KATHMANDU: Shankar Group’s two leading automobile ventures, Jagdamba Motors and Jagdamba Auto Group, are strengthening their financial foothold in Nepal’s automotive industry. According to the latest report from Infomerics Credit Rating Nepal, both companies have demonstrated remarkable revenue growth, reinforcing their market position and consumer trust.

A Surge in Revenue

The rating agency’s 2024 report highlights a substantial business expansion, with both firms generating a combined revenue of RS 13.67 billion. Jagdamba Motors led the charge with NPR 8.82 billion, while Jagdamba Auto Group recorded NPR 4.85 billion. This financial uptrend signals a revitalization of Nepal’s automobile sector, fueled by strategic business moves and consumer confidence.

Strategic Vision and Market Expansion

Jagdamba’s financial success can be attributed to a well-defined strategy, customer-centric services, and a commitment to delivering high-quality vehicles. The group’s focus on cutting-edge technology, robust after-sales service, and accessible financial plans has drawn in a growing customer base. A key driver behind this growth is the increasing popularity of TVS motorcycles, particularly among Nepal’s youth demographic.

Models like the Apache series, Raider, and Ntorq scooters have emerged as top sellers, winning customers over with their stylish design, advanced technology, fuel efficiency, and competitive pricing. This surge in demand has further bolstered Jagdamba’s financial standing and market dominance.

Jagdamba Motors: A Leader in Distribution

Jagdamba Motors, a prominent player in Nepal’s automotive distribution sector, was originally established as SG Global Private Limited in December 2010. The company rebranded as Jagdamba Motors in June 2015 and has been the exclusive distributor of TVS Motor Company since September of that year. In 2020, the firm also secured exclusive distribution rights for Proton cars in Nepal.

Despite market fluctuations, Jagdamba Motors has maintained strong financial performance. In 2022, the company reported an operating income of NPR 13.61 billion, which adjusted to NPR 7.84 billion in 2023 and increased to NPR 8.82 billion in 2024. However, its EBITDA margin declined from 14.93% in 2022 to 10.62% in 2023 and 10.53% in 2024.

The company’s interest coverage ratio, which dipped from 5.60 in 2022 to 1.71 in 2023, saw improvement to 3.26 in 2024. Similarly, its debt-equity ratio peaked at 3.63 in 2023 but declined to 3.01 in 2024. Jagdamba Motors’ liquidity position has also improved, with the current ratio rising from 1.12 in 2023 to 1.24 in 2024.

Jagdamba Auto Group: A Rising Force in Manufacturing

Founded in December 2014, Jagdamba Auto Group has rapidly established itself in Nepal’s automobile trade, assembly, and servicing sector. The company initiated its two- and three-wheeler assembly unit in 2021, further enhancing its market presence.

Jagdamba Auto Group’s revenue trajectory reflects steady growth. It reported sales of NPR 3.43 billion in 2022, which slightly declined to NPR 2.73 billion in 2023 but rebounded significantly in 2024. The company’s EBITDA margin improved from 5.28% in 2022 to 8.16% in 2023 and 8.22% in 2024.

The firm’s interest coverage ratio, which had dropped to 1.64 in 2023, rebounded impressively to 4.36 in 2024. Its debt ratio has also improved, declining from 4.57 in 2022 to 1.35 in 2024, reflecting stronger financial stability. Additionally, the company’s current ratio rose from 1.26 in 2022 to 1.83 in 2024, indicating improved liquidity and operational efficiency.

Investing in the Future

Jagdamba Auto Group has been diversifying its vehicle lineup, expanding investments in both trade and assembly operations. With an increasing focus on motorcycles ranging from 100cc to 310cc, scooters between 110cc and 125cc, and three-wheelers, the company is positioning itself for long-term success in Nepal’s competitive automotive sector.

In terms of financing, Jagdamba Auto Group has secured banking loans and credit ratings worth NPR 1.49 billion, while Jagdamba Motors has obtained NPR 5.96 billion in financial backing. These developments indicate robust investor confidence in both firms.

Steady Growth, Strong Leadership

Under the leadership of Shahil Agarwal, both Jagdamba Motors and Jagdamba Auto Group continue to drive Nepal’s automobile industry forward. Their sustained financial growth, innovative strategies, and commitment to customer satisfaction place them at the forefront of the nation’s automotive sector. As Nepal’s vehicle market evolves, these companies are well-positioned to capitalize on new opportunities and maintain their trajectory of success.