Walton Hi-Tech Industries Limited, the leading electrical and electronics manufacturer of Bangladesh has recently published its H1 financial report of FY 2021-22. Revenue of the company increased by 18.3% YoY from Tk 26,645.1 Mn in H1’20-21 to Tk 31,525.1 Mn in H1’21-22. However, profit after tax decreased by 31.0% YoY from Tk 6,463.4 Mn in H1’20-21 to Tk 4,461.4 Mn in H1’21-22.
Revenue
Revenue of the company increased by 18.3% YoY even though July and first week of August was in strict lockdown due to Covid-19. This is mainly due to the rise of consumer spending in 2021 as mass vaccination program has allowed normalcy of business activities. Domestic sales increased by 14.9% YoY from Tk 26,355.0 Mn in H1’20-21 to Tk 30,294.6 Mn in H1’21-22. Export which is now the focus of the company increased by a staggering 324.2% YoY from Tk 290.1 Mn in H1’20-21 to Tk 1,230.5 Mn in H1’21-22. Revenue contribution from export has increased to 3.9% of the total revenue in H1’21-22 compared to only 1.1% in same period last year.
Gross Profit
Gross profit decreased by 11.0% YoY mainly due to decline in gross profit margin. Gross profit margin was 30.5% in H1’21-22 which was 40.5% in H1’20-21. Due to price hike of inventories in international market, cost of good sold and cost of inventories increased significantly than comparative period. Hence the gross margin has declined by 10.0%.
Profit
Profit after tax decreased by 31.0% mainly due to lower gross profit margin and higher operating expenses. Selling & Distribution expenses increased by 54.4% YoY from Tk 2,239.3 Mn in H1’20-21 to Tk 3,458.3 Mn in H1’21-22.
Future Ahead
Walton is continuing to perform well in terms of sales growth despite the pandemic challenges. Gross margin recovery might not take place in the coming quarters as omicron variant will again disrupt the global supply chain. Local sales is likely to be impacted if government impose another lockdown to curb the infection rate.
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