EV Firm Ather Energy Reports 22% Increase in Losses to INR 1,060 Crore for FY24

17 Sep 2024

New Delhi: Ather Energy, an electric vehicle (EV) company set to raise over INR 3,100 crore through its initial public offering (IPO), reported a 22% increase in losses, totaling INR 1,060 crore for FY24. This loss expansion was accompanied by a 1.5% decline in operating revenue, which fell to INR 1,753.8 crore year-on-year.

The company's total expenditures for FY24 amounted to INR 2,674.2 crore. According to its draft red herring prospectus (DRHP) filed with SEBI, the drop in revenue was attributed to reduced government subsidies. Consequently, the retail price of Ather's electric two-wheelers increased by INR 20,434 to INR 30,285, leading to a slight decrease in revenue. In FY23, Ather had achieved a 335% year-on-year growth in operating revenue, reaching INR 1,780.9 crore.

In FY24, Ather’s highest expense was the cost of materials, which rose by 2.7% to INR 1,579.2 crore. Employee benefit expenses also increased by 10.3% to INR 369.2 crore, up from INR 334.8 crore in FY23.

The IPO will include a fresh issue of INR 3,100 crore and an offer for sale (OFS) of 2.2 crore equity shares. Proceeds will be directed towards establishing a new electric two-wheeler manufacturing facility and enhancing research and development. Recently, Ather Energy secured USD 71 million from the National Investment and Infrastructure Fund (NIIF), boosting its valuation to USD 1.3 billion and achieving unicorn status. This brings the total funds raised in the past few months to over USD 125 million.