Kathmandu: Nepal Ekarat Engineering Company, the manufacturer of NEEK brand transformers, has reported a significant 25.7 percent drop in its annual business turnover for the fiscal year 2024 compared to the previous year.
The company’s revenue stood at Rs. 1.83 billion in 2024, down from Rs 2.46 billion in 2023. However, this figure still remains higher than its 2022 performance of Rs 1.44 billion and 2021’s Rs 559 million.
The company, established in 1991, has been manufacturing transformers ranging from 1 kVA to 132 kVA, with an annual production capacity of 18,000 units of 100 kVA transformers.
While primarily serving the domestic market, Nepal Ekarat Engineering has been gradually expanding its export business. In 2024, the company exported transformers worth Rs 20 million, which significantly increased to Rs 44 million in the last fiscal year.
The company’s profitability has seen a concerning decline, with net profits dropping to just 0.6 percent in 2024 from 2 percent in 2023.
Nepal Ekarat Engineering has been operating at an average capacity utilization of 19 percent since 2021 through the first nine months of the last fiscal year, with 2023 marking its highest utilization rate.
The company attributed part of its revenue decline to reduced tenders from Nepal Electricity Authority, which led to a 17 percent business contraction in 2024. The first nine months of the last fiscal year saw an additional 5 percent decline. Notably, transformers above 125 kVA accounted for 69 percent of the company’s revenue during this period.
Nepal Ekarat Engineering has obtained credit ratings worth Rs 1.63 billion for both long-term and short-term loans.
The company is led by board directors Kush Kumar Joshi and Ajay Kumar Mudhbhari.
The transformer manufacturer continues to face challenges in its supply chain, as it imports all necessary raw materials from India for its production processes. This foreign dependency adds another layer of complexity to the company’s operations amidst fluctuating market conditions.
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