Ola reports first-ever operating profit of Rs 89.8 Cr for FY21
Ride-hailing unicornhas reported its first-ever standalone operating profit of Rs 89.82 crore for FY2020-21 driven by cuts in operational expenditure, regulatory filings made by the company reveal.
Ola Cabs' operating profit, which is the earnings before interest, depreciation and amortisation (EBITDA), for FY21 grew by 115 percent as compared to FY20, when it had reported a loss of Rs 610 crore.
The shift towards an operating profit was driven largely due to a 75 percent cut in operational costs in FY21 as compared to FY20. The operational cost consists of employee expenditure, sales, and advertisement related and other expenses.
Bhavish Aggarwal, Founder and CEO, Ola
However, the revenue of Ola on a standalone basis stood at Rs 773 crore for FY21 as compared to Rs 2,073 crore in FY20, which was a decline of 63 percent.
The steep drop in revenues for Ola comes amidst the backdrop of the ongoing COVID-19 pandemic which has severely affected the ride-hailing business.
In September, Ola founder Bhavish Aggarwal said the gross merchandise value (GMV) of the mobility business had crossed the pre-COVID-19 levels.
“Our Ola cabs GMV crossed pre-covid levels last week. Recovery from the second wave is three times faster [...] 10 million people used Ola for the first time ever in FY21 [...] Many are moving to autos, taking our auto business to almost 150 percent of pre-COVID-19 levels," Bhavish had said in a series of tweets on microblogging website Twitter.
On a consolidated basis, ANI Technologies, which is the holding company of Ola, reported a 62 percent drop in revenue between FY21 and FY20. In FY 21, it had reported a revenue of Rs 27,213 crore as compared to Rs 10,397 crore.
The consolidated operations of Ola include foodtech venture Ola Food, and its financial services platform, Ola Money.
These developments come amidst Ola's plans to go for an initial public offering, which is expected to be launched soon. The ride-hailing unicorn has also made a serious move into the electric vehicle business and its two-wheeler scooters have already hit the market.