Ola Electric's revenue hits Rs 5,000 crore, losses widen by 8% in FY24

Ola Electric Reports FY24 numbers

IPO-bound Ola Electric FY24 operating revenues jumped by 90 percent to Rs 5,009 crores, driven by a surge in e-scooter sales that have cemented the company's dominance with over 50 percent market share, the company's Red Herring Prospectus (RHP) document filed on July 27 showed.

Despite a jump in revenue, the firm's losses widened by 8 percent to Rs 1,584 crores. In FY23 the firm's net loss was recorded at Rs 1,472 crore on the back of an increase in its expenses. Operating revenue was at Rs  Rs 2,782 crore.

As part of the internal risk disclosure within the prospectus, Ola Electric has said that it may continue to incur operating losses in the near term as it is investing in business and focussing on expansion.

"For example, the expansion of our product portfolio and our strategy of expanding our sales footprint across international automotive markets could result in an increase in our operating costs," The firm has disclosed.

The firm's total expenses for FY24 came at Rs 6,277 crores, up nearly 62 percent.

"Our total expenses increased to Rs 62,774.11 million in Fiscal 2024 from Rs 38,833.75 million in Fiscal 2023 primarily due to an increase in the cost of materials consumed in the production of our scooters and other expenses, in line with the growth in sales of our scooters," the firm's RHP has said.

The company's total expenses as a percentage of total income were 119.72% in the Fiscal 2024 as compared to 139.55 percent in the Fiscal 2023.

The firm, which is planning to utilise around 1,600 crores towards R&D from the IPO, has spent around Rs 79 crores towards research and development in FY24. The R&D cost is around 7.69 percent of the total revenue earned.

The firm's total employee cost which includes salaries, bonuses, and other employee-related costs went up by 3 percent to Rs 438 crores in FY24.

In December of 2023, Ola Electric in a note to investors and the bankers, said that it is targeting an EBITDA profitability of Rs 803 crore in FY25.

Also Read: Ola Electric reports Rs 2,782 cr revenue in FY23, targets Ebitda profitability by FY25

The firm has also said that its EBITDA loss will come down to Rs 950 crore in FY24. The company has projected a revenue of Rs 4,655 crores in FY 24.