Waves Home Appliances Posts Higher Profit Despite Rising Finance Costs

Waves Home Appliances Limited, formerly known as Samin Textiles Limited, has reported a modest improvement in profitability for the six months ended June 30, 2026, with the company’s profit after tax rising to Rs161.02 million, compared with Rs156.03 million in the corresponding period of 2025.

According to the financial results approved by the company’s Board of Directors on August 28, 2026, earnings per share increased to Rs0.60, from Rs0.58 a year earlier. The company did not announce any cash dividend, bonus shares or rights issue for the period.

Sales show modest growth

Waves Home Appliances recorded net sales of Rs2.034 billion during the six-month period, slightly higher than Rs2.004 billion in the same period last year.

However, the company’s gross profit declined to Rs512.70 million, from Rs544.27 million, reflecting pressure on margins despite the increase in sales.

The company’s operating performance remained positive. Profit from operations rose to Rs599.49 million, compared with Rs523.25 million in the corresponding period of 2025. A significant contribution came from other income, which increased to approximately Rs400.93 million, compared with Rs270.33 million last year.

Higher finance costs remain a challenge

The improvement in operating profit was partly offset by a sharp increase in finance costs. Finance costs reached Rs469.90 million during the six months, compared with Rs320.63 million in the same period last year.

Profit before tax stood at Rs104.17 million, down from Rs166.54 million a year earlier. However, a tax income/benefit of Rs56.85 million, compared with an income tax expense of Rs10.51 million last year, helped lift the final profit to Rs161.02 million.

Stronger operating cash flow

The company also reported an improvement in cash generation from operations. Net cash generated from operating activities stood at Rs141.73 million, compared with Rs107.52 million during the same period of 2025.

Investing activities consumed Rs9.66 million, mainly reflecting additions to property, plant and equipment. Meanwhile, financing activities resulted in a net cash outflow of Rs142.89 million, primarily due to long-term loan repayments and a Rs207.40 million repayment of sponsor loans.

As a result, cash and bank balances stood at Rs7.15 million at June 30, 2026, compared with Rs18.52 million at the end of June 2025. The cash-flow statement is presented on page 6 of the company’s financial filing.

No dividend announced

Despite reporting higher half-year earnings, Waves Home Appliances did not declare a cash dividend or any bonus or rights entitlement for the period.

The company’s total comprehensive income for the six months also stood at Rs161.02 million, as no other comprehensive income was recorded during the period.

Overall, the results show modest sales growth and improved operating performance, although higher finance costs and weaker gross margins remain key areas to watch. The rise in operating cash generation provides a positive element, while the decline in closing cash balances highlights the company’s ongoing financing and liquidity requirements.