The Maldives Transport and Contracting Company (MTCC) profits have suffered for 2016 after cuts on the government subsidy provided for transportation.
MTCC recorded a net profit of MVR104.8 million last year, which is 32 percent lower than the figure in 2015.
Statistics revealed by MTCC for the fourth quarter, show that the company made MVR104.8 million after taxes in 2016. This is MVR51.6 million less than the profits recorded at MVR156.4 million in 2015.
The report by the company shows that the main reason for the decrease in profits was the cut in the subsidy provided by the government, and the company suffered MVR32 million as a result of the subsidy cut .
While profits had decreased, the revenue generated by the company last year had increased by 35% percent in comparison to 2015. The company had generated MVR1.2 billion in profits, with cuts on cost of sales.
However, certain expenditures had increased, and the company had lowered its unpaid loans bringing the liquidity ratio to 1.40.
The company had invested MVR34 million towards the start of the year as capital, and paid off MVR12.5 million of loans in the final quarter of the year.
Out of the 65 projects started by the company in 2016, the company had successfully completed six projects, with the remaining projects also ongoing according to schedule. The company had paid MVR18.5 million as business profit tax in 2016.
