However, despite the revenue growth, the company's losses widened by 8% to INR 1,584 crore compared to INR 1,472 crore in FY23. The firm cited a rise in expenses behind the increased loss, a national media organisation has reported.
Ola Electric's e-scooters have secured over 50% of the Indian market share. However, the total expenses for FY24 increased to INR 6,277 crore, a rise of nearly 62%. The company's total expenses, as a percentage of total income, dropped from 139.55% in FY23 to 119.72% in FY24.
"Ola Electric has said that it may continue to incur operating losses in the near term as it is investing in business and focusing on expansion," the company disclosed in its internal risk assessment within the prospectus.
The firm earmarked around INR 1,600 crore from the IPO for research and development, having spent about INR 79 crore on R&D in FY24 alone, which represents about 7.69% of the total revenue. Meanwhile, employee-related costs, including salaries and bonuses, increased by 3% to INR 438 crore.
In a note to investors and bankers in December 2023, Ola Electric targeted an EBITDA profitability of INR 803 crore in FY25. The company has also projected an EBITDA loss reduction to INR 950 crore in FY24 and anticipated revenue of INR 4,655 crore for the same fiscal year.
As Ola Electric prepares for its IPO, the focus remains on expansion and substantial investments in research and development to maintain its market position in the competitive e-scooter industry.
(Source: Moneycontrol)
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