Written by The Banking Post
Walton Hi-Tech Industries has reported a 48% year-on-year surge in profit to Tk 2.21 billion in the first quarter of FY26, powered by stronger sales and a steep decline in finance costs.
According to the company’s earnings statement, sales grew 19% year-on-year to Tk 14.51 billion, while finance costs plummeted 65% to Tk 381 million in the quarter ending September. The improvement came as Walton reduced short-term debt from Tk 17.88 billion in June to Tk 12.15 billion in September, easing the burden of interest expenses and foreign exchange losses.
“This healthy growth was driven by higher sales and lower impact from currency devaluation after partial debt repayment,” the company said.
Despite rising selling and distribution expenses — up 17% as the company expanded its sales network — Walton’s net operating cash flow per share jumped nearly fourfold to Tk 14.79, from Tk 3.92 a year earlier. The improvement was attributed to stronger collections and more efficient supplier payments.
The management expressed confidence in maintaining momentum, citing a more stable forex market and strong operational efficiency as key factors for continued profitability.
Market dominance and expansion
Walton remains the market leader in Bangladesh’s electrical and electronics sector, commanding about 75% of the refrigerator market and nearly 50% of television sales. The company also manufactures air conditioners, freezers, compressors, and elevators, with exports now reaching over 50 countries.
Having launched its first compressor plant in 2017, Walton has steadily grown its international presence, positioning itself as a rising global player in home appliances.
Annual performance and dividends
For FY25, Walton’s profit fell 23% year-on-year to Tk 10.37 billion, mainly due to weak consumer demand amid inflation and the student-led political unrest in mid-2024. Revenue dropped 5.7% to Tk 70.82 billion.
Reflecting the softer annual performance, Walton declared a 175% cash dividend and 10% stock dividend for FY25 — lower than the 350% cash payout of the previous year.
On Wednesday, Walton’s stock closed at Tk 363.50, down 0.11% from the previous day.
Analysts say the company’s sharp rebound in Q1 signals renewed investor confidence, as leaner financing and rising domestic demand set the stage for stronger earnings in the quarters ahead.
