Ather Energy Reports Wider Losses and Revenue Decline Ahead of Rs 3,100 Crore IPO
Ather Energy, the electric vehicle (EV) company preparing to raise over Rs 3,100 crore through its initial public offering (IPO), has reported a 22 percent increase in losses, reaching Rs 1,060 crore for the fiscal year 2024 (FY24). This marks a notable deterioration from the previous fiscal year, when the company’s losses were lower.
The company’s operating revenue fell by 1.5 percent year-on-year to Rs 1,753.8 crore in FY24, primarily due to a reduction in government subsidies. Ather Energy explained that the decrease in subsidy led to an increase in the retail price of its electric two-wheelers (E2Ws), with price hikes ranging from Rs 20,434 to Rs 30,285. This price adjustment contributed to the decline in revenue from operations.
In FY23, Ather Energy had experienced a remarkable 335 percent growth in operating revenue, reaching Rs 1,780.9 crore. However, the fiscal year 2024 saw a shift in financial dynamics.
The company’s expenditures in FY24 were significant, with a major portion allocated to the cost of materials consumed, which rose 2.7 percent to Rs 1,579.2 crore. Employee benefit expenses also increased by 10.3 percent to Rs 369.2 crore, up from Rs 334.8 crore in FY23.
According to Ather Energy’s draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI), the upcoming IPO will feature a fresh issue of Rs 3,100 crore and an offer for sale (OFS) component consisting of 2.2 crore equity shares. The proceeds from the IPO are earmarked for establishing a new electric two-wheeler manufacturing facility and enhancing research and development efforts.
Recently, Ather Energy secured $71 million in funding led by the National Investment and Infrastructure Fund (NIIF), bringing its valuation to $1.3 billion and earning it unicorn status. This funding, combined with over $125 million raised in recent months, underscores the company’s strategic push for growth and expansion despite current financial challenges.
