The rapid appreciation of the dollar against the taka has resulted in losses to Walton Hi-Tech Industries – the country's electronics and technology giant – for the first time in its history.

Walton lost Tk46 crore in the first quarter of the fiscal 2022–2023, and its earnings per share decreased to Tk1.52 from Tk280.98 crore in profit and Tk9.28 crore in growth during the same period the previous year.

The dollar exchange rate was Tk84.82 in July 2021, but it began to climb in May of this year.

The open market price in May exceeded Tk100. The dollar increased in value by 27% from the previous year.

Due to this, Walton's expenses increased seven times faster than they did during the same time last year, to Tk322.42 crore in July-September of FY23. Despite generating an operating profit of Tk275.72 crore, the company recorded a loss, according to a company source.

Operating earnings for the company in the most recent fiscal year was Tk322.58 crore, while costs came to Tk36.76 crore.

According to Golam Murshed, 

managing director and CEO of Walton Hi-Tech Industries, the cost of letter of credit (LC) settlement has increased due to the increase in dollar value, and the loss is the result of the additional cost.

As an illustration, he stated, "For the quarter of July to September, we completed an LC for the import of raw materials at a rate of Tk98 per dollar. However, in the settlement, a dollar was worth 102 taka. These variations have raised our expenses."

The majority of these costs, according to Howlader, are still unrealized but were calculated as realised in order to lessen the effect of currency volatility in the next quarter.

Singer Bangladesh, a multinational and the company's main competition, reported a loss of Tk8.50 crore for the three months ending in September.

Currently, the electrical issue has also disrupted Walton's manufacturing, raising prices for the company even more, according to officials.

The Bangladesh Bureau of Statistics reports that the current inflation rate, which was 9% in September, has also impacted people's purchasing power and reduced their ability to consume.

This has led to declining sales for Walton, which are 14% lower than they were during the same time last year.

People are purchasing fewer electronic products than in the past, according to Abul Bashar Howlader, additional managing director of Walton, and profits have also been negatively impacted by high raw material prices.

Meanwhile,

 Singer experienced a 13% increase in revenue over the same period last year.

In this regard, a firm source claimed that because the company had extended its instalment capacity, the impact of inflation on sales was lessened.

In 2008, while these industries were still reliant on imports, Walton joined the electronics and home appliance markets.

Walton currently holds a market share of more than 72% in the refrigerator industry.

The corporation is also performing well in the markets for televisions, air conditioners, ceiling fans, LED lighting, and home appliances.

In addition to exporting numerous electrical goods to European, Asian, and African nations, Walton started exporting refrigerators in 2011. These exports also include mobile phones, compressors, and televisions.

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