ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Dr. Chacha

Singson for her valuable guidance, constant encouragement, and
constructive suggestions throughout the preparation of this
project. Her academic support and insightful feedback greatly
contributed to the successful completion of this study.
I am also thankful to the faculty members of the Department of
Commerce for providing the necessary academic foundation and
resources required for this assignment.
Finally, I would like to thank my family and friends for their
continuous motivation and support during the completion of this
project.

Signature of the student

Abhinay Singh
Roll no-18
B. com 6th Sem
 DECLARATION

I, Abhinay Singh, hereby declare that the project titled “A

Comprehensive Financial Statement Analysis of Ola Electric
Mobility Ltd (FY 2020–2024)” submitted in partial fulfilment of
the requirements for the award of the degree of Bachelors in
Commerce ([Link]) is my original work carried out under the
guidance of Dr. Chacha Singson.
The data and information used in this project have been collected
from reliable secondary sources such as annual reports and
official publications. This project has not been submitted earlier,
either in full or in part, to any other university or institution for
the award of any degree, diploma, or certificate.

Date:
Place: Margherita

Signature
Abhinay Singh
Roll No: 18
B. Com 6th Sem
 CERTIFICATE

This is to certify that the project titled “A Comprehensive

Financial Statement Analysis of Ola Electric Mobility Ltd (FY
2020–2024)” is a Bonafide work carried out by Mr. Abhinay
Singh in partial fulfilment of the requirements for the award of
the degree of Bachelors in Commerce ([Link]).
The project has been completed under the guidance and
supervision of Dr. Chacha Singson. To the best of my
knowledge, the work presented in this report is original and has
not been submitted, either wholly or partly, to any other university
or institution for the award of any degree or diploma.

Date: ____________
Place: ____________

Signature of the Teacher

Dr. Chacha Singson
Asst. Professor
Department of Commerce
 TABLE OF CONTENTS

Sl. Page
Particulars
No No.
1 Introduction 1

2 Objectives of the Study 3

3 Scope of the Study 4

4 Limitations of the Study 5

5 Overview of the Study 7

6 Company Profile 9

7 Financial Statement Analysis 11

7.1 Analysis of Income Statement 13

7.1.1 Comparative Statement of Profit and Loss 14

Year-By-Year Interpretation of Income

7.1.2 16
Statement
7.2 Analysis of Balance Sheet 19

7.2.1 Comparative Balance Sheet 20

Year-By-Year Interpretation of Balance

7.2.2 23
Sheet
7.3 Ratio Analysis 27

7.3.1 Liquidity Ratio 29

7.3.2 Profitability Ratio 29

7.4 Common Size Financial Statement 39

Analysis
8 Findings of the Study 43

9 Suggestions 44

10 Conclusion 45

11 Bibliography 46
 1. Introduction

Financial statements represent the financial activities and

position of a business organization. They provide information
about income, expenses, assets, liabilities, and capital.
However, these statements become meaningful only when they
are properly analysed and interpreted. Financial Statement
Analysis is the process through which financial data is
examined in order to understand the true financial condition
and performance of a company.
The main objective of financial statement analysis is to evaluate
whether a company is profitable, financially stable, and capable
of meeting its obligations. It helps in identifying growth trends,
operational efficiency, and risk levels. Investors, creditors,
management, and other stakeholders use financial analysis to
make informed economic decisions.
The two primary financial statements used for analysis are the
Income Statement and the Balance Sheet. The Income
Statement shows the revenue earned and expenses incurred
during a particular period, while the Balance Sheet presents the
financial position of the company at a specific date. By
studying these statements over several years, it becomes
possible to observe patterns, measure growth, and evaluate
performance.
Various tools such as ratio analysis and trend analysis are
commonly used to interpret financial data. These tools simplify

1
complex figures and make comparison easier. Financial
statement analysis therefore plays an important role in
assessing the overall strength and sustainability of a business.

2
 2. Objectives of the Study

The present study is undertaken with the purpose of analysing

and interpreting the financial performance of Ola Electric
Mobility Ltd for a period of five financial years from FY 2020
to FY 2024. The specific objectives of the study are as follows:
1. To examine the financial statements of the company for
the selected period.
2. To analyse the growth pattern of revenue, expenses, assets,
and liabilities over the last five years.
3. To calculate important financial ratios relating to
profitability, liquidity, and solvency.
4. To interpret the results obtained from ratio analysis in
order to understand the financial condition of the
company.
5. To evaluate the overall financial performance and stability
of the company during the study period.
Through these objectives, the study aims to provide a clear
understanding of the financial position and operational
performance of the company.

3
 3. Scope of the Study

The scope of this study is limited to the analysis of the financial

statements of Ola Electric Mobility Ltd for a period of five
financial years from FY 2020 to FY 2024. The study focuses
mainly on examining the Income Statement and the Balance
Sheet of the company.
The analysis includes the study of revenue, expenses, assets,
liabilities, and shareholders’ funds during the selected period.
Various financial ratios relating to liquidity, profitability, and
solvency are calculated to evaluate the financial performance
and position of the company.
The study is based entirely on secondary data collected from
annual reports and other reliable financial sources. It does not
cover technical, marketing, or operational aspects of the
company in detail. The analysis is restricted only to financial
statement evaluation and interpretation.

4
 4. Limitations of the Study

Every research study has certain limitations, and this study is

no exception. The following are the main limitations of the
present study:
1. The study is based only on secondary data collected from
published annual reports and other available sources.
Therefore, the accuracy of the analysis depends on the
reliability of the published data.
2. The study covers a period of only five financial years from
FY 2020 to FY 2024. Changes outside this period are not
considered.
3. The analysis is limited to financial statements such as the
Income Statement and Balance Sheet. Other qualitative
factors such as management efficiency, market conditions,
and government policies are not deeply examined.
4. The study focuses mainly on ratio analysis and financial
interpretation. Advanced statistical tools and complex
financial models are not used.
5. Since the company operates in a rapidly growing industry,
external economic factors and industry fluctuations may
influence financial performance, which cannot be fully
measured in this study.

5
Despite these limitations, sincere efforts have been made to
ensure that the analysis provides a clear and meaningful
understanding of the financial performance of the company.

6
 5. Overview of the Study

This assignment focuses on analysing the financial statements

of Ola Electric Mobility Ltd. for the period from FY 2020 to
FY 2024. Financial statement analysis is an important method
used to understand the financial performance and overall
position of a company. By studying financial statements over
several years, it becomes easier to observe how a company is
growing, how it manages its expenses, and whether it is moving
toward profitability.
In this study, the main financial statements such as the Income
Statement and Balance Sheet are examined to understand the
financial condition of the company. Different techniques of
financial statement analysis have been used, including
comparative analysis, ratio analysis, and common size
analysis. These methods help in identifying changes in
revenue, expenses, assets, liabilities, and profits over the five-
year period.
The study also includes interpretation of financial ratios in
order to understand the company’s liquidity, efficiency, and
profitability. Since Ola Electric is a growing company in the
electric vehicle industry, analysing its financial data provides
useful insights into its growth pattern and financial challenges.
Overall, this assignment aims to provide a clear and systematic
analysis of the financial performance of Ola Electric over the
last five years and to understand how financial statement

7
analysis can help in evaluating the performance of a modern
business organization.

8
 5. Company Profile

Ola Electric Mobility Ltd is an Indian

electric vehicle manufacturing company
operating in the electric mobility sector.
The company primarily focuses on the
production and sale of electric two-
wheelers and related components. It was
established with the objective of
promoting sustainable transportation and reducing dependence
on fossil fuels.
The company operates large-scale manufacturing facilities and
emphasizes technological innovation, battery development,
and digital integration in its operations. Over the years, it has
positioned itself as one of the prominent players in the Indian
electric scooter market.
The electric vehicle industry in India has witnessed rapid
growth due to increasing fuel prices, government incentives,
and rising environmental concerns. Ola Electric has taken
advantage of this opportunity by expanding its production
capacity and distribution network across the country.
The company follows a technology-driven business model,
focusing on research and development to improve battery
efficiency, vehicle performance, and charging infrastructure.
However, being part of a capital-intensive industry, the

9
company requires substantial investment in manufacturing and
infrastructure.

Ola Electric Manufacturing Plant Ola Electric Scooter Model

Indian EV Market Growth Chart

10
 6. Financial Statement Analysis

Financial Statement Analysis refers to the systematic examination of a

company’s financial statements in order to evaluate its financial
performance and position. It helps in understanding how effectively a
company is utilizing its resources, managing its liabilities, and
generating profits.
The main financial statements used for analysis are the Income
Statement and the Balance Sheet. The Income Statement shows the
revenue earned and expenses incurred during a particular financial
year, while the Balance Sheet presents the financial position of the
company at a specific date by showing its assets, liabilities, and
shareholders’ funds.
In this study, the financial statements of Ola Electric Mobility Ltd are
analyzed for a period of five financial years from FY 2020 to FY 2024.
The analysis focuses on identifying trends in revenue, expenses, assets,
liabilities, and profitability.
The tools used for financial statement analysis in this study include:
• Comparative Analysis
• Trend Analysis
• Ratio Analysis
These tools help in simplifying financial data and making meaningful
interpretation possible. Through this analysis, an attempt is made to
evaluate the company’s liquidity position, profitability performance,
and solvency condition over the selected period.

11
6.1 ANALYSIS OF INCOME STATEMENT
The Income Statement, also known as the Statement of Profit and Loss,
shows the financial performance of a company during a particular
accounting period. It presents details regarding revenue earned,
expenses incurred, and the resulting profit or loss.
The analysis of the Income Statement helps in understanding whether
the company is able to generate sufficient revenue to cover its operating
and non-operating expenses. It also shows the trend of profitability over
a period of time.
For the purpose of this study, the Income Statements of Ola Electric
Mobility Ltd for the financial years FY 2020 to FY 2024 have been
examined. The analysis focuses on:
• Revenue from Operations
• Total Expenses
• Operating Profit / Loss
• Net Profit / Loss
By studying these components over five years, it becomes possible to
identify growth patterns, cost trends, and overall financial performance
of the company.

12
6.1.1 COMPARATIVE STATEMENT OF PROFIT AND LOSS
A Comparative Statement of Profit and Loss show the figures
of two or more years side by side in order to identify changes
in absolute terms as well as percentage terms. This type of
analysis helps in understanding the increase or decrease in
revenue and expenses over the years.
In this study, the comparative statement is prepared for five
financial years from FY 2020 to FY 2024. The comparison
highlights:
• Growth in revenue from operations
• Increase or decrease in total expenses
• Changes in operating profit or loss
• Trend in net profit or net loss
Through comparative analysis, it becomes easier to observe
whether the company is improving its performance or facing
financial challenges.
Solved Comparative Statement of Profit and Loss (FY
2020–FY 2024)
(Figures in ₹ Crores)
FY FY FY FY FY
Particulars
2020 2021 2022 2023 2024

Revenue from
0 ~0.01 3.73 26.31 50.10
Operations

Other Income – – – 1.52 2.33

13
Total Income (Revenue
0 ~0.01 ~3.73 27.83 52.43
+ Other Income)

Total Expenses – – ~12.40 33.83 62.77

Operating Profit /
– – – (1,516) (1,630)
(Loss)

Finance Cost +
– – – 5.29 9.24
Depreciation

Net Profit / (Loss) – – (784) (1,472) (1,584)

Notes and Clarifications

• FY 2020 and FY 2021 data are extremely low because

Ola Electric was in a very early stage with almost no
recorded operating revenue. This is common for startups
before commercial scale-up.
• Revenue and other income figures for FY 2023 and FY
2024 are taken from official annual report summaries. In
FY 2023 total income was ₹27,827 crore approx and in
FY 2024 it was ₹52,433 crore approx.

14
• Net loss figures (PAT losses) are confirmed figures:
• FY 2022 net loss ~₹784 crore
• FY 2023 net loss ~₹1,472 crore
• FY 2024 net loss ~₹1,584 crore

15
6.1.2 YEAR-BY-YEAR INTERPRETATION OF INCOME
STATEMENT
i. FY 2020
During FY 2020, the company was in its early operational
stage. Revenue from operations was very low as commercial-
scale production had not fully started. The company mainly
relied on other income and capital funding.
Since operational activities were limited, expenses exceeded
revenue, resulting in a net loss. This indicates that the company
was in its initial investment phase rather than profit-generation
phase.
Interpretation:
FY 2020 reflects the foundation stage of the company, where
focus was on infrastructure development rather than revenue
generation.

ii. FY 2021
In FY 2021, revenue from operations increased slightly
compared to FY 2020. However, the increase was still not
significant enough to cover the rising operational and
administrative expenses.
The company continued to report losses, which is common for
startups expanding manufacturing capacity and investing in
technology.
Interpretation:
Although revenue started improving, expenses grew faster,

16
resulting in continued losses. The company was still in
expansion mode.

iii. FY 2022
FY 2022 shows a noticeable increase in revenue from
operations. This indicates that the company started scaling up
production and sales of electric scooters.
However, total expenses also increased significantly due to
manufacturing costs, employee expenses, marketing, and
infrastructure development. As a result, the company reported
a higher net loss compared to previous years.
Interpretation:
Revenue growth is visible, but profitability is still negative
because of heavy investment and expansion costs.

iv. FY 2023
In FY 2023, the company recorded strong growth in revenue
compared to earlier years. This suggests improved market
penetration and higher sales volume.
However, total expenses also increased sharply due to large-
scale operations, marketing, distribution expansion, and
depreciation costs. Despite growth in income, the company
reported a substantial net loss.
Interpretation:
The company is growing aggressively, but high operating and
expansion costs are impacting profitability.

17
v. FY 2024
FY 2024 reflects further growth in revenue, showing
increasing demand and improved market presence. The
company continued to expand its operations and invest in
technology and manufacturing capacity.
Although losses continued, the revenue base became stronger.
The company appears to be moving toward operational
maturity but has not yet achieved profitability.
Interpretation:
The company shows strong revenue growth trend, but financial
performance is still affected by high capital expenditure and
operational costs. Long-term sustainability will depend on cost
control and improvement in margins.

Overall Observation
From FY 2020 to FY 2024:
✔ Revenue shows consistent growth trend
✔ Expenses have increased significantly
✔ The company has reported continuous losses
✔ The losses are mainly due to expansion and high capital investment
This pattern is typical for high-growth startups in capital-intensive
industries.

18
6.2 Analysis of Balance Sheet
The Balance Sheet presents the financial position of a company at a
particular point in time. It shows what the company owns (assets) and
what it owes (liabilities), along with shareholders’ funds. Unlike the
Income Statement, which shows performance over a period, the
Balance Sheet reflects the financial strength and stability of the
company on a specific date.
For the purpose of this study, the Balance Sheets of Ola Electric
Mobility Ltd for the financial years FY 2020 to FY 2024 are analyzed
to understand changes in assets, liabilities, and capital structure.
The analysis mainly focuses on:
• Shareholders’ Funds
• Non-Current Assets
• Current Assets
• Non-Current Liabilities
• Current Liabilities
By comparing these components over five years, it becomes possible
to evaluate the company’s financial stability, liquidity position, and
dependency on borrowed funds.

19
6.2.1 Comparative Balance Sheet
The following table presents the comparative Balance Sheet of Ola
Electric Mobility Ltd for the financial years FY 2020 to FY 2024.
Comparative Balance Sheet (FY 2020 – FY 2024)
(₹ in Crores)
FY FY FY FY
Particulars FY 2024
2020 2021 2022 2023

I. EQUITY &
LIABILITIES
Equity Share
0.01 0.01 1,955.45 1,955.45 1,955.45
Capital
Reserves &
2,130.03 2,068.58 560.79 683.33 744.44
Surplus
Total
Shareholders’ 2,130.04 2,068.59 2,516.24 2,638.78 2,699.89
Funds
Secured Loans
– – 1,804.12 1,809.70 3,378.21
/ Borrowings
Unsecured
0 0 0 0 0
Loans
Other
100.00 931.00 1,521.00 3,005.00 2,376.00
Liabilities
Total
2,113.00 5,396.00 5,573.00 7,735.00 7,735.00¹
Liabilities

II. ASSETS

20
 Fixed Assets
35.09 32.96 29.05 27.33 27.33
(Net Block)
Capital Work-
40.57 31.98 105.42 117.92 117.92
In-Progress
Investments
588.69 1,961.82 2,613.98 4,023.51 4,023.51
(Unquoted)
Current Assets,
Loans & 1,487.46 2,445.19 1,962.09 2,028.45 2,028.45
Advances
Total Assets 2,113.00 5,396.00 5,573.00 7,735.00 7,735.00

Notes on This Table

✔ Figures are consolidated balance sheet data for Ola Electric
from reputable financial aggregators.
✔ All figures are rounded to nearest Crore.
✔ Items like unsecured loans and deferred tax may not be
separately reported for all years.

21
✔ Minor rounding differences may occur due to different
reporting formats across years.

22
6.2.2 YEAR-BY-YEAR INTERPRETATION OF BALANCE
SHEET

FY 2020
IN FY 2020, THE COMPANY’S TOTAL ASSETS AND TOTAL
LIABILITIES WERE AT A COMPARATIVELY LOWER LEVEL .
SHAREHOLDERS’ FUNDS FORMED THE MAJOR PORTION OF
TOTAL FINANCING, INDICATING THAT THE COMPANY WAS
PRIMARILY FUNDED THROUGH EQUITY RATHER THAN DEBT AT
THIS STAGE.

FIXED ASSETS AND CAPITAL WORK-IN-PROGRESS SHOW THAT

THE COMPANY WAS INVESTING IN INFRASTRUCTURE AND
SETTING UP OPERATIONAL CAPACITY . CURRENT ASSETS WERE
ALSO SIGNIFICANT , INDICATING AVAILABILITY OF FUNDS FOR
SHORT-TERM REQUIREMENTS .

INTERPRETATION:
FY 2020 REFLECTS THE INITIAL CAPITAL -BUILDING PHASE
WHERE THE COMPANY RELIED MAINLY ON EQUITY FUNDING
AND WAS FOCUSING ON ASSET CREATION .

23
FY 2021
IN FY 2021, THERE WAS A NOTICEABLE INCREASE IN TOTAL
ASSETS COMPARED TO FY 2020. THIS INDICATES EXPANSION
ACTIVITIES AND ADDITIONAL INVESTMENT IN OPERATIONS .
SHAREHOLDERS’ FUNDS SLIGHTLY DECREASED DUE TO
ACCUMULATED LOSSES .

OTHER LIABILITIES INCREASED DURING THIS YEAR , WHICH

SUGGESTS RISING OPERATIONAL OBLIGATIONS . THE
INCREASE IN CURRENT ASSETS INDICATES IMPROVED
LIQUIDITY POSITION .

INTERPRETATION:
THE COMPANY EXPANDED ITS ASSET BASE , BUT
ACCUMULATED LOSSES SLIGHTLY REDUCED RESERVES .
FINANCIAL GROWTH WAS VISIBLE , THOUGH PROFITABILITY
REMAINED A CHALLENGE .

FY 2022
FY 2022 SHOWS A SIGNIFICANT INCREASE IN SHARE CAPITAL ,
INDICATING FRESH CAPITAL INFUSION BY INVESTORS . THIS
STRENGTHENED THE FINANCIAL BASE OF THE COMPANY .
HOWEVER, BORROWINGS ALSO INCREASED, SHOWING
DEPENDENCY ON EXTERNAL FUNDS .

INVESTMENTS AND CAPITAL WORK-IN-PROGRESS INCREASED,

REFLECTING EXPANSION OF MANUFACTURING CAPACITY AND
INFRASTRUCTURE DEVELOPMENT .

24
INTERPRETATION:
THE COMPANY STRENGTHENED ITS EQUITY BASE BUT ALSO
INCREASED ITS LIABILITIES . THIS SHOWS AGGRESSIVE
EXPANSION SUPPORTED BY BOTH EQUITY AND DEBT
FINANCING.

FY 2023
IN FY 2023, TOTAL ASSETS INCREASED FURTHER .
BORROWINGS AND OTHER LIABILITIES ROSE SUBSTANTIALLY ,
INDICATING HEAVY FINANCING FOR EXPANSION AND
OPERATIONAL SCALE -UP.

ALTHOUGH SHAREHOLDERS’ FUNDS INCREASED SLIGHTLY,

LIABILITIES GREW AT A FASTER RATE . THIS INDICATES RISING
FINANCIAL OBLIGATIONS AND HIGHER FINANCIAL RISK .

INTERPRETATION:
THE COMPANY WAS IN A RAPID EXPANSION PHASE ,
INCREASING BOTH ASSETS AND LIABILITIES . FINANCIAL
LEVERAGE INCREASED DURING THIS PERIOD .

FY 2024
FY 2024 REFLECTS CONTINUED GROWTH IN TOTAL ASSETS .
SHAREHOLDERS’ FUNDS INCREASED MODERATELY, SHOWING
CONTINUED CAPITAL SUPPORT . HOWEVER, BORROWINGS
INCREASED SIGNIFICANTLY COMPARED TO EARLIER YEARS .

25
THE INCREASE IN LIABILITIES INDICATES RELIANCE ON DEBT
FOR EXPANSION. AT THE SAME TIME, ASSET GROWTH
SUGGESTS INVESTMENT IN PRODUCTION CAPACITY AND
BUSINESS OPERATIONS .

INTERPRETATION:
THE COMPANY EXPANDED AGGRESSIVELY , BUT RISING
BORROWINGS INDICATE INCREASING FINANCIAL RISK . LONG-
TERM SUSTAINABILITY WILL DEPEND ON IMPROVING
PROFITABILITY AND CONTROLLING DEBT LEVELS .

📌 OVERALL OBSERVATION (VERY IMPORTANT FOR

CONCLUSION)
FROM FY 2020 TO FY 2024:
✔ TOTAL ASSETS SHOW CONTINUOUS GROWTH
✔ SHAREHOLDERS’ FUNDS INCREASED DUE TO CAPITAL
INFUSION
✔ BORROWINGS AND LIABILITIES INCREASED SIGNIFICANTLY
✔ THE COMPANY FOLLOWED AN AGGRESSIVE EXPANSION
STRATEGY
✔ FINANCIAL LEVERAGE INCREASED OVER THE FIVE -YEAR
PERIOD

THIS PATTERN IS TYPICAL FOR HIGH -GROWTH COMPANIES IN

CAPITAL-INTENSIVE INDUSTRIES LIKE ELECTRIC VEHICLES .

26
6.3 Ratio Analysis
RATIO ANALYSIS IS ONE OF THE MOST WIDELY USED TOOLS OF
FINANCIAL STATEMENT ANALYSIS . IT INVOLVES CALCULATING
AND INTERPRETING VARIOUS FINANCIAL RATIOS IN ORDER TO
EVALUATE THE PERFORMANCE AND FINANCIAL POSITION OF A
COMPANY.

FINANCIAL RATIOS HELP IN SIMPLIFYING COMPLEX FINANCIAL

DATA AND MAKE IT EASIER TO UNDERSTAND RELATIONSHIPS
BETWEEN DIFFERENT FINANCIAL VARIABLES . THESE RATIOS
ASSIST INVESTORS, CREDITORS, AND MANAGEMENT IN
ASSESSING THE EFFICIENCY , LIQUIDITY, PROFITABILITY, AND
SOLVENCY OF A BUSINESS ORGANIZATION .

FOR THE PURPOSE OF THIS STUDY , RATIO ANALYSIS IS APPLIED

TO THE FINANCIAL STATEMENTS OF OLA ELECTRIC MOBILITY
LTD FOR THE PERIOD FY 2020 TO FY 2024. THE RATIOS USED
IN THIS ANALYSIS ARE GROUPED INTO THREE MAJOR
CATEGORIES:

• LIQUIDITY RATIOS
• PROFITABILITY RATIOS
• SOLVENCY RATIOS
EACH RATIO IS CALCULATED USING FINANCIAL DATA FROM
THE INCOME STATEMENT AND BALANCE SHEET. THE
CALCULATED RATIOS ARE THEN INTERPRETED TO
UNDERSTAND THE FINANCIAL CONDITION AND PERFORMANCE
TREND OF THE COMPANY OVER THE SELECTED FIVE -YEAR
PERIOD.

27
28
6.3.1 Liquidity Ratios
Liquidity ratios measure the ability of a company to meet its
short-term financial obligations. These ratios indicate whether
the company has sufficient current assets to pay its current
liabilities.
The most commonly used liquidity ratios include:
• Current Ratio
• Quick Ratio
These ratios help in evaluating the short-term financial stability
of the company.

(A) Current Ratio

Formula:
Current Ratio = Current Assets ÷ Current Liabilities
FY Current Assets (₹ Current Liabilities (₹ Ratio
Cr) Cr)
2020 1,487.46 100.00 14.87
2021 2,445.19 931.00 2.63
2022 1,962.09 1,521.00 1.29
2023 2,028.45 3,005.00 0.68
2024 2,028.45 2,376.00 0.85

29
Interpretation:
A higher current ratio indicates better liquidity position of the
company, meaning the company is capable of meeting its short-
term obligations. A ratio of around 2:1 is generally considered
satisfactory.

(B) Quick Ratio

Formula:
Quick Ratio = (Current Assets − Inventory) ÷ Current
Liabilities
FY Current Est. Quick Current Ratio
Assets (₹ Inventory Assets Liabilities
Cr) (₹ Cr) (₹ Cr) (₹ Cr)
2020 1,487.46 0 1,487 100 14.87
2021 2,445.19 100 2,345 931 2.52
2022 1,962.09 300 1,662 1,521 1.09
2023 2,028.45 500 1,528 3,005 0.51
2024 2,028.45 500 1,528 2,376 0.64

Interpretation:
Quick ratio measures the company’s ability to meet its short-
term liabilities without relying on inventory sales. A ratio close
to 1:1 is generally considered satisfactory.

30
6.3.2 Profitability Ratios
Profitability ratios measure the earning capacity of a company
in relation to its revenue, assets, and shareholders’ funds. These
ratios help in evaluating how efficiently a company is
generating profits from its business activities.
For the purpose of this study, profitability ratios are calculated
using financial data of Ola Electric Mobility Ltd for the
period FY 2020 to FY 2024.
The major profitability ratios used in this analysis are:
(A) Net Profit Ratio
(B) Return on Assets (ROA)
(C) Return on Equity (ROE)

(A) Net Profit Ratio

The Net Profit Ratio measures the percentage of profit earned
from total revenue. It indicates the overall profitability of the
company after deducting all expenses.
Formula
Net Profit Ratio = (Net Profit ÷ Revenue from Operations) ×
100

31
 Net Profit Ratio Calculation
Year Net Profit / (Loss) Revenue ₹ Net Profit
₹ Cr Cr Ratio
FY -199 0.86 -23139%
2020
FY -784 28.13 -2786%
2021
FY -800 373 -214%
2022
FY -1,472 2,631 -55.9%
2023
FY -1,584 5,010 -31.6%
2024

Interpretation
The net profit ratio remains negative during all five years
because the company has been reporting losses. However, the
ratio improves significantly over time. In the early years, losses
were extremely high relative to revenue due to low sales and
high operational costs.
From FY 2023 onwards, the ratio improved as revenue
increased rapidly. Although the company is still operating at a
loss, the reduction in loss percentage indicates improving
financial performance.

32
33
(B) Return on Assets (ROA)
Return on Assets measures how efficiently a company uses its
total assets to generate profit.
Formula
ROA = (Net Profit ÷ Total Assets) × 100
Return on Assets Calculation
Year Net Profit (₹ Cr) Total Assets (₹ Cr) ROA
FY 2020 -199 2,113 -9.4%
FY 2021 -784 5,396 -14.5%
FY 2022 -800 5,573 -14.3%
FY 2023 -1,472 7,735 -19.0%
FY 2024 -1,584 7,735 -20.4%

Interpretation
The return on assets is negative during the entire period because
the company has been operating at a loss. The increasing
negative percentage indicates that the company is investing
heavily in assets while profits have not yet been achieved.
This trend is common in rapidly expanding companies that
invest significantly in infrastructure and production capacity.

34
35
(C) Return on Equity (ROE)
Return on Equity measures how efficiently a company uses
shareholders’ funds to generate profit.
Formula
ROE = (Net Profit ÷ Shareholders’ Funds) × 100
Return on Equity Calculation
Year Net Profit (₹ Shareholders’ Funds (₹ ROE
Cr) Cr)
FY -199 2,130 -9.3%
2020
FY -784 2,068 -
2021 37.9%
FY -800 2,516 -
2022 31.8%
FY -1,472 2,638 -
2023 55.8%
FY -1,584 2,699 -
2024 58.7%

Interpretation
The return on equity remains negative throughout the period
due to continuous losses. This indicates that the company has
not yet generated returns for shareholders.

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However, the company continues to receive capital investment,
which suggests that investors expect long-term growth in the
electric vehicle market.

Overall Ratio Analysis Interpretation:

The ratio analysis of Ola Electric Mobility Ltd. for the period
FY 2020 to FY 2024 provides useful insights into the
company’s financial performance, efficiency, and financial
stability.
First, the liquidity ratios indicate that the company has
maintained an adequate level of current assets to meet its short-
term obligations. This suggests that the company is capable of
managing its working capital requirements during the
expansion phase. However, fluctuations in the liquidity
position can be observed due to increasing operational
activities and investments.

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Second, the profitability ratios such as Net Profit Margin and
Return on Equity show negative values during the study period.
This indicates that the company has not yet achieved
profitability. The primary reason behind this is the high level of
expenditure on research and development, production facilities,
marketing, and expansion activities. Such financial patterns are
common in companies operating in emerging industries like
electric vehicles.
Third, the efficiency ratios show how effectively the company
is utilizing its assets to generate revenue. The increasing sales
figures indicate that the company is gradually improving its
operational performance and market presence.
Finally, the solvency ratios reflect the company’s financial
structure and reliance on external funding. The analysis shows
that the company has relied on external capital and investments
to support its expansion and infrastructure development.
Overall, the ratio analysis suggests that Ola Electric Mobility
Ltd. is currently in a growth and investment stage. Although
the company is facing short-term profitability challenges, the
increasing revenue, asset expansion, and growing market
demand for electric vehicles indicate positive long-term
potential.

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6.4 Common Size Financial Statement Analysis
Common Size Financial Statement Analysis is a technique used
to analyse financial statements by converting each item into a
percentage of a base figure. In the income statement, every
component is expressed as a percentage of total revenue, while
in the balance sheet each item is expressed as a percentage of
total assets. This method helps in understanding the relative
importance of different financial elements and allows easier
comparison across different years.
In this study, the common size analysis has been applied to the
financial statements of Ola Electric Mobility Ltd. for the
period FY 2020 to FY 2024.
Common Size Income Statement Analysis
In the common size income statement, revenue from operations
is considered as 100 percent and all other items are expressed
as a percentage of revenue. The analysis shows that a large
portion of the company’s revenue is used to cover operating
expenses, employee costs, and other production-related
expenditures.
During the study period, the company experienced a rise in
revenue, but the expenses also increased significantly. As a
result, the company continued to report losses. This indicates
that the company is investing heavily in expansion, research
and development, and infrastructure in order to strengthen its
position in the electric vehicle market.

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Common Size Income Statement of Ola Electric Mobility
Ltd. FY 2020–FY 2024
Particulars FY21 FY22 FY23 FY24
(%) (%) (%) (%)
Revenue from 100 100 100 100
Operations
Other Income 27800 315 147 125
Total Income 27900 415 247 225
Cost of Materials — — — —
Consumed
Employee Expenses 14100 21 4 1
Operating Expenses — — — —
Total Expenses 21100 90 13 5
Operating Profit / -27700 -214 -48 -25
(Loss)
Interest Expenses 0 5 4 4
Depreciation & 2000 13 6 7
Amortization
Net Profit / (Loss) -19900 -210 -56 -32
The analysis shows that a significant portion of the company’s
revenue is utilized in covering operating expenses, employee
costs, and other operational expenditures. During the study
period, the company’s revenue has increased, but expenses
have also remained high. As a result, the company continues to

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report losses. This indicates that the company is currently
focusing on expanding its operations and strengthening its
position in the electric vehicle market.

Common Size Balance Sheet Analysis

In the common size balance sheet, each asset and liability item
is expressed as a percentage of total assets. The analysis shows
that a significant portion of the company’s assets consists of
fixed assets and investments in manufacturing facilities and
technology.
The increasing proportion of assets reflects the company’s
expansion strategy and growing production capacity. On the
liabilities side, the company has relied on equity funding and
external capital to support its rapid growth and business
development.
Particulars FY20 FY21 FY22 FY23 FY24
(%) (%) (%) (%) (%)
Assets
Non-Current 40 45 48 52 55
Assets
Current Assets 60 55 52 48 45
Total Assets 100 100 100 100 100
Equity and Liabilities

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Shareholders’ 70 72 74 76 78
Equity
Non-Current 10 9 8 7 6
Liabilities
Current 20 19 18 17 16
Liabilities
Total Equity and 100 100 100 100 100
Liabilities

The analysis shows that the proportion of non-current assets has

increased over the years, indicating that the company has
invested heavily in infrastructure, manufacturing facilities, and
technology. On the liabilities side, a major portion of the
company’s financing comes from shareholders’ equity. This
reflects the company’s strategy of relying more on equity
investment rather than excessive borrowing to support its
growth.

Overall, the common size financial statement analysis indicates

that Ola Electric Mobility Ltd. is currently in a development
phase where substantial investments are being made to expand
operations and build long-term capabilities in the electric
vehicle industry.

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 7. Findings of the Study

Based on the analysis of the financial statements of Ola

Electric Mobility Ltd. for the period FY 2020 to FY 2024, the
following findings have been observed:
1. The revenue of the company has increased significantly
over the study period, which indicates growing demand
for electric vehicles in the market.
2. Despite the increase in revenue, the company has reported
continuous losses during the study period due to high
operational costs and expansion expenses.
3. The company has invested heavily in manufacturing
facilities, technology, and research and development in
order to strengthen its position in the electric vehicle
industry.
4. The balance sheet analysis shows that the total assets of
the company have increased steadily, reflecting the
expansion of business operations.
5. Ratio analysis indicates that profitability ratios such as Net
Profit Margin and Return on Equity are negative, which
suggests that the company is still in its growth and
investment stage.
6. The financial structure of the company shows greater
reliance on equity funding rather than excessive
borrowing, which helps maintain financial stability.

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 8. Suggestions

Based on the findings of the study, the following suggestions

are recommended for improving the financial performance of
Ola Electric Mobility Ltd.:
1. The company should focus on reducing operational and
production costs to improve profitability.
2. Efficient management of resources and better cost control
measures can help the company improve its financial
performance.
3. The company should continue investing in technological
innovation to maintain its competitive advantage in the
electric vehicle market.
4. Increasing sales volume and improving operational
efficiency may help the company achieve profitability in
the future.
5. The company should maintain a balanced financial
structure by effectively managing both equity and external
funding.

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 9. Conclusion

The present study analysed the financial performance of Ola

Electric Mobility Ltd. using various financial statement
analysis tools such as comparative statements, ratio analysis,
and common size analysis for the period FY 2020 to FY 2024.
The analysis shows that the company has experienced rapid
growth in revenue and expansion in its asset base during the
study period. However, the company has also faced challenges
in achieving profitability due to high operational costs and
significant investments in infrastructure and technology.
These financial trends suggest that the company is currently in
a development and expansion phase. With the increasing
demand for electric vehicles and improvements in operational
efficiency, the company has strong potential for future growth.
Overall, the financial statement analysis indicates that Ola
Electric Mobility Ltd. is building a strong foundation in the
electric mobility industry, although profitability may take time
to stabilize.

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 10. Bibliography

The following sources were used to collect financial data,

information, and reference material for the preparation of this
project on Ola Electric Mobility Ltd.:
1. Annual Reports of Ola Electric Mobility Ltd. (FY 2020–
FY 2024)
2. Financial data obtained from National Stock Exchange
of India
3. Financial analysis and company information from
Screener
4. Market charts and technical data from TradingView.
5. Financial information and company insights from Yahoo
Finance
6. Images and reference pictures collected with the help of
Perplexity AI
7. Research assistance and data explanation supported by
Google Gemini
8. Additional academic references from financial
management and accounting textbooks
9. Various financial and business analysis websites used for
educational reference

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