Joy E-Bike's scale neared Rs 200 Cr in FY22, profits grew 4.5X

Wardwizard Innovations & Mobility Limited is one of the leading auto manufacturing companies in the electric vehicle segment under the brand name Joy e-bike. On the back of its rising demand for electric two wheelers, the firm saw its scale grow over four times during the fiscal year ending in March 2022.

The mobility company witnessed a 4.69X jump in scale to Rs 184.56 crore during FY22 from Rs 39.31 crore in FY21, according to financial statements filed with the Registrar of companies.

The sale of Joy e-bikes was the main source of revenue contributing 97.94% of the total operating revenue which increased 7.5X to Rs 180.76 crore in FY22. The sale of services —which includes warranty claims — contributed Rs 3.57 crore to the total collections during this period.

Being an EV manufacturer, the cost of materials for electric vehicle manufacturing became the largest cost center, accounting for 91.6% of the total expenses. This cost surged 4.98X to Rs 158.53 crore in FY22, significantly up from Rs 31.82 crore in FY21.

Employee benefits expenses are the next largest cost center for the company followed by the cost of materials. This cost jumped  2.03X to Rs 6.13 crore in FY22 from Rs 3.01 crore in FY21.

The company added another Rs 2.27 crore and Rs 1.96 crore on legal/professional fees and advertisement costs which pushed the overall expenditure of the company 4.69X to Rs 172.99 crore in FY22 from Rs 36.88 crore in FY21.

With a growth of nearly 5X during the last fiscal year, Joy e-bikes maintained its profitability which increased 4.5X to Rs 8.47 crore in FY22 from Rs 1.87 crore in FY21.

On the ratios side, the ROCE and EBITDA margin of the company registered at 19.44% and 7.82% during the last fiscal year. On a unit level, the company spent Re 0.94 to earn a single unit of operating revenue.

With an increasing demand in electric vehicles and the government also leaning towards a green future, companies like Wardwizard Innovations & Mobility are bound to ride the wave, with their next fiscal having even better sales. Numbers already indicate this: between April and November 2022, the company sold more than 25,000 units, of which November contributed over 7,000 units — highest monthly sales ever.