TORONTO - Electrovaya Inc. (NASDAQ:ELVA), (TSX: ELVA), a manufacturer of lithium-ion battery technology, has reported robust financial results for the first quarter of fiscal year 2024, which ended on September 30, 2023. The company announced a 41% increase in revenue and a significant improvement in gross margins, which now stand at 29.2%.
The company's revenue for Q1 FY2024 reached $12.1 million, up from $8.6 million in the same quarter of the previous year. This growth was accompanied by an increase in adjusted EBITDA to $0.6 million, marking the fourth consecutive quarter of positive EBITDA for Electrovaya. The improved financial performance is attributed primarily to higher sales and better gross margins, which have notably surpassed 30% for battery systems.
Electrovaya's financial position has also strengthened, with current assets rising to $24.8 million as of December 31, 2023, from $17.5 million a year prior. The company's equity increased to $7.5 million, up from a deficit the previous year.
In the business domain, Electrovaya has made strategic moves, including a new supply agreement with two leading OEMs in the material handling sector and establishing a partnership with one of the largest Japanese trading houses. These developments are expected to enhance the company's sales reach and support its revenue growth.
The company is also progressing with its plans for a battery gigafactory in Jamestown, NY, having completed engineering and environmental studies. While the company is moving forward with securing non-dilutive financing for the project, substantial investments will only be made once the financing is finalized.
Looking forward, Electrovaya has reaffirmed its fiscal 2024 guidance, projecting revenues between $65 and $75 million, which would represent a significant year-over-year growth. This optimistic outlook is based on the expanded supply agreement, increasing order backlogs, and new products designed for emerging sectors.
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