Accounting experts are monitoring whether the posted sales growth is genuine or a manipulative attempt to depict a rosy picture before the IPO
Walton Hi-Tech Industries Ltd posted record revenue riding on massive 16,909 percent growth in its television sales in the first half of the 2019-20 financial year.
The company posted significant growth in the 2018-19 financial year and extended the trend into the following year.
According to the company's unaudited financial statements, Walton posted 39 percent revenue growth to reach Tk2,610.55 crore in the first half of the 2019-20 financial year. Of the amount, refrigerator sales contributed 77 percent and television sales added the rest.
Meanwhile, accounting experts are monitoring whether the posted sales growth is genuine or a manipulative attempt to depict a rosy picture before the initial public offering (IPO).
The company posted 57 percent growth in net profit to stand at Tk616.28 crore. Its earnings per share was Tk20.54 in the first half of the last financial year.
In the 2018-19 financial year, Walton suddenly experienced 89 percent growth in revenue bringing it to Tk5,177.32 crore.
The company posted record earnings per share of Tk45.87 in the 2018-19 financial year, while its weighted average EPS for the last five years was above Tk28.
"Walton group usually produces electronics and home appliances under various entities but from last year, the receipts of all electronics and home appliances–except mobile phone sets– have been maintained by Walton Hi-Tech Industries," said Partha Protim Das, its company secretary.
"That is why Walton's sales enjoyed sharp growth during that period," he added.
However, the company secretary mentioned that the electronics and home appliances manufacturers are passing idle time during the pandemic as customers are not willing to visit their outlets. This has also been reflected in its sales.
Partha Protim also said that the sales will increase ahead of Eid-Ul- Azha, as the company already enjoyed a good response on its digital platform.
Meanwhile, Walton has announced the dates for the subscription of its IPO. Investors can submit their applications to buy the shares of the company between August 9 to August 16 in this year.
Earlier, the regulator approved the sale of the primary shares of Walton Hi-Tech Industries at a 20 percent discount to general investors through IPO.
The cut-off price for the shares has been determined at Tk315 through electronic bidding by the book building method.
Qualified and institutional investors will buy 1.38 million shares of the company at the cut-off price. And the individual investors will be able to purchase 1.55 million shares at Tk252 per share, after a 20 percent discount from the cut-off price.
The company will raise the capital of Tk100 crore through the IPO. It will use the proceeds to expand its businesses, repay bank loans and meet IPO costs.
Walton has a paid-up capital of Tk300 crore.
Founded in 1977, Walton Hi-Tech Industries began manufacturing refrigerators, freezers, air-conditioners, and compressors in early 2008.
The company then branched out into making televisions, as well as home and electrical appliances. It now has a workforce of more than 20,000 people, at 22 production bases on 764 acres of factory grounds.