Bengaluru-based two-wheeler electric vehicle (EV) manufacturer Ather Energy’s net loss surged over 150 per cent in the year ended 31 March, 2023. The Hero MotoCorp-backed EV startup reported a loss of Rs 864.5 crore in the financial year 2022-23 (FY23) as against a loss of Rs 344.1 crore in FY22, despite a strong growth in its sales.
Operating revenue increased by 4.3 times to Rs ,783.6 crore in FY23 from Rs 408.5 crore in the previous fiscal year. Ather Energy’s operating revenue stood at Rs 80 crore in FY21.
Selling escooters accounts for most of its revenue. Its total revenue was Rs 1,806.1 crore in the last fiscal year, which is much higher than the previous year’s Rs 408.5 crore.
On the other hand, the company’s expenses increased significantly. It spent Rs 2,670.6 crore in the last year, compared to Rs 757.9 crore in FY22.
The biggest expense for Ather was the cost of materials. It spent Rs 1,655.7 crore on materials in FY23, which is 4.5 times more than the previous year’s Rs 365.1 crore.
Employee benefit expenses rose 2.9 times to Rs 334.9 crore from Rs 113.9 crore in FY22. Employee benefit expenses comprise employee salaries, PF contribution, gratuity, among others.
Advertisement expenses more than quadrupled to Rs 203.8 crore in FY23 from Rs 45.5 crore in the previous fiscal year.
Ather spent Rs 1.5 for every Rs 1 earned. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation), margin improved to about 38.3 per cent in FY23 from about 61.7 per cent in FY22.
Recently, Ather raised Rs 900 crore from Hero MotoCorp and GIC through a rights issue.
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