Ola Electric's quarterly loss narrows and expenses record a 28.4 per cent decrease

According to a report by Business Standard, Ola Electric's quarterly loss has decreased. The company reported a consolidated loss of ₹362 crore for the three-month period ending 30 September, compared to ₹418 crore during the same period last year. To improve profitability, the company implemented structural changes in personnel, cuts in warranty expenses, and tightened working capital expense management.

Due to these measures, expenses in the second quarter decreased by 28.4 per cent, which now stand at ₹639 crore. However, the company's gross margin stood at 29.93 per cent this time, compared to 30.9 per cent last year. The company stated that gross margins are likely to decrease in the third and fourth quarters due to the expansion of the dealer-store network, but operating margins are expected to improve significantly.

According to vehicle registration data, the company sold 41,651 units in this quarter, compared to 51,775 units last year. As a result, the company's revenue decreased by approximately 39 per cent to ₹421 crore. In a letter to shareholders, the company stated, "Demand is no longer our constraint, it is supply." The company is working with supplier partners to increase capacity and production.

Ola Electric was once India's largest electric two-wheeler manufacturer in terms of sales. Currently, the company is facing sales pressure amidst competition with companies such as Ather Energy, TVS Motor, Bajaj Auto, and Hero MotoCorp.