Ather Energy, a manufacturer of electric vehicles, reported consolidated operational income of Rs 1,784 crore for the fiscal year 2023, an increase of about 337 percent, even as its losses increased by almost 150 percent to Rs 864 crore. According to financial information received by the business intelligence platform Tofler, Ather Energy’s losses resulted from a 260 percent increase in its total expenses during FY23, which reached almost Rs 2,611 crore.
Operating costs at Ather increased by 270 percent to Rs 2,498 crore in FY23. This follows a Reuters report that said Ola Electric, a direct rival of Ather, had an FY23 operational loss of Rs 1,119 crore ($136 million) on revenues of Rs 2,740 crore ($335 million). According to a statement from the firm, Ather sold 92,005 electric scooters in FY23 as opposed to 23,441 units the year before.
The company increased its footprint by opening a second greenfield plant to assemble and test vehicles in the same logistics park as the current plant in Krishnagiri, Tamil Nadu, throughout the year. “With this addition, the installed production capacity has increased to 4.2 Lakh vehicles from an earlier capacity of 1.2 Lakh vehicles per annum,” the statement read.
Ather Energy’s future plans
The company wants to expand into Tier-2 and Tier-3 markets and extend its presence in the North, East, and West areas. In order to gain market share, Ather “…aims to increase its network reach through retail partners in Tier-2 and Tier-3 markets with a focus on adding more experience centers in new cities,” according to the document.
Through a rights offer, Ather Energy received Rs 900 crore from its current backers Hero MotoCorp and GIC in September. The most recent financing is an expansion of the $128 million Series E round, which was announced in May 2022 and was led in May of this year by the Strategic Opportunities Fund (SOF) of National Investment and Infrastructure Fund Ltd. (NIIFL), Hero MotoCorp, and other investors.
Ather Energy raised Rs 400.6 crore ($50 million) in October 2022, with the help of current investor Caladium Investment.
