IME earns nearly Rs 1 billion in operating income, Declares up to 140 percent dividend

KATHMANDU: IME Limited, a subsidiary of the IME Group and one of Nepal’s leading remittance companies, has reported operating income of nearly Rs 1 billion in a year, while maintaining a strong profitability profile despite growing competition in the remittance market.

The company stated that it recorded operating income of Rs 796 million in 2025, marking an increase of Rs 5 million, or 0.63 percent, compared to the previous year. In 2024, IME had posted operating income of Rs 791 million.

According to the company, a significant portion of its income continues to come from foreign exchange transactions. In the fiscal year 2025, around 65 percent of IME’s total income was generated from foreign exchange gains earned by selling foreign currency to commercial banks and Nepal Rastra Bank. However, the company has cautioned that volatility in foreign exchange rates, fluctuations in inward remittance volumes, and intensifying competition could make forex-based income increasingly unstable.

IME’s income performance has shown fluctuations over recent years. The company earned Rs 812 million in 2023, Rs 968 million in 2022, and Rs 794 million in 2021. It noted that changes in foreign exchange transactions, international migration policies, foreign employment permits—particularly in Gulf countries—and regulations governing cross-border money transfers could have a direct impact on its business operations.

The company said more than 90 percent of its total inward remittance inflows originate from Qatar, the United Arab Emirates (UAE), India, the United States, and other major destination countries for Nepali migrant workers. Any adverse regulatory changes in these countries could exert additional pressure on IME’s operating income. Likewise, amendments to remittance-related directives issued by Nepal Rastra Bank could pose short-term operational challenges.

Established in 2001 as a private company, IME was converted into a public limited company in 2014. It currently partners with more than 20 international money transfer companies to provide inward remittance services in Nepal.

IME has also expanded its domestic network extensively. As of July 2025, the company has nearly 17,000 registered internal agents across the country, including bank branches, individual agents, and cooperatives, according to company data.

In a major structural development, IME merged GME Remit Pvt. Ltd. and began unified operations under the name IME Limited from August 14, 2024. The company’s central office is located in Panipokhari, Kathmandu. Promoters Chandraprasad Dhakal and Hemraj Dhakal jointly hold a 33.3 percent ownership stake in the company.

Despite rising competition, IME reported that its operating profit margin has remained resilient. In fiscal year 2025, the operating profit margin stood at around 36.4 percent, up from approximately 34.6 percent in fiscal year 2023. In 2024, the margin was notably higher at 44.7 percent. The company attributed the sustained profitability to increased use of digital remittance payment channels, which has helped reduce agent commission costs.

IME further noted that Nepal’s remittance inflows have grown at an average annual rate of 14.5 percent over the past five years. In fiscal year 2025, remittance inflows were equivalent to nearly 28 percent of Nepal’s gross domestic product, reinforcing the sector’s role as a key pillar of the national economy.

With alternative sources such as exports and foreign direct investment remaining relatively weak, inward remittance continues to serve as the backbone of Nepal’s foreign exchange reserves. IME said government policies have increasingly prioritized the remittance sector, with a focus on channeling remittance inflows through formal systems.

On shareholder returns, the company reported distributing dividends equivalent to 140 percent of profits in 2024 and 69 percent in fiscal year 2025.

IME Limited has also applied to the Securities Board of Nepal (SEBON) for approval to issue an initial public offering. The company has sought permission to issue 1 million shares worth Rs 100 million, representing 10 percent of its issued capital of Rs 1 billion. Prabhu Capital has been appointed as the issue and sales manager for the proposed IPO.