The revenues of state-owned companies increased by 7 per cent in the second quarter of 2024 compared to the same period last year, according to data released by the Privatisation and Corporatisation Board (PCB).

State-owned companies reported a total revenue of MVR 11.65 billion in Q2 2024, up from MVR 10.90 billion in Q2 2023. However, despite this revenue growth, overall profitability declined. Net profit for the quarter stood at MVR 1.32 billion, a 4 per cent decrease from the MVR 1.38 billion reported in the second quarter of 2023.

The value of assets held by state-owned enterprises increased to MVR 189.51 billion, reflecting a 12 per cent year-on-year rise. However, borrowings and loans surged by 64 per cent, reaching MVR 53.64 billion in Q2 2024 compared to the previous year.

Government financial assistance to state-owned enterprises also saw a rise. By the end of Q2 2024, the Government had provided MVR 1.5 billion in financial support, including subsidies, capital injections, and grants. This represents a 24 per cent increase from the MVR 1.3 billion disbursed in the same period of 2023.

While revenues continue to grow, the increase in borrowing and the decline in profitability highlight financial challenges faced by state-owned enterprises.