Kathmandu. TG Auto Group Pvt. Ltd., which has been installing Royal Enfield motorcycles also known as Bullet Motorcycles, has increased its business by 28 percent in a year.
According to rating agency Care Ratings Nepal, the company had a net profit in the previous fiscal year 2080. In the last fiscal year 2081, the turnover income of Rs. 2.92 billion was Rs. 2.92 billion. It has increased to Rs 3.74 billion in 2018-19.
The company sold 11,883 units of motorcycles in the last fiscal year compared to 10,085 units in the previous fiscal year. The increase in motorcycle sales and sophisticated pricing contributed to the increase in its turnover. Especially, Royal Enfield motorcycles with 350 cc engine capacity are very popular among the customers.
CARE Ratings Nepal has reaffirmed “Care NP A Three” rating for the company’s short-term bankability, on the back of positive developments in financial indicators including growth in transaction volume and profitability. CARE Ratings has withdrawn its long-term debt rating to ‘triple B minus’ at the request of the company, which has fully repaid all long-term loans with a significant increase in business and profit.
In the last fiscal year, the company earned a profit after tax of Rs 17.20 crore and a profit of Rs 19.70 crore. This amount was Rs 14.70 crore and Rs 15.40 crore respectively in the previous fiscal year. Its shareholders have also received dividends in the previous financial year. At the end of the last fiscal year, the total loan stood at Rs 1.10 crore. This indicates that the liquidity position of the company is strong.
While profit distribution impacts the net worth to gearing ratio, the company’s financial risk profile remains strong due to comfortable debt repayment capacity. Its interest expense burden has also been significantly reduced as it is free from long-term debt liability. The company has already paid Rs 11.40 crore in advance of the principal payment schedule.
TG Auto Group is a subsidiary of the Triveni Group. The group, which also operates Big Mart Department Store, has investments in Ghorahi Cement, Nepal Tea Development Corporation (Tokla), Yasuda Home Appliances, Dolphin Chair, Vanasi Ghee and Nepal Life Insurance.
Triveni Group and Vishal Group have both family and business ties.TAG_OPEN_em_16 CARE Ratings is a key partner of Vishal Group in Nepal.
