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Ola posts operating profit in FY21 ahead of likely share sale
Operating revenue for Ola Cabs alone stood at ₹6896 crore in FY21, a 65% year-on-year decline as the pandemic continued to impact travel throughout the year.
Ola Cabs reported its first-ever operating profit in the year ended 31 March even as revenue growth slowed in a covid-hit year, according to the IPO-bound company’s filings with the ministry of corporate affairs.
The ride-hailing company swung to an operating profit of ₹89.82 crore from an operating loss of about ₹610.18 crore in the previous fiscal year.
Profitability was driven by a sharp fall in expenses for the company’s mobility business, Ola Cabs, to ₹682.8 crore in FY21 from ₹2,683.2 crore in the previous year.
Standalone income of parent ANI Technologies stood at ₹772.68 crore in the year ended March, a 63% drop from ₹2,073 crore in the previous year. Consolidated income, including food-tech venture Ola Foods and financial services platform Ola Financial Services, plunged to ₹1,039.7 crore in FY21 from ₹2,721.3 crore in FY20.
Operating revenue for Ola Cabs alone stood at ₹689.6 crore in FY21, a 65% decline from the previous year as covid impacted travel.
In September, Ola chief and co-founder Bhavish Aggarwal said that the gross merchandise value (GMV) of Ola Cabs crossed pre-covid levels.
“Our Ola cabs GMV crossed pre-covid levels last week. Recovery from the second wave is three times faster [...] 10 million people used Ola for the first time ever in FY21. Many are moving to autos, taking our auto business to almost 150% of pre-covid levels,” said Aggarwal in a series of tweets.
The ride-hailing industry, which includes cabs, bike taxis, and autos, recorded 71 million trips worth $164 million in January, marking a 63% recovery from pre-pandemic levels, according to estimates by consultant RedSeer Consulting.
By March-end, volume recovery bounced back to 69% of pre-covid levels.
With the second wave of infections that started in March, recovery volumes for the sector were expected to be impacted by 30-40%, Redseer estimated in May.
Mint reported on 31 August that ANI Technologies was onboarding investment bankers in the run-up to its initial public offering. The company is looking to hit the domestic public market by the first quarter of 2022.
Ola is looking to raise between $1.5 billion and $2 billion through the listing next year and is targeting a valuation of almost $18 billion, Mint reported earlier.
In July, Temasek Holdings and Warburg Pincus invested $500 million in ANI Technologies Pvt. Ltd. Founder Aggarwal also participated in the round.
Aggarwal owns 7.9% of the 11-year-old company, according to researcher Tracxn.
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First Published:2 Nov 2021, 03:32 PM IST
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