Ola Electric Mobility Ltd has announced a consolidated net loss of Rs 1,472.08 crore for the fiscal year 2023 and the company has also indicated the possibility of continued losses in the near term due to higher operating expenses related to product and sales expansion. Despite the losses, Ola Electric has made history by becoming the first electric vehicle (EV) company to sell over 2.5 lakh units in a year.
Financial Performance in FY23
Ola Electric's consolidated net loss for FY23 stands at Rs 1,472.08 crore, a significant increase from the loss of Rs 784.15 crore reported in FY22. The revenue from operations for the year amounted to Rs 2,630.93 crore, a substantial rise from Rs 373.42 crore in FY22.
It's important to note that the results for FY23 are not directly comparable to FY22 as Ola Electric initiated the delivery of its first scooter, Ola S1 Pro, in December 2021. Revenue from operations in FY22 was recognized only for the last four months, whereas FY23 accounts for the entire year.
Electric Scooter Sales and Demand
Ola Electric achieved a notable milestone by selling a total of 1,56,251 electric scooters in FY23 and this figure includes 98,199 units of the Ola S1 Pro and 58,052 units of other models. The company attributes the higher demand and sales volumes to the popularity of its electric vehicles (EVs) and increased customer interest partly driven by the FAME subsidy that reduced the cost of ownership.
Profitability Metrics
Despite the positive sales figures, Ola Electric reported an operating profit (EBITDA) of negative Rs 1,197.1 crore, with operating profit margin and EBITDA margin both recorded at negative 43.02 percent and operating profit/loss is a reflection of a company's efficiency in its core business while net profit/loss provides insights into overall financial health.
Future Outlook and Expansion Plans
Ola Electric anticipates continued operating losses in the short term as it focuses on business investments, product portfolio expansion, capacity building, and operational scaling. The company's capital expenditure for FY23 amounted to Rs 842.61 crore.
Despite the financial challenges Ola Electric maintains a dominant position in India's electric two-wheeler market boasting a market share of over 30 percent. Additionally, the company is actively setting up a Gigafactory in Tamil Nadu through its subsidiary, Ola Cell Technologies. The Gigafactory is projected to commence cell production by March 2024, with an estimated capacity of 1.4 GWh and this strategic move aligns with Ola Electric's commitment to advancing the EV ecosystem and meeting the growing demand for sustainable mobility solutions in the country.