Maldives Transport and Contracting Company (MTCC) has reported a steep drop in profitability for 2024, raising concerns about the company’s financial trajectory despite its continued involvement in infrastructure and transport projects across the country.
Financial Performance: Revenue Down, Profits Halved
MTCC’s financial results for in its Annual Report 2024, published yesterday, paint a concerning picture. The company generated MVR 2.15 billion in revenue—a significant decline from the MVR 3.2 billion posted in 2023. Even more alarming is the fall in net profit after tax, which plummeted to MVR 45.2 million, down from MVR 97 million the previous year. This 44% year-on-year decline in profitability indicates growing operational strain.
The downturn is attributed to reduced income from the construction and dredging sectors—traditionally strong revenue generators for MTCC—as well as mounting operational costs. In fact, the company had already seen a 14% drop in operating profit in 2023 compared to 2022, suggesting a continuing erosion of profit margins.
Operational Overload: 182 Projects, But at What Cost?
MTCC carried 182 projects into 2025, yet the volume of work hasn’t translated into financial strength. The majority—72 harbour projects and 33 shore protection works—reflect the company’s expansive commitments. However, the declining profit signals inefficiencies or cost overruns in execution, raising questions about the company’s capacity to manage such a large project load effectively.
Additional projects include 32 reclamation initiatives, 12 building developments, six airport and road projects each, along with bridge constructions, consultancies, and miscellaneous services. While this extensive portfolio highlights MTCC’s strategic importance, the mismatch between project volume and financial return cannot be overlooked.
Transport and Logistics: Stable but Unremarkable
MTCC continued its work on the Raajje Transport Link (RTL), aiming to improve inter-island connectivity. Despite modest gains and stable ridership in bus and ferry services, there were no standout achievements reported in this segment to offset the company’s overall underperformance.
Future Outlook: Aspirations vs. Financial Reality
MTCC’s plans to diversify services and improve operational efficiency come at a time when its financial health is under pressure. While the company maintains its commitment to national infrastructure development, its sharp drop in revenue and profits casts doubt on whether these ambitions are realistic without major strategic recalibration.
While MTCC remains a key player in Maldivian infrastructure, its 2024 financial performance highlights serious challenges. Declining profitability, underwhelming returns on a large project portfolio, and cost inefficiencies suggest that without significant course correction, the company risks further fiscal strain in the years ahead.
