Hero Motocorp attributes a loss of Rs 390 crore in investee company Ather Energy

This comes at a time when the automaker recently invested Rs 124 crore to acquire an additional 2.2 percent stake in Ather Energy, taking its total holding to 41 percent in the EV maker.

Hero MotoCorp has attributed a loss of Rs 390 crore, reported by Ather Energy in FY24, to its investment in associate electric vehicle manufacturing firm made last year, according to the two-wheeler maker's annual report.

In FY24, Ather reported a consolidated revenue of Rs 1,789 crore as against Rs 1,773 crores in FY23. The firm's losses widened to Rs 1,059 crore in FY24, up nearly 22.5 percent year-on-year (YoY).

This comes at a time when the automaker recently invested Rs 124 crore to acquire an additional 2.2 percent stake in Ather Energy, taking its total holding to 41 percent in the EV maker.

Hero has invested more than Rs 700 crore in Ather till date. In September 2023, Ather raised Rs 900 crore from Hero MotoCorp and GIC, through a rights issue.

This was an extension of the Series E round worth $128 million, which was announced in May 2022, led by National Investment and Infrastructure Fund Ltd's (NIIFL) Strategic Opportunities Fund (SOF) and Hero MotoCorp along with additional investors in May this year.

The EV maker is also gearing up for its initial public offering (IPO) by early 2025. According to Ather's media statement the company’s revenue jumped 4.4X to Rs 1,783 crore from Rs 408 crore in FY22. Ather also increased its retail footprint by 4X, to 130 stores from 30 stores last year.

Hero MotoCorp's net profit for the full financial year stood at Rs 3,968 crore in FY24, a growth of 36 percent on a YoY basis. The revenue from operations for the full year stood at Rs 37,456 crore, a 11 percent growth over the previous year.