Kathmandu. CG Motors Pvt. Ltd., a subsidiary of Chaudhary Group, has done a business of about Rs 9 billion in the first nine months of the last fiscal year 2082/83. The company had a turnover of Rs 8.89 billion till the end of April last year.

The company’s business declined by about 21 percent compared to the same period of the previous financial year. In the previous financial year (2025), the company had a turnover of Rs 15.02 billion.

Similarly, the company said that it had a business of Rs 6.99 billion in 2024 and Rs 2.05 billion in 2023. According to the company, the sale of Neta brand vehicles in May 2025 and KYC brand vehicles was stopped in January 2026. After the closure of the brand, the company’s business has decreased.

With the decline in the company’s revenue, the profit margin (Obidta-OI) has also decreased. The OBITTA-OI has come down from 15.1 percent in 2024 to 6.8 percent in the nine months of the last financial year. The company’s OBITTA-OI was 7.6 percent in 2025.

According to the company, the increase in competitive sales and distribution costs in the market in recent times has also affected the company’s business and profit margins. The increase in the share of two-wheelers with comparatively low margins has also put pressure on margins.

The contribution of two-wheelers to the revenue of CG Motors has increased significantly in recent times. Two-wheelers accounted for about 32 percent of the total revenue in 2025, which has increased to 57 percent in the last financial year.

The company has reduced its debt burden during this period. The ratio of total loans to tangible net worth declined from 7.2 times at the end of 2024 to 4.7 times in FY25 and 2.4 times in the 9 months of the previous financial year.

However, the company’s working capital management is still challenging, according to ICRA Nepal. In the recent past, the ratio of the company’s net working capital and operating income has been around 45 percent to 46 percent. The high reserves and the long time taken to collect money from the customers have put pressure on the liquidity of the company.

The company’s debt repayment capacity has also decreased slightly. The debt service coverage ratio has come down from 3.0 times in 2024 to 1.9 times in 2025 and has been limited to 1.9 times in the nine months of the last financial year. Similarly, the interest repayment capacity ratio has come down from 4.8 times in 2024 to 2.6 times in 2025 and 2.3 times in the 9 months of the last financial year.

CG Motors was established in September 2009 and started its business as an automobile dealer in July 2022. The company currently officially distributes various commercial and passenger vehicles, including King Long, CHTC and Hero two-wheelers. The company has 10 own showrooms. Similarly, there are 21 service centers. The company has a sales and service network of 75 dealers.

The company has been rated for short-term debt facility of Rs 6.40 billion. The rating agency has given ‘ICRA NP A4’ rating to the company’s debt.