Ola Electric reports wider Q1 loss despite revenue growth

Ola Electric Q1 loss: Ola Electric Mobility has posted a larger-than-expected loss for the first quarter of the financial year 2024-25. Ola Electric’s consolidated net loss for the April-June period broadened to Rs 347 crore, compared to Rs 267 crore in the same quarter of the previous year. This announcement is followed by Ola Electric’s stock market debut on August 9, 2024.Ola Electric, a Bengaluru-based electric scooter manufacturer attributed part of the loss to a Rs 23 crore one-time expense. This charge was related to a price reduction on its entry-level e-scooters, which occurred after the government reduced subsidies for electric vehicles.Despite the increased loss, Ola Electric saw a significant revenue boost. Ola Electric’s revenue from operations rose by 32.2 6per cent to Rs 1,644 crore in Q1 FY25, up from Rs 1,243 crore a year earlier. This growth reflects a strong demand for electric scooters.Ola Electric's stock, which closed 2.38 per cent higher at Rs 110.64, has experienced volatility since its recent listing. The shares have dropped 14.89 per cent from their peak of Rs 130, which was achieved shortly after the IPO. However, the stock has gained 45.57 per cent from its IPO price of Rs 76. The initial public offering raised approximately Rs 6,145.56 crore for the company.Market analysts have offered mixed views on the stock. Gaurang Shah, Senior Vice President at Geojit Financial has recommended that investors consider booking profits given the recent stock price surge. Shah also noted that Ola Electric will reveal a new electric motorcycle model at an event on August 15, 2024.Kranthi Bathini, Director of Equity Strategy at WealthMills Securities has advised the investors who bought shares for listing gains to sell at current levels, while those with a long-term investment perspective might choose to hold.Ola Electric was founded in 2017, specialises in electric vehicles and key components, including battery packs, motors, and vehicle frames, manufactured at its Ola Futurefactory. As of August 8, 2024, the company's promoters hold a 36.78 per cent stake.

Advertisement

Ola Electric reports wider Q1 loss despite revenue growth

Ola Electric’s consolidated net loss for the April-June period broadened to Rs 347 crore, compared to Rs 267 crore in the same quarter of the previous year.

Advertisement