Highlights
Ampere’s Revenue Decline in the Electric Vehicle Sector
In a significant progress within the electric vehicle sector,Ampere has reported an astonishing 46% drop in its revenue for fiscal year 2024. This decline follows two years of substantial growth during 2022 and 2023. The primary reason for this downturn is a concerning nearly 60% decrease in scooter sales, which has resulted in losses escalating more than tenfold. According to consolidated financial reports, Ampere’s operational revenue fell from ₹1,124 crore in FY23 to just ₹612 crore in FY24.
Overview of Company Operations
Operating under greaves Electric mobility, Ampere focuses on manufacturing electric scooters and three-wheeled vehicles. In fiscal year 2024:
- Scooter Sales: Constituted about 70.5% of total operating income but saw a drastic reduction of approximately 59%, leading to revenues from this segment plummeting to merely ₹432 crore.
- Three-Wheeler Sales: Experienced remarkable growth during this period—tripling their production output and generating revenues amounting to ₹178 crore.
Diversification Efforts and revenue Improvement
To strengthen its core business amid these challenges,Ampere also generated supplementary income through:
- Scrap sales totalling ₹2 crore
- Non-core activities contributing an additional ₹29 crore
Consequently,total revenue for FY24 reached ₹641 crore compared to last year’s figure of ₹1,159 crore.
Expenditure Analysis
Material costs accounted for a significant portion—61%—of Ampere’s overall expenses. Even though these costs decreased by around 40%, they still amounted to approximately ₹526 crore due to lowered production levels. Additionally:
- Employee benefit expenditures rose by roughly 48.5%, reaching ₹101 crores due to workforce expansion.
- Marketing initiatives alongside legal fees and warranty claims substantially impacted financial outcomes.
Total expenditures were reported at ₹857 crores for FY24 compared with last year’s figure of ₹1,172 crores.
Exclusions from Financial Performance Review
A notable one-time expense totalling ₹477 crores was excluded from net loss calculations as it does not relate directly to ongoing financial obligations.
Summary of Financial Performance
The combination of reduced operational capacity coupled with rising employee benefit costs resulted in losses surging nearly elevenfold—totaling ₹215 crores for FY24 compared with just ₹20 crores recorded in FY23. Notably:
- Return on capital employed (ROCE) faced a sharp decline at -45.4%.
- EBITDA margins also dropped considerably at -27.46%.
By the end of FY24, the expense-to-income ratio stood at approximately £1.40 while total current assets—including cash reserves amounting to £62 crores—were reported at £352 crores total.
A Competitive Landscape Overview
Ampere faces intense competition not only from Ola Electric but also established manufacturers such as Hero MotoCorp, Bajaj Auto, and TVS Motor Company—all presenting considerable challenges for its growth trajectory. However, effective execution of its parent company’s plans regarding an IPO related to its mobility division could provide strategic advantages moving forward. Should any setbacks or delays arise concerning this IPO, Ampere may face tough decisions as it navigates through these challenging market conditions.