Walton Hi-Tech Industries PLC said its profit rose in the second quarter of the fiscal year 2024-25 as it adjusted sales prices to align with higher costs.

The company reported a profit of Tk 155.43 crore in the October-December quarter, reflecting a 12 percent year-on-year growth.

Shares of Walton declined by 0.73 percent to Tk 500 as of mid-day trading yesterday on the Dhaka Stock Exchange.

Earnings per share (EPS) stood at Tk 5.13 for October-December 2024, up from Tk 4.56 in the same period a year earlier, according to its financial statements.

However, for the first half of the fiscal year, EPS dropped to Tk 10.05 from Tk 11.24 recorded in the corresponding period of the previous year.

For the half-year period ended December 31, 2024, Walton reported a net profit after tax of Tk 304.47 crore, down from Tk 340.35 crore in the previous year.

Walton attributed the decline in earnings for the half-year period to global economic challenges, including the aftermath of the pandemic, disruptions caused by the Russia-Ukraine conflict, and inflationary pressures.

The company highlighted rising raw material costs, a vulnerable global market, and currency devaluation as key factors affecting its financial performance, according to a price-sensitive disclosure.

Despite these hurdles, Walton achieved 7.51 percent growth in net revenue by adjusting sales prices to offset increased costs.

The company also noted an increase in VAT on its refrigerators and air conditioners this fiscal year, which impacted operating costs.

Net Operating Cash Flows Per Share (NOCFPS) also declined significantly, standing at Tk 6.93 for the period, compared to Tk 27.16 in the same period of 2023.

Walton explained that the reduction was primarily due to increased payments to suppliers based on collections from customers, instead of relying on bank borrowings.

Additionally, higher material purchases and payments to the government exchequer were made to prepare for the upcoming peak seasons.

"These strategic cash flow adjustments demonstrate our commitment to fostering long-term growth and maintaining a robust operational foundation," the company said.