Ather Energy, supported by Hero MotoCorp, experienced both challenges and successes during the fiscal year ending in March 2023:
- Financial Performance:
- Net Loss: Ather Energy recorded a significant net loss of Rs 864.50 crore for the fiscal year 2022-23. This was a 151.24% drop compared to the previous fiscal year’s net loss of Rs 344.10 crore.
- Operating Revenues: Despite the net loss, the company saw its operating revenues skyrocket by 336.62%, reaching Rs 1783.60 crore. This suggests the company’s ability to generate revenue has greatly improved, although it may be incurring high costs elsewhere.
- Sales Volume:
- Ather Energy reported impressive sales figures, with 92,005 units of electric scooters sold in 2022-23, a significant leap from 23,441 units in the previous year.
- The majority (82.7%) of these sales were premium scooters with top-end features, indicating a favourable market reception and a preference for high-quality electric scooters.
- The company faced supply chain issues in the first half of the fiscal year, which affected its expansion plans.
- In the second half, Ather Energy encountered intense competition in the market, but still managed to achieve volume growth due to the strong demand for its electric scooters.
- Manufacturing Expansion:
- To augment its production, Ather Energy launched a second greenfield plant, leading to a division of labour: one plant dedicated to Li-Ion battery pack production, and the other for vehicle assembly and testing.
- This strategic move has increased Ather’s annual production capacity from 1.2 lakh vehicles to a whopping 4.2 lakh vehicles.
- Charging Infrastructure:
- Ather Energy has strengthened its commitment to providing charging solutions by establishing 912 fast-charging stations in FY23 alone.
- With a cumulative total of 1225 fast-charging stations across 91 cities, Ather Energy solidifies its position as the country’s leading provider of electric two-wheeler fast-charging solutions.
While Ather Energy’s financials show a net loss, the overall picture reflects a company in growth mode, rapidly scaling up production, sales, and infrastructure. The huge growth in revenue and sales volumes, coupled with significant manufacturing expansion and infrastructure development, suggests that Ather Energy is investing heavily in its future. This proactive stance might be a bid to capture a dominant market share in India’s burgeoning electric two-wheeler segment.