ANI Technologies, which operates under the Ola brand, on Thursday said its consolidated net loss narrowed to Rs 772.25 crore in the fiscal 2023, according to a regulatory filing.
The company posted a consolidated loss of Rs 1,522.33 crore in the financial year (FY) 2022.
The consolidated revenue from operations increased by about 48 per cent to Rs 2,481.35 crore in FY23 from Rs 1,679.54 crore in FY22.
On a standalone basis, ANI Technologies, which comprises a ride-hailing business, reported a narrowing of loss to Rs 1,082.56 crore in FY23 compared to a loss of Rs 3,082.42 crore in FY22.
The revenue from operations of ANI Technologies on a standalone basis increased by about 58 per cent to Rs 2,134.94 crore in FY23 from Rs 1,350.03 crore in FY22.
Ola Mobility business in India posted an operational profit of Rs 250 crore in FY23 from EBIDTA (earnings before interest, taxes, depreciation, and amortisation) loss of Rs 66 crore.
"Business has grown a lot from FY22 to FY23. The Indian mobility business is healthily profitable. Overall also, if we look at the other businesses in the consolidated business, which are financial services, and international mobility, it's also almost at breakeven. There is very significant movement forward both in growth as well as a bottom line improvement," Ola Chairman and managing director Bhavish Aggarwal said.
The company is bullish on the electrification of rides, which has started from two-wheelers in Bangalore and will gradually cover three-wheelers and four-wheelers, he added.
"The next big disruption in this (mobility) industry is going to be electrification on one hand, and premiumisation, improving experience etc on the other hand. Electrification is going to be that big technology vector, which is going to make rides more affordable, extra incomes for drivers so that more drivers are willing to come into the ecosystem and become gig workers," Aggarwal said.
He also said that cash burn is not a sustainable business model and market dynamics no longer support it.
"The capital markets are different. People expect a certain rationality in terms of business building. There is no business model that can survive on free services," Aggarwal said.
Discounts are now more of a tactic, which companies resort to at the time of entry into a new city, but it's not a sustainable structural change in the industry, he added.
Ola has also started leveraging its mobility and financial infrastructure to serve the commerce segment through the government-backed Open Network for Digital Commerce (ONDC).
At the group level, Ola reported a narrowing of operational loss to Rs 29 crore in FY23 from a loss of Rs 291 crore in FY22.
"We have grown 58 per cent. We clearly are the leading player in the market, but what's even more exciting is that we are a very profitable business. In this period (FY23), we made a profit of 250 crore.
"Our focus on sustainable growth has not only fortified our financial standing but has also set the stage for an exciting future of expansion and industry leadership," Ola Mobility CEO Hemant Bakshi said.
The total accumulated loss of ANI Technologies at the group level increased to Rs 20,223.45 crore, and on a standalone basis, it is Rs 19,649.27 crore as of March 31, 2023.
The company has received a total funding of about Rs 31,441 crore.