Synopsis
Kinetic Green, an electric vehicle manufacturer, saw its losses rise significantly in FY24, reaching Rs 77 crore compared to Rs 7 crore the previous year. Key factors include soaring advertising costs and increasing employee expenses, indicating serious financial challenges despite a slight decrease in procurement costs.Key Takeaways
- Kinetic Green's losses increased 11 times in FY24.
- Advertising expenses surged 8.2 times.
- Employee benefit costs rose by 52.4 percent.
- Current assets at end of FY24: Rs 169 crore.
- Company holds 1 percent of the electric two-wheeler market.
Mumbai, Feb 27 (NationPress) The electric vehicle manufacturer Kinetic Green has encountered significant financial difficulties in FY24, reporting a staggering increase in losses to Rs 77 crore, an 11-fold rise from Rs 7 crore in the prior fiscal year (FY23).
A primary factor behind the escalating losses was a dramatic rise in advertising costs, which soared 8.2 times to Rs 58 crore in FY24.
Furthermore, employee benefit expenses rose by 52.4 percent, adding additional pressure to the company's financial health.
While procurement remains Kinetic Green's largest expenditure at 62 percent of total costs, it actually saw a decrease of 5.4 percent to Rs 229 crore, according to its financial reports.
Other costs, including finance, transportation, legal, and travel expenses, increased the overall expenditure by 19 percent to Rs 369 crore, up from Rs 310 crore in FY23.
The consolidated financial statement reveals that Kinetic Green's operational revenue fell to Rs 291 crore in FY24 from Rs 301 crore in FY23.
The Pune-based firm recorded an EBITDA margin of (-)20.55 percent, indicating it spent Rs 1.27 to generate every rupee in revenue.
Reports indicate that these figures underscore the substantial financial hurdles the company faces, which currently commands roughly 1 percent of the electric two-wheeler market.
At the close of FY24, Kinetic Green's current assets totaled Rs 169 crore, inclusive of Rs 2.3 crore in cash and bank balance.
To date, Kinetic Green has secured $27 million in funding, with $25 million sourced from Greater Pacific Capital, which possesses a 5.6 percent stake in the company.
The co-founders, Sulajja Firodia Motwani and Ritesh Ramesh Mantri, hold the remaining majority share of 91.7 percent.
Industry reports suggest that the startup must concentrate on enhancing operational efficiency and increasing revenue in the forthcoming years, as its market position remains fragile, despite the robust growth of the electric two-wheeler segment in India.
