Ather Energy narrows net loss, reports 54% rise in revenue in Q2 as demand for scooters rises
The EV maker, now the third-largest in the country in terms of sales, managed to surpass the Bhavish Aggarwal-led Ola Electric in September for the first time.
Ather Energy reported a 54% rise in revenue on the back of surging sales of its electric two-wheelers during the festive season. The company reported a revenue from operations of Rs 898.9 crore in the three months ended September 30, compared with Rs 583.5 crore in the year-ago period.
At the same time, the company also managed to slash its losses. The company reported a 21.3% decline in net loss for the period to Rs 156.7 crore.
Ather Energy sold 65,595 units during the quarter compared to 34,189 units sold in the previous period. According to the firm, it commanded a market share of 17.4% by the end of the quarter.
Despite narrowing losses, the company saw an uptick in expenses to Rs 1094.8 crore in Q2 compared with Rs 796.1 crore, primarily due to an increase in cost of materials consumed, employee benefit expenses, and other expenditure.
Additionally, the company also saw an EBITDA margin improvement of about 1,100 basis points, helped by steps taken to attain cost discipline, it said.
“Q2 has been a strong quarter, with steady growth in market share and continued progress on our path to profitability. We saw continued improvement in EBITDA margin with improving operating leverage. Our strategic focus on Middle India has delivered results, with several states scaling up rapidly. The rest of India has also grown strongly, making our expansion more broad-based. In the South, we continue to lead the market and are seeing a new growth story driven by a denser retail presence across key cities. The response to Rizta and our ongoing retail expansion pan-India has been a key contributor to this momentum,” said Tarun Mehta, Executive Director and CEO, Ather Energy kid
The results follow the heightened interest in India’s electric vehicle segment amidst the ongoing shortage of rare-earth magnets—a key concern flagged by major automotive players in India due to import restrictions imposed by China.
However, Ather Energy is among the few players that shifted gears to begin research on reducing reliance on heavy rare-earth magnets. It has developed a heavy, rare-earth-free motor and has received type approval from the testing agency, ARAI, and has also begun receiving PM E-DRIVE eligibility certificates for these motors.
During this quarter, Ather Energy also unveiled its new EL platform, which will spearhead its upcoming line of scooters. The cost of the EL platform is expected to be lower than the firm’s existing platform, Co-founder and CEO, Tarun Mehta said.
Edited by Suman Singh