Maldives Transport and Contracting Company (MTCC) has reported an annual total revenue of MVR 3.2 billion for 2023, as per annual report.
Its revenue for last year is a notable increment compared to the year before during which gross revenue had reached MVR 2.47 billion.
Last year, MTCC reported a gross profit of MVR 217 million, observed after a deduction of MVR 2.98 billion in Cost of Sales.
With the inclusion of MVR 513 million in ‘Other Income’, but after subsequent deductions in administrative, sales and marketing expenses, and impairment on financial loss/contract assets, MTCC reported an operating profit of MVR 277 million.
While the company, now most notably known for its construction and dredging activities, reported a profit before tax of MVR 115 million, its profit after tax for the last fiscal year reached MVR 97 million.
Despite observing a growth in revenue last year compared to 2022; all other profit categories saw a decline. As such, gross profit had come down to MVR 217 million from MVR 292 million in 2022, with operating profit dropping from MVR 324 million in 2022 – 14% decline.
Profit after tax for 2023 saw a 49.7% drop compared to 2022, while profit after tax (net profit) saw a 50.4% decline last year compared to the year before.
Performances and Developments of Business Activities
According to its 2023 annual report, last year’s revenue is a 30% increment compared to the year before, which was mainly the result of construction and dredging segment’s robust performance, and the increased number of construction projects undertaken throughout last year.
Besides construction and dredging segment, MTCC’s trading segment stand out the company’s primary revenue generators. MTCC also reports that the bulk of the company’s profits in 2023, predominantly stemmed from these two segments.
Construction and Dredging
MTCC reports the positive performance of the segment can be attributed to new projects undertaken and the accelerated progress of projects in general, particularly in reclamation projects – facilitated by the charter hire of a dredger during 2023.
The company also restructured this segment for improved efficiency and synergy as part of an organizational overhaul. The segment was divided into three divisions; Construction Projects Division, Dredging Projects Division, and Construction Support Division – a decision aimed at streamlining operations and enhanced collaborations across the divisions.
MTCC further reports the successful completion of 31 projects in 2023 as well.
Trading
In 2023, MTCC introduced several new products to its portfolio, this included the introduction of Yanmar boats to the Maldives in collaboration with Yanmar Marine International Asia Co. Ltd, and the introduction of Castoldi Waterjets from Italy.
Besides this, MTCC unveiled the Yanmar 12AYM-WST (1400HP) engine, officially exhibited at the Maldives Marine Expo 2023 in March – and holds the distinction of ‘being the highest horsepower engine for a single engine’ introduced in the Maldives.
MTCC also conducted numerous sales promotion trips across Maldives aimed at showcasing the diverse range of products within the company’s portfolio.
Company Diversity
Out of the 4,507 employees at MTCC as of December 31 last year, 91% are male while 9% are female. Moreover, the company observed an 11.5% year-on-year increment in staff strength due to new recruitments.
From the total employees, 47.1% are Maldivians, 28.2% of the staff are Indian, while 18.9% of the employees are Bangladeshi. The number of Maldivians employed at the company also increased by 28% from 1,680 by 2021 end to 2,150 by 2022 end.