EV maker Okinawa's revenue drops 87 pc in FY24 amid falling sales

The company's revenue from operations slipped to just Rs 182 crore in FY24 from Rs 1,144 crore in the previous financial year, according to its latest financials.

Okinawa also posted a loss of Rs 52 crore in FY24, a sharp contrast to the Rs 166 crore of earnings before interest, taxes, depreciation and amortisation (EBITDA) it had recorded in FY23.

The company's operating margins and return on capital employed (ROCE) also took a major hit, with EBITDA margin falling to (-)25.8 per cent and ROCE to (-)102 per cent.

For every rupee Okinawa earned in FY24, it spent Rs 1.38, as per its financials.

The company's total sales crashed from 95,931 units in FY23 to just 20,873 units in FY24. This sharp drop also reflected in its market share, which declined from 13.17 per cent to 2.20 per cent.

The current fiscal year (FY25) hasn't shown much improvement either, with only 3,548 units sold so far, translating to a mere 0.31 per cent market share.

However, the company tried to cut down its expenses as revenues dropped. Its procurement costs reduced by 80 per cent to Rs 171 crore, employee costs dropped 16 per cent to Rs 26 crore, and advertising spend was slashed by 88 per cent to Rs 4 crore.

Still, total expenses stood at Rs 251 crore in FY24, down from Rs 991 crore in the previous year. By the end of FY24, Okinawa had total current assets worth Rs 276 crore.

Okinawa has been struggling to keep up with rising competition and changing market expectations, market analysts noted.

Analysts say Okinawa's downfall stems from multiple issues, including fire-related safety concerns, stricter regulatory norms, and a significant loss of consumer trust.

"The EV market in India is now maturing, and companies are under more pressure than ever to maintain product quality, innovate consistently, and meet safety standards," an analyst mentioned.