MTCC posts record revenue, high costs weigh on profit

Maldives Transport and Contracting Company (MTCC) posted a net profit of MVR 40.5 million for the third quarter of the year.

According to the company's financial data, this was the highest earning quarter of the year, but also at the highest operating cost and as a result, the lowest net profit.

The company's third-quarter financial statistics show that the total revenue for the quarter was almost the same as the second quarter revenue.

While there has always been an improvement in revenue from some segments of the business, some have seen a decline in their earnings due to various reasons.

MTCC revenue stats:

Revenue from construction and dredging and transport segments increased compared to the second quarter.

However, revenue from the trading part declined in the last quarter, with MTCC saying that was due to the high number of holidays in July.

The cost of sales increased significantly in the last quarter as compared to the revenue generated by MTCC on average. 

Here are some of the factors that the company cited as reasons for the cost escalation:

Cost of sales of MTCC:

While MTCC had cut down on its administrative and marketing expenses in the third quarter compared to the second quarter, profits declined due to increased cost of sales and finance costs. 

Net profit:

A total of 112 projects were executed by MTCC in the last quarter. Eight of these projects have been completed and work on 11 completely new projects has already begun. The company received 11 more projects in the last quarter.