Ampere, the EV Maker Reports Gross Revenue of Over Rs 500 Crore in FY22
- ByStartupStory | February 22, 2023
Ampere, the electric two-wheeler manufacturer, has become the third largest player in the market in terms of reported scale during the financial year 2022, following Hero Electric and Okinawa. The company has achieved impressive three-fold growth in its gross scale, along with improved economics in the same period. Ampere’s product range includes Primus, Magnus EX, and Zeal EX e-scooters. It has achieved a remarkable 98.8% collection from their sales, while the remaining income is generated from the sale of spare parts and scrap.
As per Ampere’s annual financial statement with the Registrar of Companies (RoC), the company’s gross collection increased significantly from Rs 176.30 crore in FY21 to Rs 522.30 crore in FY22, marking a 2.96X spike. The firm claimed to have sold 79,000 units during the fiscal year 2021-2022. The procurement expenses accounted for around 74% of the total expense, which rose 2.89X to Rs 416.27 crore in FY22. Ampere’s expenditure on employee benefits increased 2X to Rs 27.26 crore. Furthermore, the warranty cost also saw a substantial surge, keeping pace with sales, and rising 4.87X to Rs 20.03 crore.
In FY22, Ampere’s advertising costs rose 1.5X to Rs 14.5 crore, while freight and transportation expenses surged 2.7X to Rs 18.39 crore. The firm’s total cost witnessed a substantial increase of 2.77X, ballooning from Rs 202.60 crore in FY21 to Rs 562.10 crore in FY22.
Ampere’s losses grew by 89% to Rs 45.36 crore in the last fiscal year from Rs 24 crore in FY21. However, the company’s ROCE and EBITDA margins showed improvement, standing at -22.01% and -4.41%, respectively. On a unit level, the company spent 1.08 to earn a single unit of operating revenue. In the electric scooter market, Ampere competes with several players, including Hero Electric, its major competitor, which was the top revenue generator in FY22 with Rs 841 crore. Okinawa and Ather Energy also recorded Rs 822 crore and Rs 408 crore, respectively, in topline during the same period. However, Ola Electric’s FY22 numbers are yet to be disclosed.
Okinawa was the only profitable company among the competitors, with Rs 89.5 crore worth of profit in FY22. On the other hand, Hero Electric and Ather Energy recorded losses of Rs 30 crore and Rs 344 crore, respectively, during the same period. With 15 years of experience and pedigree since its inception as a startup in 2008, and the acquisition of a majority stake by Greaves Cotton in 2018, Ampere is well-positioned to succeed in the market that has taken off since 2020. However, increasing competition may pose a challenge, and investments in marketing and branding could potentially impact its drive to profitability, if that is the company’s target at this stage.
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