Ola Electric, steered by Bhavish Aggarwal, encountered a significant increase in its net loss, nearly doubling to Rs 1,472 crore in FY23 from Rs 784.1 crore in the previous fiscal year. This surge in losses was attributed to a substantial rise in expenses.
The electric vehicle company, on the cusp of its IPO launch, reported an EBITDA loss of Rs 1,318 crore, with total expenses soaring to Rs 3,383 crore, a stark contrast to the Rs 1,240 crore recorded in FY22.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) serve as a gauge of a company's fundamental profitability.
Ola Electric has set its sights on achieving an EBITDA profitability of Rs 803 crore by FY25, as communicated in reports to investors and bankers.
The company disclosed consolidated revenue of Rs 2,782 crore in FY23, marking an astounding 510 percent surge from the preceding fiscal year.
With plans to enter the public market by early 2024, the EV manufacturer aims to address its escalating losses, which surged by nearly 293 percent to Rs 784 crore in FY22.
In October, Ola Electric secured Rs 3,200 crore in funding through equity from Temasek-led investors and project debt from the State Bank of India. These funds are earmarked for expanding Ola’s EV operations and establishing India's inaugural lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu.
The company's roadmap includes the launch of electric motorcycles, followed by electric cars, and expediting the construction of the Gigafactory.
Bhavish Aggarwal, Founder and CEO of Ola Electric, expressed commitment to advancing core EV technologies and scaling up manufacturing to accelerate the transition toward sustainable mobility. Acknowledging the unwavering support from investors and lenders, Aggarwal highlighted their belief in Ola's vision.
Ola Electric's distinction as the sole Indian EV company selected under the government's cell PLI scheme, with a maximum capacity allocation of 20 GWh, underscores its significant strides in the sector.
(With Agency Inputs)
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