Ola Electric’s Q2 Loss Narrows, Says Most Service Points ‘Minor’

Ola Electric, India’s high e-scooter maker by market share, reported a narrower second-quarter loss on Friday helped by a bounce in gross sales, and mentioned the latest surge in service requests was largely for “minor issues.”

The Bengaluru-based firm mentioned its consolidated loss narrowed to 4.95 billion rupees ($58.7 million) within the July-September quarter from 5.24 billion rupees a 12 months earlier.

Ola’s quarterly income jumped 39.1% to 12.14 billion rupees, helped by gross sales of mass fashions, or these priced under 100,000 rupees (about $1,186). It had not begun deliveries of those fashions final 12 months.

Ola Electric delivered a complete of 98,619 two-wheelers between July and September, 73.6% greater than final 12 months. It offered 56,545 mass fashions.

Expenses grew by 21.8%, slower than the earlier quarter’s 26.6% rise. Raw materials prices, Ola’s greatest expense, rose 46.7% however have been decrease 18.2% sequentially.

Rising shopper complaints and regulatory scrutiny over allegations of poor service have forged a shadow on the SoftBank-backed e-scooter maker, following a stellar market debut in August.

“Not all service requests that come are complaints or issues with the product, many of them are regular check-ins or scheduled maintenance,” founder and chairperson Bhavish Aggarwal mentioned on an analyst name on Friday.

“Two-thirds of it actually are just minor issues like loose parts or customers unfamiliar with the software used,” Aggarwal mentioned.

Ola Electric’s shares have fallen 5.5% since itemizing on Aug. 9, whereas its dominance within the electrical two-wheeler market has diminished in latest months.

“Over the second quarter, we had a bit of a capacity challenge in terms of service, our sales expanded faster than we had expanded our service network,” Aggarwal mentioned.

Reuters final 12 months visited 35 Ola centres in 10 Indian states and located many confronted vital backlogs, with demand outstripping their workforce or their provide of spare elements.

© Thomson Reuters 2024

(This story has not been edited by NDTV employees and is auto-generated from a syndicated feed.)