Walton Hi-Tech Industries PLC, the leading electrical and electronics manufacturer in Bangladesh has published its financial report for the period Jul 21-Mar’22. Revenue of the company increased by 24.9% YoY from Tk 42,918.4 Mn in 9M’20-21 to Tk 53,606.1 Mn in 9M’21-22. However, profit after tax decreased by 20.7% YoY from Tk 10,336.1 Mn in 9M’20-21 to Tk 8,199.3 Mn in 9M’21-22.
Revenue of the company increased by 24.9% YoY even though July and the first week of August were in strict lockdown due to Covid-19. This is mainly due to the rise of consumer spending in 2021 as the mass vaccination program has allowed normalcy of business activities. Domestic sales increased by 22.7% YoY from Tk 42,215.6 Mn in 9M’20-21 to Tk 51,803.8 Mn in 9M’21-22.
Export which is now the focus of the company increased by a staggering 156.5% YoY from Tk 702.8 Mn in 9M’20-21 to Tk 1,802.3 Mn in 9M’21-22. Revenue contribution from export has increased to 3.6% of the total revenue in 9M’21-22 compared to only 1.6% in the same period last year.
Gross profit decreased by 2.5% YoY mainly due to a decline in gross profit margin. The gross profit margin was 30.7% in 9M’21-22 which was 39.4% in 9M’20-21. Due to the price hike of inventories in the international market, the cost of goods sold and the cost of inventories increased significantly in the comparative period. Hence the gross margin has declined by 8.6%.
Profit after tax decreased by 20,7% mainly due to lower gross profit margin and higher operating expenses. Selling & Distribution expenses increased by 63.9% YoY from Tk 3,318.3 Mn in 9M’20-21 to Tk 5,438.2 Mn in 9M’21-22.
Walton is continuing to perform well in terms of sales growth despite the pandemic challenges. The gross profit decreased as the company didn’t pass on the rising raw materials price to the customers. As the global inflation hike is a new concern, the gross profit might not recover quickly. But the sales growth clearly shows customers’ willingness to buy consumer durables from Walton even in these challenging times.
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