Walton’s Q2 earnings slide

Walton Hi-Tech Industries saw its profits decline in the October-December quarter (Q2) of the current fiscal year, hit by lower sales amid high inflationary pressure.

Despite the setback, Walton posted growth in the first half (H1) of the fiscal year, driven by strong first-quarter sales.

The electronics and electrical products maker posted an 8 percent fall in profits to Tk 155 crore in the second quarter, while sales dipped 1.5 percent to Tk 1,311 crore, according to the company’s financial report.

A senior official at a leading investment bank said inflation typically affects sales of luxury or deferrable products.

He added that Walton’s offerings fall into this category, and its customers are highly sensitive to price changes, which explains the decline in sales.

Inflation rose to 8.49 percent in December from 8.29 percent in November and 8.17 percent in October, according to Bangladesh Bureau of Statistics data.

Meanwhile, the company’s profit in the first six months of the fiscal year rose 1.7 percent to Tk 363 crore, while revenue increased 8 percent to Tk 2,762 crore. 

In a disclosure published yesterday at the Dhaka Stock Exchange, Walton attributed the improvement to higher sales revenue, a relatively stable foreign exchange rate, and optimised inventory procurement.

Earnings per share (EPS) increased to Tk 10.90 for the period ended 31 December 2025, up from Tk 9.14 a year earlier.

Walton’s stock rose slightly to Tk 385 yesterday. The company provided a 175 percent cash dividend last year, down from 350 percent the previous year.