Walton Hi-Tech Industries posted a remarkable 130 per cent year-on-year growth in profit to Tk 1.38 billion in the second quarter through December of FY24, as the devaluation of the taka against the dollar slowed down.
In the six months to the end of last year, its profit jumped 22 times year-on-year to Tk 3.40 billion as the finance cost fell 62 per cent to Tk 1.78 billion during the period, according to a disclosure on the company website.
The sales revenue, however, dropped more than 8 per cent year-on-year to Tk 23.68 billion in the six months through December 2023.
Walton managed to offset some of the costs by adjusting sales prices, which resulted in a comparatively higher profit in the second quarter of FY24.
Walton's annual profit had declined 36 per cent year-on-year to Tk 7.83 billion in FY23, which was the lowest in three years since its listing in 2020.
The decline in profit happened because of the dollar gaining strength against the taka and runaway inflation coupled with costlier raw materials.
Despite the sluggish business, the company declared 300 per cent cash dividends for FY23 for general shareholders, the highest since the 2020 listing, while 90 per cent cash dividends for sponsor-directors.
Stock performance
Walton's stock was stuck at the floor price of Tk 1047.7 for more than 16 months until Thursday last week before the floor price removal.
The stock endured an erosion of Tk 139 per share in the last two days.
As a result, Walton saw its market value wiped out by Tk 42 billion in the past two trading days, sliding down to the third position on Monday in terms of market cap from the second.
Sponsor's share sale
Walton's sponsor director SM Ashraful Alam sold more than 300,000 shares last year in four phases in the secondary market at the prevailing market price.
He also sold 425,000 shares in 2021, worth more than Tk 445 million to increase free float shares as per the directives from the securities regulator.
Free float shares are available for public trading.
Currently, Walton's free float shares on the DSE are less than 1.50 per cent of its outstanding shares.
In May 2023, the Bangladesh Securities and Exchange Commission (BSEC) gave Walton's sponsors and directors three years' time to ensure that at least 10 per cent of its shares are free float.
In 2020, Walton raised Tk 1 billion by issuing less than 1 per cent shares of the company.
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