Despite a decline in revenue compared to the previous year, the Housing Development Corporation (HDC), one of the state’s largest enterprises, recorded a profit of MVR 2 billion in 2024, according to its latest audit report.
The 2024 financial statements audited by the Auditor General’s Office reveal that HDC generated MVR 3.5 billion in revenue for the year. This represents a decrease of MVR 2.9 billion compared to the preceding year.
The decline in revenue is due to a downturn in the company’s core income stream: the sale of land and housing units. Revenue from these sales fell from MVR 5.8 billion to MVR 2.8 billion. However, rental income saw an upward trend during the same period, increasing from MVR 578 million to MVR 670 million.
In addition to its operating revenue, HDC recorded MVR 1.8 billion as "other income." This increase followed a board decision to reclassify several non-revenue-generating plots—including the site designated for the cricket stadium—as investment properties. The valuation of these newly classified revenue-potential assets amounted to MVR 1.3 billion.
HDC also saw an improvement in financing income in 2024 compared to the previous year. A major portion of this income was derived from interest on loans and receivables.
With the inclusion of MVR 728 million from these sources, total financing income exceeded MVR 1 billion. After deducting MVR 747 million for interest payments on loans, bank financing facilities, and lease liabilities, HDC retained a net finance income of MVR 323 million.
Regarding expenditures, the company’s largest costs were related to its direct business operations, totaling MVR 2.5 billion. Administrative expenses amounted to MVR 710 million, of which MVR 500 million was spent on staff costs. Additionally, MVR 214 million was allocated to maintenance, while marketing and promotional activities accounted for MVR 21 million.
While HDC remains profitable, the volume of outstanding loans and receivables remains a big concern. The audit report indicates that by the end of 2024, these receivables stood at MVR 12.1 billion, an increase of MVR 2 billion from the previous year.
Despite the rise in receivables, HDC managed to reduce its total debt obligations, which fell from MVR 10.2 billion to MVR 9.4 billion.
