Ather’s FY22 Loss Widens Despite 5.1X Revenue Surge
- ByStartupStory | September 9, 2023
Electric scooter manufacturer Ather Energy recently disclosed a widened loss for the financial year 2021-22, citing escalating expenses that surpassed revenue growth. The company reported a loss of Rs 344.1 crore for the fiscal year ending on March 31, 2022, which marked a significant increase from the previous fiscal year’s loss of Rs 233.3 crore in FY21.
Despite the challenges posed by supply constraints on essential components that affected the electric vehicle sector between 2020 and 2022, Ather managed to achieve a substantial growth in sales. However, the company revealed that it could only fulfill approximately 50% of the total orders received during the fiscal year.
Ather’s financial report for FY22 indicated a total income of Rs 413.9 crore, compared to Rs 83.3 crore in FY21. Meanwhile, expenses surged to Rs 718.2 crore, marking a 2.4X increase over the fiscal year 2021-22. The major cost center for Ather during this period was the cost of materials consumed, which encompassed expenses related to raw materials and components used in production.
In an interesting strategic shift, Ather has transitioned from a direct-to-consumer (D2C) model to an approach where dealerships manage a majority of its 34 experience centers. This shift is aimed at reducing costs and facilitating a more rapid expansion. It marks a departure from the company’s previous D2C model and aligns with the broader trend in the industry.
Follow Startup Story
Related Posts
