Ola Electric reports Rs 1,472 crore loss in FY23

Ola Electric Mobility Ltd has reported a consolidated net loss of Rs 1,472.08 crore for FY23. The company also said it might continue to report losses in the near term, considering higher operating expenses on account of product and sales expansion. This comes as the brand has become the first EV company to sell over 2.5 lakh units in a year.

The IPO-bound company’s consolidated net loss during FY23 came in at Rs 1,472.08 crore, against a loss of Rs 784.15 crore in FY22, as per the profit and loss statement provided in Ola Electric’s draft red herring prospectus. Revenue from operations for the year totaled Rs 2,630.93 crore, against Rs 373.42 crore in FY22. 

The company’s results for FY23 are not comparable with FY22 as the company started delivery of its first scooter, Ola S1 Pro, in December 2021. The revenue from operations in FY22 was only recognized for the last four months, compared to the full year of FY23.

Also see: Ola S1 X+ prices now start at Rs 89,999, down by Rs 20,000

Ola Electric sold a total of 1,56,251 electric scooters in FY23, which includes 98,199 units of the Ola S1 Pro and 58,052 units of its other models. “We experienced higher demand for our EVs and higher sales volumes, partly owing to the FAME subsidy available to our customers, which helped to lower the cost of ownership of our products,” the company said.

On the profitability front, the company’s operating profit, or earnings before interest, taxes, depreciation, and amortisation (EBITDA), was at negative Rs 1,197.1 crore. Operating profit margin and EBITDA margin, both came in at negative 43.02 percent.

Operating profit/loss reflects a company’s efficiency in its core business, while net profit/loss reflects overall financial health.

“We may continue to incur operating losses in the near term as we invest in our business and expand our product portfolio, build capacity and scale our operations,” the company noted in the DRHP. The company’s capital expenditure in FY23 was Rs 842.61 crore.

Ola Electric’s current electric scooter line-up includes three distinct models (S1 Pro Gen 2, S1 Air and the S1 X lineup) and it remains a dominant player in the country’s electric two-wheeler market with a market share of over 30 percent. 

Also see: Diwali discounts could help electric two-wheeler market cross 1 lakh mark

In addition, Ola Electric is setting up a Gigafactory in Tamil Nadu through its subsidiary Ola Cell Technologies. The factory is expected to start production of cells by March 2024 with a capacity of 1.4 GWh.

Also See: Ola S1 Air review: Retains the Ola experience

KIRAN MURALI & SHAHKAR ABIDI