EV manufacturer Greaves Electric eyes first annual net profit in FY25

Electric vehicle (EV) manufacturer Greaves Electric Mobility (GEMPL), which is a subsidiary of Greaves Cotton, is likely to post its first annual net profit of Rs 194.4 crore in FY25.

The company is expecting to see net losses of Rs 37.1 crore and Rs 18.5 crore in FY23 and FY24, respectively, according to its internal projections, which have been reviewed by Business Standard. Greaves Electric manufactures electric two-wheelers under the Ampere brand and three-wheelers under the Ele and Teja brands.

These projections comprise consolidated profitability statements and balance sheets from FY23 to FY27.

They were provided by Greaves Electric’s management to Delhi-based valuer Subodh Kumar last year to calculate the correct valuation of the company. Kumar put the equity value of the company at Rs 1,951.19 crore.

“Our value analysis is based on the information available to us by the company management and the information obtained by us from the public domain,” he stated in his valuation report.

In FY21, GEMPL earned Rs 176.31-crore revenue from operations and posted a net loss of Rs 24.04 crore. In FY22, the company earned Rs 522.31-crore revenue from operations and posted a net loss of Rs 42.86 crore.

Sanjay Behl, executive director (ED) and chief executive officer (CEO), GEMPL, told Business Standard: “In FY22, GEMPL made higher investments in people, infrastructure, research and development for future growth. The company’s market share at the end of FY22 was at 10 per cent and the brand featured within the top-3 players. The company’s consolidated revenues in FY22 tripled to Rs 522 crore.”

In FY23 and FY24, the company is expecting to earn revenue from operations of Rs 1,000 crore and Rs 2,015.8 crore, respectively, according to projections submitted to Kumar.

When asked about GEMPL aforementioned projections, Behl replied that the company does not offer any future guidance.

“GEMPL has been profitable from Q4 of FY22 till Q2 of FY23. In Q3 of FY23, profitability was impacted as production was halted for a few weeks to meet the AIS-156 Phase-1 battery standards. This we met before the deadline,” Behl added.

The Phase-1 of AIS-156 battery testing standards was implemented from December 1, 2022.

Ampere’s sales jumped from 12,470 units in 2021 to 79,860 units in 2022, according to Vahan registration data. In comparison, India’s total e-two-wheeler sales jumped from 138,887 units in 2021 to 670,965 units in 2022.

“Ampere grew by 540 per cent while the e-two-wheeler industry grew by 383 per cent,” Behl added.

The e-two-wheeler category grew in CY22 as under the new FAME II scheme, the subsidy amount on batteries was increased from Rs 10.000 Per kWh to Rs 15,000 per kWh, he said.

“The growth of Ampere was propelled by the setting up of the new manufacturing facility at Ranipet. This was to meet the increase in demand. It opened dealership networks across India, amid the growing trust enjoyed by the Ampere brand,” he added.