Kathmandu: Two prominent subsidiaries of the Chaudhary Group, EOL and CG Electronics, have reported a combined turnover of Rs 1.11 billion during the first six months of the current fiscal year. Both companies operate within the home appliance sector, distributing a wide array of electrical goods across the country. EOL spearheaded the group’s performance with a turnover of Rs 963 million, while CG Electronics contributed Rs 149 million to the mid-year total.
Established in 2009, EOL has maintained a steady presence in the market, having recorded revenues of Rs 2.18 billion in the previous fiscal year, Rs 1.85 billion in 2024, and Rs 1.74 billion in 2023. The company serves as the authorized distributor for prominent global brands, including Godrej, TCL, Kent, and Elica, while also acting as a national dealer for CG and Sensei products.
Regarding its financial health, EOL maintained a profit margin of 11 per cent during these six months, a slight decrease from the 13 per cent operating profit seen in the previous year. The company’s financial indicators remain stable, with a gearing ratio of 0.8x and comfortable coverage metrics.
Specifically, its interest coverage stands at 5.1x, while its debt service coverage ratio is 2.1x, indicating that operating profits are more than double its required debt repayments. EOL’s extensive distribution network includes over a thousand dealers and distributors across Nepal, further supported by 28 company-operated branches.
Ownership of EOL is primarily held by Nirvana Chaudhary, who possesses a 99 per cent stake. To facilitate its operations, the company recently sought credit ratings for Rs 1.79 billion in financing, comprising Rs 90 million in long-term loans and Rs 1.7 billion in short-term credit.
Meanwhile, CG Electronics, founded in 1998, saw its turnover reach Rs 149 million in the first half of the current fiscal year. This figure represents a significant shift from its previous performance levels, as the company had recorded Rs 703 million in the last fiscal year and Rs 698 million in 2024.
The company’s business faced a sharp decline this year following supply chain disruptions caused by the “Gen-Z” protests last August. During the unrest, the company’s warehouses and assembly plants were vandalized, leading to reduced sales and narrower profit margins. Consequently, its financial indicators have tightened, with the interest coverage ratio dropping to 1.7x from 6.3x a year ago, alongside a gearing ratio of 0.6x.
CG Electronics operates as the authorized importer and assembler for LG LED TVs, as well as Toshiba, Sensei, TCL, and CG brands. The company’s ownership structure is divided between Nirvana Chaudhary at 52 per cent, Apollo Steels at 47 per cent, and Sarika Chaudhary at 1 per cent. Currently, the firm has obtained ratings for Rs 660 million in short-term debt to support its ongoing business requirements.
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