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Growth in %
-58.93%
1 Year
-4.09%
4 Year
49.71%
6 Year
The revenue of the company has grown by 14.4% Compound Annual Growth Rate (CAGR) from FY16 to FY21 mainly due to its growth in metropolitan cities on account of the rise in demand for ride-hailing services among office commuters. In FY21 revenues decreased mainly due to Covid induced lockdowns and restrictions in which social distancing norms and regulations implemented by healthcare and government authorities encouraged citizens to maintain a certain distance from other persons for safety. This has restricted the usage of ride-hailing services such as cabs and bike taxis for daily commutes in India.
Growth in %
49.43%
1 Year
30.90%
4 Year
-5.80%
6 Year
Brand awareness is an important aspect of OLA's business and hence it has been investing consistently in advertisement & marketing. Due to heavy advertisement expenses along with rewards and benefits given to the drivers, the company is making losses regularly since its inception. Due to the reduced advertisement and rewards & benefits, the net losses have narrowed down by 49.0% year-on-year (y-o-y).
Growth in %
52.78%
1 Year
61.48%
4 Year
69.68%
6 Year
The company has been consistently making losses and in order to run its business, the company is raising funds by issuing preferential shares therefore the EPS of the company is decreasing. In FY21, EPS jumped 52.8% on account of the narrowing down of net losses
Growth in %
2.85%
1 Year
-9.27%
2 Year
-13.43%
5 Year
Although the company is raising necessary funds by issuing preferential shares to investors to run its business which increases the book value of the company but the company consistently drains out the funds by incurring losses and hence the book value of the company is in decreasing trend.
Growth in %
77.92%
1 Year
48.68%
3 Year
14.86%
6 Year
Growth in %
65.20%
1 Year
35.85%
3 Year
1.40%
6 Year
OLA has an asset-light business. It provides a platform for the cab owners to connect with the riders and in turn to use its platform the company gives incentives and perks to the drivers. These incentives and perks were on the rise from FY15 to FY17 and as a consequence, the operating profit of the company was declining. From FY18, in order to cut down its expenses, the company has reduced the incentives and perks drastically which improved the operating profit of the company.
Growth in %
-20.95%
1 Year
-0.24%
4 Year
4.05%
6 Year
The company's total assets hover in the range of Rs 4,500.0 Cr to Rs 5,000.0 Cr, out of which major assets are cash and cash equivalents, computer equipment, and motor vehicles of its subsidiary 0LA Fleet Technologies Private Limited. The company every year retires some of its assets (vehicles & computer equipment) and buys as well. From FY19, a trend has been observed where the company has been retiring more of its assets rather than adding and therefore assets are hovering in a range.
Growth in %
42.99%
1 Year
36.81%
3 Year
6.02%
6 Year
Being an asset-light business, the cash flow from the operations of the company is mostly dependent on its net profit and loss. From FY18 onwards the net losses of the company started declining due to which the cash flow from operations is improving.
The company is in a growing phase where it is able to bring in a lot of investors to invest by diluting its equity. The company has raised 75.0% of its capital from equity and 25.0% from debt which has kept the debt-to-equity ratio always less than one.
The company has a very short cash conversion cycle i.e. the company does not have to wait too long for the collection of cash from the customers and at the same time can delay payments to the service providers due to which it has a significant amount of cash and cash equivalents in its balance sheet which the company has been using consistently to invest into its subsidiaries and to do relevant acquisitions for further growth of the business. As a consequence, the current assets are declining and hence the current ratio.
The company is into facilitating commuters by providing them with the platform through its application and hence does not have any significant inventory therefore its quick ratio is the same as the current ratio.
Since FY18 company has started focusing on cutting the cost (reduction in other expenses) and turning profitable as an effect, its EBIT is improving and propelling improvement in its interest coverage ratio
From FY18 onwards company has reduced its driver-related expenses (rewards & incentives) and telephone & communication expenses (due to reduced prices of tariffs) which resulted in an improvement of the operating efficiency of the company at each and every level.
Return ratios of the company have been on the rise due to an increase in its revenues along with improvements in its operating profit margin due to control over expenses and the company buying its assets by raising equity rather than debt.
