KATHMANDU: Hulas Auto Craft, under the Golchha Group, has expanded its business aggressively and recorded strong growth in the current fiscal year.
The company’s turnover rose by 78 percent in the first nine months of the current fiscal year. It also reported a total business of Rs 9.52 billion during the period.
The company has announced plans to expand its assembly operations with a new plant. It currently assembles Bajaj motorcycles and is preparing to start local assembly of the TVS iQube electric scooter in Nepal. The expansion plan is aimed at increasing production capacity and strengthening local manufacturing.
The company has obtained credit ratings for loans worth Rs 3.93 billion. This includes Rs 76.62 million in long-term loans and Rs 3.17 billion in short-term loans.
According to ICRA Nepal, the company has received an A-rating for short-term borrowing and a BBB-rating for long-term debt.
The long-term loans will be used for a new assembly plant, technology upgrades, and infrastructure expansion. Short-term loans will be used for CKD imports, raw materials, and inventory management.
Hulas Auto Craft recorded Rs 9.52 billion in revenue in the first nine months of the current fiscal year. It had posted Rs 9.12 billion in the previous fiscal year. The company earned Rs 5.13 billion in 2024 and Rs 5.61 billion in 2023, showing steady growth in recent years.
Revenue increased by 39 percent year-on-year in the current fiscal period. The company has already surpassed last year’s total revenue in just nine months. The growth is mainly driven by increased sales of assembled two-wheelers.
The company’s operating profit margin improved slightly to 6.9 percent in the current fiscal year from 6.8 percent last year. Its debt service coverage ratio also improved to 3.3 times from 2.8 times in the previous fiscal year.
Hulas Auto Craft was established in 2013 and operates an assembly plant in Ramgram, Nawalparasi. The company assembles two-wheelers and three-wheelers in Nepal.
It is primarily owned by Shekhar Golchha with an 80 percent stake, while Akash Golchha holds 20 percent ownership.
