STELCO records MVR 239 million in net profit for the past year: Audit Report
STELCO’s audit report reveals a 30 percent increase in profits last year alongside a reduction in overall debt; however, the company faces significant cash flow challenges due to more than MVR 949 million in outstanding receivables from various government agencies. The report highlights that mounting unpaid dues from institutions such as the Ministry of Finance and PSM pose a serious threat to the company’s long-term financial sustainability.
STELCO building. | stelco
The Auditor General's Office has revealed that State Electric Company Limited (STELCO) recorded a net profit of MVR 238.7 million over the past year.
According to the annual audit report of STELCO released by the Auditor General’s Office on June 28, the company has recorded significant growth compared to previous years. While the utility provider faced a loss of MVR 172 million in 2023, it successfully rebounded in 2024 to post a profit of MVR 181 million. Furthermore, financial figures from the past year indicate that the company's profit margin has increased by 30 percent.
According to the audit report, the primary reason for STELCO’s substantial profit was a significant reduction in the company’s debt. However, the report noted that despite the growth in revenue, the company faces major challenges in managing cash flow due to prolonged delays in receiving outstanding payments from government agencies.
Statistics reveal that the outstanding debt owed to STELCO by government agencies and state-owned enterprises has surged to MVR 949 million. This represents a 20 percent increase compared to the previous year. A total of 19 state institutions have failed to settle their dues with STELCO, with the Ministry of Finance holding the largest outstanding balance. The Ministry alone owes more than MVR 333 million to the utility provider.
The state broadcaster, Public Service Media (PSM), holds the next largest debt. According to the report, PSM owes STELCO MVR 163 million, while the Housing Development Corporation (HDC) and the Ministry of Housing owe MVR 33 million and MVR 43 million, respectively. Furthermore, the audit revealed that the state-owned water utility, MWSC, also owes STELCO MVR 24 million.
Despite the company's significant financial growth, financial experts highlight that the substantial outstanding payments due from state institutions pose a major threat to its long-term financial sustainability and stability.
