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Shares of Electrical two-wheeler manufacturer Ather Energy Ltd. surged as much as 16% on Monday, August 4, despite reporting another net loss during the June quarter.
Net loss for the quarter stood at ₹178 crore, which is nearly at the similar level of ₹183 crore that it reported during the same quarter last year. However, net loss figure narrowed from the March quarter loss of ₹234 crore.
Revenue for the quarter increased by 79% on a year-on-year basis to ₹645 crore, but that figure was 5% lower when compared to the March quarter.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹134 crore, which increased from the ₹127 crore loss last year, but narrowed from the ₹172 crore loss in March.
The quarter had a higher other income of ₹28 crore from ₹8 crore last year, which also contributed to the narrowing of the net loss.
Retail volumes increased by 1% sequentially and more than doubled from last year, increasing by 2.5x. Gross margins also remained flat at around 80% both sequentially, as well as year-on-year.
Last week, brokerages like Nomura and HSBC had initiated coverage on Ather Energy with a "buy" recommendation and with price targets of ₹458 from ₹450 respectively. Nomura expects EVs to drive the next decade of growth for the two-wheeler industry, while HSBC believes that the increase in EV penetration has a significant upside for both earnings and valuations.
Shares of Ather Energy are trading 16% higher after the earnings announcement at ₹414.65.
Net loss for the quarter stood at ₹178 crore, which is nearly at the similar level of ₹183 crore that it reported during the same quarter last year. However, net loss figure narrowed from the March quarter loss of ₹234 crore.
Revenue for the quarter increased by 79% on a year-on-year basis to ₹645 crore, but that figure was 5% lower when compared to the March quarter.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹134 crore, which increased from the ₹127 crore loss last year, but narrowed from the ₹172 crore loss in March.
The quarter had a higher other income of ₹28 crore from ₹8 crore last year, which also contributed to the narrowing of the net loss.
Retail volumes increased by 1% sequentially and more than doubled from last year, increasing by 2.5x. Gross margins also remained flat at around 80% both sequentially, as well as year-on-year.
Last week, brokerages like Nomura and HSBC had initiated coverage on Ather Energy with a "buy" recommendation and with price targets of ₹458 from ₹450 respectively. Nomura expects EVs to drive the next decade of growth for the two-wheeler industry, while HSBC believes that the increase in EV penetration has a significant upside for both earnings and valuations.
Shares of Ather Energy are trading 16% higher after the earnings announcement at ₹414.65.
