BattRE Shows Growth in Electric Two-Wheeler Market

Electric two-wheeler manufacturer BattRE has experienced a resurgence, marking an 18% growth in FY24 after a 6% decrease in FY23. Nonetheless, profits remained stable during the previous fiscal year.

According to financial documents obtained from the Registrar of Companies (RoC), BattRE’s revenue from operations increased to Rs 102.5 crore in FY24, up from Rs 87 crore in FY23.

Revenue Breakdown for BattRE

BattRE is a prominent Indian electric scooter manufacturer producing city, off-road, and hybrid scooters. Sales from these scooters represented 98.5% of total operating revenue, which surged by 18.82% to Rs 101 crore in FY24 compared to Rs 85 crore in FY23. Conversely, service-related income saw a 25% decline, dropping to Rs 1.5 crore during the same timeframe.

Expense Analysis of BattRE

On the expense side, material costs remained the primary expenditure, rising by 10% to Rs 76 crore. Employee benefit expenses also witnessed a significant increase of 25%, reaching Rs 5 crore, while costs associated with discounts escalated fivefold to Rs 5 crore. Transportation costs held steady at Rs 4 crore, with other operational costs contributing an additional Rs 12 crore.

Overall, BattRE’s total expenses climbed 17% to Rs 102 crore in the last fiscal year.

Profitability Metrics

Despite a considerable rise in expenses, BattRE maintained its profit level at Rs 50 lakhs in FY24. The company’s ROCE and EBITDA margin were reported at 478% and 66%, respectively. On a unit basis, BattRE spent Re 1 to generate one rupee in FY24, consistent with the previous fiscal year.

By March 2024, the Jaipur-based firm declared current assets amounting to Rs 32 crore, which includes Rs 1 crore in cash and bank holdings.

Funding and Investment Insights

As reported by various sources within the startup data intelligence sector, BattRE has successfully secured a total funding of $466K to date, with Gajendra Chandel as the leading investor, holding a 5.24% stake in the company. The firm’s founder, Nishchal Choudhary, possesses a 32.84% ownership of the company.

Future Outlook for BattRE

BattRE appears to be positioned as a niche player in the market, but it may need to deliver something invaluable to carve out a larger presence. With product development deadlines shortening drastically within the two-wheeler sector, an outsider may find the company’s current scale and market stance puzzling. A definitive strategy for venturing into E-Cycles could present an opportunity, despite the company’s smaller scale.

Located strategically, BattRE could leverage its position to tap into regional markets, though the effectiveness of this remains to be seen. Encouragingly, the company is not incurring substantial losses and seems capable of sustaining itself while plotting a viable growth strategy. The hope is that it identifies this path promptly, lest it squanders its cleverly crafted tagline, #Don’tBeFuelish.