Indian electric scooter maker Ather Energy reported a sharply narrower first-quarter loss on Monday as strong demand for its Rizta scooters helped cushion the impact of higher costs.
The Rizta scooter maker posted a net loss of 508.7 million rupees ($5.34 million) in the quarter ended June 30, compared with a loss of 1.78 billion rupees a year earlier. Revenue surged about 90% to 12.17 billion rupees while expenses rose 54%.
Vehicle sales jumped 81% in the quarter to 83,173 units.
Conflict in West Asia disrupted crude oil supplies, driving up plastics and polymers costs, the company said.
The narrower loss was driven by strong demand for the family-focused Rizta scooters, which broadened its customer base beyond its traditional performance-focused models.
EBITDA margin improved to 0.8% from negative 15.7% a year ago in the June quarter.
Ather continued expanding its retail and charging infrastructure in Tier-2 and Tier-3 cities, helping boost sales volumes and improve operating leverage, the company said.
Ather has been facing pricing and market-share pressure from rivals Ola Electric, TVS Motor and Bajaj Auto, amid an aggressive price war.
Reuters
