Ola Electric reported a consolidated net loss of Rs 1,472 crore in FY23 as against a loss of Rs 784 crore in FY22. Revenue from operations stood at Rs 2,630 crore in FY23 compared to just Rs 373 crore in FY22 due to higher sales volumes.
The losses are attributed to Ola Electric investing heavily in expanding production capacity, product portfolio and scaling up operations. The company said it may continue to report losses in the near term due to such investments.
However, Ola Electric clocked strong growth selling 1.56 lakh electric scooters in FY23, making it the first EV company in India to cross 2.5 lakh unit sales annually. This includes 98,199 units of the S1 Pro and 58,052 units of other models.
Operating profit and EBITDA margins remained negative at -43% due to expenditure outweighing revenue. But demand for Ola’s EVs increased, partly aided by FAME subsidies lowering cost of ownership.
Ola Electric currently offers 3 electric scooter models and commands over 30% market share in India’s EV two-wheeler space. It is also setting up a gigafactory in Tamil Nadu through subsidiary Ola Cell Technologies which will start production by March 2024.
Despite losses from heavy investment, Ola Electric saw strong growth in FY23 on the back of robust sales. The company acknowledges it may take some time to turn profitable given plans for more product launches, capacity expansion and scaling up operations.
