Walton profit gets a lift from lower interest costs

Walton Hi-Tech Industries PLC, a leading listed manufacturer of electrical and electronic products, posted higher profits in the last fiscal year, mainly because of a sharp fall in bank interest expenses.

The company has also recommended a higher cash dividend for shareholders.

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It reported a net profit of Tk 1,124 crore for fiscal year 2025-26 (FY26), up 8.5 percent from Tk 1,036.62 crore a year earlier. Its earnings per share (EPS) increased to Tk 33.75 from Tk 31.11.

Walton said the increase in EPS was mainly driven by a sharp reduction in bank interest expenses, or finance costs. Finance costs fell by Tk 267.26 crore, or around 60 percent, during the year.

The company’s loan burden also declined as its cash flow improved and it repaid high-cost debts, said Md Rafiqul Islam, company secretary of Walton.

With higher profits and stronger cash flow, Walton’s board recommended a 180 percent cash dividend and a 10 percent stock dividend for the financial year ended June 30, 2026

“This helped reduce finance costs,” he said.

The improvement in operating cash flow was mainly supported by higher collections from customers and lower payments to suppliers. Customer collections increased by Tk 694.36 crore, or 8.84 percent, in FY26, while payments to suppliers fell by 2.31 percent.

Sales also grew 4.5 percent to Tk 7,404 crore during the year.

With higher profits and stronger cash flow, Walton’s board recommended a 180 percent cash dividend and a 10 percent stock dividend for the financial year ended June 30, 2026.

The board proposed the stock dividend to help finance the company’s ongoing green energy capacity expansion under its balancing, modernisation, rehabilitation and expansion (BMRE) programme.

Walton said the stock dividend would help ensure an uninterrupted power supply while supporting its capacity expansion. The shares will be issued entirely from retained earnings.

The company will hold its annual general meeting on October 15 around noon through a digital platform. The record date has been set for September 20.

Meanwhile, Walton’s net operating cash flow per share (NOCFPS) rose nearly 20.4 percent to Tk 63.72 from Tk 52.91 a year earlier.

Following the dividend announcement, the company’s share price rose 1.5 percent to Tk 399 yesterday.

For the previous financial year, Walton paid a 175 percent cash dividend and a 10 percent stock dividend to its shareholders.