The State Trading Corporation of Bhutan Limited (STCBL) reported a sharp increase in revenue and profits for the first half of 2025, buoyed by higher trading volumes and improved cost management.
According to its abridged unaudited financial statements, STCB’s total income rose 59.4% year-on-year to Nu 4.14 billion, compared to Nu 2.60 billion in the same period last year. This surge was largely driven by a strong performance in its core trading operations, with revenue from operations climbing to Nu 4.13 billion, up from Nu 2.56 billion a year earlier.
The company’s profitability saw a significant turnaround with profit before tax (PBT) standing at Nu 108.89 million, a more than six-fold increase from Nu 16.80 million in June 2024.
After accounting for tax expenses of Nu 32.67 million, profit after tax (PAT) surged to Nu 76.22 million, compared to just Nu 11.76 million in the prior-year period.
The improved earnings reflect stronger revenue growth coupled with disciplined cost management, even as purchases of stock-in-trade increased in line with higher sales volumes.
Similarly, STCB’s balance sheet also expanded. Total assets rose to Nu 1.92 billion, up 27.8% from Nu 1.50 billion a year earlier. Growth was led by an increase in current assets, which climbed to Nu 1.22 billion from Nu 819.74 million in June 2024.
Equity and reserves improved to Nu 707.39 million, up from Nu 647.94 million.
On the liabilities side, current liabilities rose sharply to Nu 1.05 billion from Nu 680.07 million, reflecting higher trade and operating activity.
On the expenditure part, operating costs grew in tandem with revenues, but at a slower pace.
Purchases of stock-in-trade increased to Nu 3.83 billion from Nu 2.45 billion, while employee benefit expenses rose modestly to Nu 81.70 million (Nu 70.73 million in 2024).
Depreciation expenses also rose, reflecting investments in non-current assets. Finance costs climbed to Nu 30.91 million (Nu 20.16 million in 2024), indicating higher borrowings to support working capital.
Experts noted that the strong first-half performance underscores STCB’s position as a key trading enterprise in Bhutan, benefiting from robust domestic demand and an expanded product portfolio.
“However, the rise in current liabilities and finance costs signals the need for careful balance sheet management going forward,” said a financial consultant from Thimphu.
The consultant reiterated that if sustained, the current trajectory positions STCB for one of its strongest financial years in recent history, with higher profits providing scope for reinvestment and potential dividend payouts.
STCBL is one of Bhutan’s oldest and most diversified state-owned enterprises, with operations spanning multiple sectors of the economy. Established in 1968/1969 by the Royal Government of Bhutan to facilitate procurement of essential goods for government agencies, the company has since grown into a major commercial player and is now a subsidiary of Druk Holding and Investments Ltd. (DHI).
STCBL is the exclusive distributor of Toyota vehicles in Bhutan, while also representing Eicher commercial vehicles and other international brands. The company operates a network of fuel retail outlets across Bhutan too.
STCBL distributes agricultural machinery, construction equipment, and industrial components. Through its Export Unit, STCBL manages the shipment of Bhutanese resources such as stone chips and boulders to key markets like Bangladesh.
The company is also exploring opportunities to export agricultural products, tapping into Bhutan’s comparative advantages. The business portfolio also includes the import and distribution of ICT equipment, electronics, and household goods.
Tashi Namgyal from Thimphu
