Walton’s profit falls

Walton has experienced a fall in profits in the January-March quarter of 2022 due to the crisis of raw material and higher shipping charges globally.

Its earnings per share (EPS) dropped to Tk 12.34 in the third quarter of 2021-22 which was Tk 12.92 in the same period of the previous fiscal year.

In the nine months from July 2021 to March 2022, the EPS of the local electronics, electric and home appliance maker dropped around 21 per cent to Tk 27.07 which was Tk 34.26 in the same period of the previous year.

However, the board of directors of Walton today approved the quarterly financial statements at a board meeting.

The profit fell in the third quarter as the global raw material market faces a challenging period and their prices rose, said Md Rafiqul Islam, company secretary of Walton Hi-tech Industries.

"Shipping costs also increased in the recent months so our costs rose whereas finished goods prices were not increased until last January," Islam said.

Walton already raised the prices of finished goods so the profit falling pace was slowed down in the third quarter and the impact of rising the prices of the products would be seen in the coming quarters, he added.

In the same board meeting, Walton decided to buy land of 588 decimals at a cost of Tk 44 crore and excluding registration costs. The land would be used for expansion of the company.