Ather’s FY24 Turnover Declines Marginally YoY Despite EV Sales Rise

Ather Energy Eyes INR 4,500 Cr IPO, To File DRHP Next Week

SUMMARY

Ather Energy’s turnover stood at INR 1,753.8 Cr in the year ended March 31, 2024, a decline of 1.5% from INR 1,780.9 Cr in FY23

The disclosure was made in Hero MotoCorp’s exchange filing, in which it informed about buying an additional 2.2% stake in Ather in a secondary deal

The two-wheeler EV startup, which competes with the likes of Ola Electric and TVS Motor, saw its net loss widen over 150% YoY to INR 864.5 Cr in FY23

Hero MotoCorp-backed electric two-wheeler startup Ather Energy’s turnover stood at INR 1,753.8 Cr in the year ended March 31, 2024 (FY24), a decline of 1.5% from INR 1,780.9 Cr reported in the year-ago period, as per Hero MotoCorp’s exchange filings.

It must be noted that automotive giant Hero MotoCorp announced an additional 2.2% stake acquisition in Ather for INR 124 Cr on Thursday (June 6). The company’s disclosure also mentioned Ather’s turnover.

The decline in the EV startup’s turnover in the last fiscal year is in stark contrast to the 336% year-on-year (YoY) jump it witnessed in FY23 from INR 408.5 Cr in FY22.

Ather reported a 4.3X jump in its operating revenue to INR 1,783.6 Cr in FY23 from INR 408.5 Cr in the year before.

Although turnover and operating revenue are often used interchangeably, there might be small differences in numbers while accounting. Hero MotoCorp did not provide Ather’s operating revenue or any other financial metrics in its filing.

Founded in 2013 by Swapnil Jain and Tarun Mehta, Ather is among the top players in the Indian electric two-wheeler market. From designing and manufacturing of vehicles and batteries to establishing its own charging infrastructure, Ather has created a huge network of its products and services over the years. It earns a majority of its revenue from the sales of escooters.

Ather competes with Bhavish Aggarwal-led Ola Electric, automotive giants TVS Motor, Bajaj, Hero MotoCorp, among others.

After building its market on its 450 series of escooters, Ather recently launched a family escooter series Rizta and also forayed into the smart helmet category.

Interestingly, the decline in Ather’s turnover came despite its total vehicle registrations rising to 1.09 Lakh units in FY24 from 76,941 units in FY23, as per Vahan data. This decline in turnover could likely be because of Ather reducing its vehicle price.

Amid rising competition from Ola Electric and TVS Motor, Ather slashed the price of its 450S escooter variant by INR 20,000 last fiscal year to grow sales.

The EV startup’s net loss widened over 150% YoY to INR 864.5 Cr in FY23.