The following is a summary of the Electrovaya Inc. (ELVA) Q2 2024 Earnings Call Transcript:
Financial Performance:
Electrovaya reported a 26% increase in Q2 revenue, totaling $10.7 million, boosted by gross margins rising to 35%.
The adjusted EBITDA grew to $1.5 million and the company made an operating profit of $700,000.
The company's working capital increased from $16 million to $22 million, strengthening their ability to support business growth.
Electrovaya's total debt position stood at $18 million as of March 31, 2024, a slight increase from the prior year.
Business Progress:
Electrovaya has signed a new supply agreement with Sumitomo Corporation Power & Mobility, bolstering business stability.
The company is actively involved in R&D programs with two major bus Original Equipment Manufacturers (OEMs).
They are working on developing high voltage battery systems for sectors such as defense, mining, and hybrid applications.
Despite potential delays at customer distribution centers, Electrovaya projects revenue growth in the range of $65 million to $75 million for the remainder of the fiscal year.
The company is engaging in negotiations with several banks to refinance within this fiscal year, successfully reducing the cost of capital.
A capital raising project is underway to expand manufacturing and cell assembly operations in Jamestown, NY, all while keeping overhead and operational costs as low as possible.
By 2025, Electrovaya still anticipates material handling to dominate their revenue, even though they are exploring expansion into other vertical markets.
R&D developments include the creation of a proprietary ceramic ionically conducting material and plans for a more detailed reveal of their solid-state battery at Battery Technology Day.
The company is seeking to automate segments of their production process to enhance efficiency, a strategic response to a weaker than expected market for electric buses.
More details: Electrovaya IR
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