 0.74 billion in Q2, FY25. The company in the second quarter of FY24 bore Tk 9.26 as finance cost per Tk 100 revenue earned, which fell to Tk 5.55 in the same quarter of FY25.
The profit growth could be much higher if the cost of goods sold and selling and administrative expenses had not increased year-on-year.
Walton spent Tk 65.55 in cost of goods sold per Tk 100 revenue earned in Q2 of FY25, which was Tk 64.53 a year ago.
During the same time, it had selling and administrative expenditure of Tk 17.63 per Tk 100 revenue, increased from Tk 13.72 in the second quarter of FY24.
Walton saw its profit decline more than 10.54 per cent year-on-year to Tk 3.04 million in the six months to December.
However, revenue rose 3.29 per cent year-on-year to Tk 24.46 billion in H1 of FY25.
Following the latest earnings disclosure, the share price of Walton fell 1.25 per cent to Tk 497.40 per share on the Dhaka Stock Exchange on Tuesday.
Meanwhile, the consolidated net operating cash flow per share went down to Tk 6.93 in July-December last year from Tk 27.16 in the same period a year earlier.
The reduction in NOCFPS is primarily because of payments made to suppliers from collections instead of bank borrowings, said the company in its disclosure.
“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.”
The company paid a 350 per cent cash dividend to shareholders for the last fiscal year. Its profit was Tk 13.52 billion in FY24, 73.32 per cent higher than the previous year. today.thefinancialexpress.com.
