Ola Electric's FY23 loss at Rs 1,472 crore; May see further losses in near term

India’s largest electric two-wheeler maker Ola Electric Mobility Ltd has reported a consolidated net loss of Rs 1,472.08 crore for the financial year 2022-2023 (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.

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 the year-ago period, 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.

Ola Electric sold a total of 156,251 electric scooters in FY23, which includes 98,199 Ola S1 Pro and 58,052 Ola S1. “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 amortization (EBITDA), was at negative Rs 1,197.1 crore rupees. Operating profit margin, EBITDA margin, 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 models and remains the dominant player in the country's electric two-wheeler market a market share of over 30%. The company plans to start delivery of the Ola S1 X (2 kWh) and the Ola S1 X (3 kWh) by the first half of FY25 and the motorcycles in the first half of FY26.

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