Ola Electric records Rs 373 Cr revenue in FY22; losses jump 4X

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Ola Electric records Rs 373 Cr revenue in FY22
losses jump 4X
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OLA Electric Financials FY22

• Ola Electric has finally published its annual
  financial results for the fiscal year ending
  March 2022 or FY22.
• The Bhavish Aggarwal-led company was in a
  pre-revenue phase during FY21.
• As per Entrackr, Ola Electric has posted Rs 373
  crore in operating revenue during FY22 as
  compared to Rs 0.86 crore in FY21, according to
  its annual financial statements filed with the
  Registrar of Companies
• The sale of scooters formed 93.3 of the
  collections and registered Rs 348 crore in
  revenues during FY22.
• the cost of procurement of products accounted for
  50.4 of the total expenditure. This cost
  registered at Rs 625 crore in FY22.
• Its employee benefit costs surged 43.1 to Rs 282
  crore during FY22.

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Ola Electric Expenses Breakdown

• Ola Electrics advertisement spending and legal
  professional fees increased 206 and 57
  respectively to Rs 49 crore and Rs 44 crore
  during FY22.
• The company added another Rs 37 crore towards IT
  costs which steered its overall expenditure 4X to
  Rs 1,240 crore in FY22.
• Manufacturing expenses and additional overhead
  costs resulted in a fourfold rise in losses,
  reaching Rs 784 crore in the fiscal year 2022.
• Its ROCE and EBITDA margin registered at -18 and
  -157 in FY22. Ola Electric spent Rs 3.32 to earn
  a unit of operating revenue.
• A Reuters report recently said that the company
  recorded 136 million (Rs 1,100 crore) loss in
  FY23 with a revenue of 335 million (Rs 2,700
  crore). 

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Final Words

• The FAME subsidy controversy, which manufacturers
  want to put to rest soon, has rocked the market
  in the past quarter. Ola Electric, which receives
  the majority of these subsidies among two-wheeler
  producers, would surely gain from this. What
  would be even more helpful is a protracted period
  without any scooter-related mishaps, which has
  been a major worry for all manufacturers in their
  efforts to establish a reputation as a reliable
  and safe E-ride.
• For more details you may click here