Okinawa Autotech Experiences 87% Revenue Decline in FY24
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Synopsis
Okinawa Autotech, a homegrown electric two-wheeler manufacturer, has reported an 87% revenue decline in FY24, with losses of Rs 52 crore amidst declining sales and market share.
Key Takeaways
- Revenue dropped by 87% to Rs 182 crore.
- Loss of Rs 52 crore reported in FY24.
- Sales fell from 95,931 units to 20,873 units.
- Market share decreased from 13.17% to 2.20%.
- Current fiscal shows no improvement with only 3,548 units sold.
New Delhi, April 14 (NationPress) The indigenous electric two-wheeler firm Okinawa Autotech has reported a staggering 87% decline in revenue for FY24.
The company's operational revenue plummeted to merely Rs 182 crore in FY24, down from Rs 1,144 crore in the previous fiscal year, as per its most recent financial disclosures.
For FY24, Okinawa also faced a loss of Rs 52 crore, a stark contrast to the Rs 166 crore in earnings before interest, taxes, depreciation, and amortisation (EBITDA) recorded in FY23.
The company’s operating margins and return on capital employed (ROCE) were severely impacted, with the EBITDA margin dropping to (-25.8%) and ROCE plummeting to (-102%).
For every rupee earned, Okinawa spent Rs 1.38 in FY24, according to its financial statements.
Total sales nosedived from 95,931 units in FY23 to just 20,873 units in FY24. This dramatic decline is also evident in its market share, which fell from 13.17% to 2.20%.
The current fiscal year (FY25) hasn't shown any significant recovery, with only 3,548 units sold thus far, amounting to a mere 0.31% market share.
Nonetheless, the company has attempted to reduce its expenses in light of declining revenues. Procurement costs were slashed by 80% to Rs 171 crore, employee costs decreased by 16% to Rs 26 crore, and advertising expenditures were cut by 88% to Rs 4 crore.
Despite these efforts, total expenses for FY24 stood at Rs 251 crore, a decrease from Rs 991 crore the previous year. By the end of FY24, Okinawa's total current assets were valued at Rs 276 crore.
Market analysts note that Okinawa has been struggling to cope with increasing competition and evolving market demands.
Analysts attribute Okinawa's challenges to various factors, including fire-related safety issues, stricter regulatory requirements, and a significant erosion of consumer trust.
"The EV market in India is rapidly maturing, and companies face intensified pressure to uphold product quality, innovate regularly, and comply with safety standards," remarked one analyst.
