Housing Development Corporation (HDC) recorded a sharp turnaround in its financial performance in the first quarter of 2025, posting a net profit of MVR 268.49 million after reporting a loss of MVR 80.48 million in the fourth quarter of 2024.

According to the quarterly financial statements of state-owned companies released by the Privatization and Corporatization Board (PCB), HDC generated revenue of MVR 432.42 million during the first quarter of this year.

Property sales accounted for the largest share of the company’s income, contributing MVR 268.57 million, while rental income totalled MVR 163.85 million.

In the fourth quarter of 2024, HDC recorded revenue of MVR 468.85 million and a gross profit of MVR 403.19 million. However, operating expenses during that period amounted to MVR 433.92 million, resulting in a quarterly loss. Corporate social responsibility (CSR) expenses accounted for MVR 0.19 million of the total.

A significant reduction in operating costs in the first quarter of 2025 drove the company’s return to profitability. Operating expenses, including CSR spending, declined to MVR 206.37 million, representing a 52.4 per cent decrease compared to the previous quarter.

As a result of these cost reductions, HDC recorded a net profit of MVR 268.49 million for the quarter, reflecting improved operational efficiency and stronger financial discipline.

The PCB report shows that HDC’s short-term financial obligations stood at MVR 6.21 billion at the end of the first quarter, while total loans and borrowings amounted to MVR 9.30 billion. The company’s total assets were valued at MVR 43.28 billion, with equity standing at MVR 28.56 billion.

The improved first-quarter performance signals progress in strengthening HDC’s financial position as part of the Government’s efforts to improve the sustainability of State-Owned Enterprises (SOEs).