MTCC announces a profit of MVR 63 million for Q2

MTCC's Managing Director Adam Azim. (Sun Photo/Fayaz Moosa)

Maldives Transport and Contracting Company (MTCC) generated a net profit of MVR 63 million in the second quarter of the year.

The quarterly report released by MTCC shows the MVR 63 million in net profit in Q2 this year is four times higher than the net profit the company generated in Q2 last year, when it netted MVR 15 million.

Road development project in progress in B. Eydhafushi. (Photo/MTCC)

MTCC also doubled their revenue compared to last year.

The company generated MVR 248 million in total revenue in Q2 last year, and MVR 423 million in total revenue in Q2 this year.

In face of the COVID-19 pandemic in 2020, MTCC implemented several key changes to its operations to reduce its operational costs, which allowed it to run at a profit throughout the year, despite the long lockdown.

The company continued to make progress, and delivered consistent strong results in both revenue and profits again in Q2 this year.

MTCC generates its revenue primarily from contracting, dredging and trading.

MTCC begins work on land reclamation and coastal protection project in K. Guraidhoo on August 23, 2020. (Photo/MTCC)

While MTCC showed a strong performance overall, it also faced a decline in revenue from trading and transport segments due to COVID-19 restrictions.

MTCC said global travel restrictions caused delays in receiving shipments from suppliers, adversely affected the timely delivery of products to customers. This results in a 34 percent drop in revenue and 77 percent drop in profit in the trading segment when compared to Q1.

Meanwhile, domestic travel restrictions also reduced passenger movements, and resulted in a 24 percent drop in revenue in the transport segment.