IPO-bound Ola Electric has unveiled its consolidated financial results for the financial year ending March 2023 (FY23), revealing a significant surge in revenue to Rs 2,782 crore, marking a remarkable 510 percent increase. However, alongside this impressive growth, the company reported a widened net loss of Rs 1,472 crore due to escalating expenses.
Ola Electric’s financial statements, shared with bankers and investors, indicate an Ebitda loss of Rs 1,318 crore in FY23, accompanied by total expenses skyrocketing to Rs 3,383 crore, compared to Rs 1,240 crore in FY22.
Despite the widened loss, the electric vehicle (EV) company remains optimistic, projecting an Ebitda profitability target of Rs 803 crore for FY25. The firm anticipates a reduction in Ebitda loss to Rs 950 crore in FY24, projecting a revenue of Rs 4,655 crore for the same period.
In addition to financial projections, Ola Electric aims to significantly increase its sales volume, targeting 0.3 million units in FY24 and a further boost to 0.9 million units by FY25. In FY23, the company sold 0.15 million units of electric vehicles (EVs). The firm aspires to achieve an EBITDA profitability rate of 6.6% by FY25, positioning itself as one of the fastest EV companies to reach profitability.
Ola Electric’s move towards an IPO in early January 2024 comes as it transforms into a public company, with Kotak Mahindra Capital and Goldman Sachs managing the offering. The EV maker is making strategic strides to capitalize on the burgeoning electric vehicle market and its own positive growth trajectory.
Bhavish Aggarwal, CEO of Ola Electric, expressed confidence in the financial performance, stating, “FY22 was an investment year for us, and FY23 has been a very strong revenue year for us, and the bottom line has improved significantly. This year we may not be able to share a forecast, but it will be positively surprising to see the numbers.”
Ola Electric reported a loss increase of around 293 percent to Rs 784 crore in FY22, with expenses soaring by approximately 306 percent YoY. The company’s revenue from operations in FY22 amounted to Rs 373 crore, a substantial YoY increase, reflecting the impact of entering the market in December 2021.
In late October, Ola Electric closed a funding round of Rs 3,200 crore (approximately $380 million) from prominent investors, including Temasek, and debt from the State Bank of India (SBI). The financial results and strategic moves position Ola Electric as a key player in the evolving landscape of electric mobility and pave the way for its upcoming IPO.