TBT Desk: Walton Hi-Tech Industries PLC, country's leading electrical and electronics manufacturing company listed in capital market, has recorded about Tk 696.44 crore net profits during the first nine months (July'2024-March'2025) of the financial year (FY) 2024-25.
It was disclosed in the third quarter (Q3) unaudited financial statements of the company for the period ended 31 March, 2025.
The report was published after reviewed and approved by the Company's Board of Directors in its 44th meeting held on Sunday. The report says, following the post pandemic impact and Russian's invasion of Ukraine, global economy continues to be weakened through significant disruptions in trade, food and fuel price shocks, all of which are contributing to high inflation and subsequent tightening in global financing conditions. Besides, the price hike of material, vulnerable global market condition and devaluation of Bangladesh currency against foreign currencies have increased material cost drastically and also higher inflation rate has been impacted on company's operating cost. In addition, VAT on the supply of refrigerator has been increased to 7.5 percent from 5 percent and also 7.5 percent VAT has been imposed on the supply of air conditioner under the Finance Act 2024.
Due to increased cost pressures, the company's operating profit margin during the July-March period of 2024-2025 declined to 22.09% from 24.73% in the previous year's same period. In addition, the finance cost as a percentage of sales rose to 7.29% from 6.14%, driven by higher borrowing costs and devaluation of Bangladesh currency against dollar.
As a result of these combined economic and political challenges, the net profit after tax for the period ended 31 March, 2025 stood at TK.696.44 Crore and Earnings Per Share (EPS) of Tk 22.99 whereas in comparative period ended 31 March, 2024 the net profit after tax was Tk 762.34 crore and EPS was Tk 25.17.
As on March 31 of 2025, the Company's Net Asset Value Per Share (NAVPS) stood at Tk 277.04 without revaluation and Tk 378.42 with revaluation.
The Company's Net Operating Cash Flows Per Share (NOCFPS) for the period ended 31 March, 2025 stood at Tk 1.83 negative, a decline from Tk 22.88 in the previous period. This decrease is primarily due to a strategic shift in working capital management, whereby payments to suppliers were made using collections from customers rather than bank borrowings.
Furthermore, payments to suppliers for goods and services, as well as disbursements to the Government Exchequer for income tax and VAT, increased in line with higher procurement volumes aimed at supporting anticipated sales growth during the current and upcoming peak seasons. These strategic adjustments in cash flow management reflect our long-term commitment to sustainable growth and operational resilience, reinforcing our position in the market.
However, the management anticipated that the Company's profits would be healthier in the last quarter (April-June) of the current Financial Year following the peak season of sales.