Bengaluru-based electric vehicle (EV) manufacturer, Ather Energy, has disclosed substantial losses for the financial year 2022-23, according to its recent regulatory filing. The firm's losses surged by over 2.5 times compared to the previous fiscal year, reaching INR 865 crore ($1.16 billion), equating to a significant INR 63,000 loss on each Ather 450 X electric scooter sold in India.
The company's total expenses tripled from INR 757.9 crore in FY22 to an overwhelming INR 2,670.6 crore in FY23. Despite these setbacks, Ather Energy's revenue from operations grew by 4.3 times, reaching INR 1,784 crore in the fiscal year ending March 2023. Furthermore, their EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin improved to -38.3%, indicating that the company spent INR 1.5 for every INR 1 earned from operations in FY23.
Earlier this year, the EV firm raised INR 900 crore through a rights issue, with investments from existing shareholders Hero MotoCorp and global investment firm GIC. These funds are planned for new product launches, expanding the charging infrastructure, and strengthening the retail network.
In line with its expansion strategy, Ather Energy recently introduced the all-new Ather 450S scooter alongside updated versions of their flagship Ather 450X models. The company launched these models with an aim to cater to a wider audience and extend its market share in the electric scooter segment.
Despite the financial challenges faced in FY23, Ather Energy maintains a substantial presence with over 200 retail touchpoints across more than 100 cities in India and has established a public fast-charging network comprising over 1,500 Ather Grids. These developments indicate the company's determination to continue its growth in the electric two-wheeler market despite the financial hurdles.
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