ANI Technologies Pvt Ltd, the parent company of India’s popular cab-hailing startup Ola, has reported a notable financial performance for the fiscal year ended March 31, 2023 (FY23). With a substantial decrease in consolidated net loss and a robust increase in sales, the company showcases resilience and growth in a competitive market. Let’s delve into the key financial highlights, segment-wise performance, and the broader implications for Ola in the evolving landscape.
ANI Technologies witnessed a remarkable 49.2% decline in its consolidated net loss, reaching INR 772.2 Cr in FY23 compared to INR 1,522.3 Cr in the previous fiscal year. Simultaneously, the company experienced a significant surge in sales, marking a 42% year-on-year increase to INR 2,799.3 Cr in FY23 from INR 1,970.4 Cr in FY22. These figures underline the company’s strategic initiatives and its ability to navigate challenges in the competitive ride-hailing industry.
Cab-Hailing Business Performance
The core cab-hailing business of ANI Technologies, represented by Ola, reported robust financials for FY23. Sales witnessed an impressive 63% year-on-year surge, reaching INR 1,987.5 Cr from INR 1,220 Cr in FY22. Concurrently, the net loss for this segment declined significantly by 64.8%, settling at INR 1,082.5 Cr in FY23, compared to INR 3,082.4 Cr in the preceding fiscal year. The positive trend in Ola’s financials signals operational efficiency and improved market positioning.
Comparison with Uber India
In a comparative analysis with its key rival, Uber India, Ola outperformed in terms of net sales growth. While Uber India saw a 54% rise in net sales to INR 2,666.1 Cr in FY23, Ola’s sales surpassed this, reaching INR 2,799.3 Cr. However, it’s worth noting that Uber India’s loss grew by 58% to INR 311.3 Cr, whereas Ola’s net loss significantly decreased, showcasing a better financial outcome.
Segment-wise Analysis
- Ola Fleet Technologies:
- Ola Fleet Technologies, responsible for fleet management, faced a decline in sales by 56.5%, amounting to INR 189.9 Cr in FY23 from INR 437.5 Cr in the previous fiscal year.
- Despite the decrease in sales, the segment demonstrated resilience by narrowing its loss by 17% to INR 387.6 Cr in FY23 compared to INR 467.9 Cr in FY22. This showcases the company’s ability to optimize costs and enhance operational efficiency.
- Ola Financial Services:
- Ola Financial Services, the fintech arm running OlaMoney, reported a decline in operating revenue by 22%, settling at INR 85.5 Cr in FY23 from INR 110 Cr in FY22.
- Notably, the financial services entity slipped into the red, recording a net loss of INR 54.6 Cr in FY23. This contrasts with the profit of INR 8.6 Cr in FY22, emphasizing the challenges and volatility in the fintech sector.
Strategic Moves and Future Outlook
In November last year, Ola Cabs announced its intention to join the Open Network for Digital Commerce (ONDC), signaling a diversification into last-mile delivery services. Moreover, the recent filing of the draft red herring prospectus (DRHP) by Ola Electric for its upcoming IPO suggests the company’s pursuit of substantial funds for expansion and innovation.
ANI Technologies’ impressive financial performance in FY23, marked by a significant reduction in net loss and substantial sales growth, reinforces Ola’s position in the competitive ride-hailing industry. While challenges persist, particularly in Ola Financial Services, the overall trajectory indicates strategic resilience and adaptability. As Ola Electric gears up for its IPO, the financial health of the parent company becomes crucial, setting the stage for Ola’s continued growth and innovation in India’s rapidly evolving transportation and mobility sector.
