Ola Electric reported a wider net loss for the three months ended June 30, 2024, bogged down by higher costs.
The electric scooter maker, which leads the market of electric two-wheelers, reported a first-quarter net loss of Rs 347 crore compared with the Rs 267 crore loss incurred in the same period a year ago.
However, the company reported a 32% year-on-year (YoY) rise in its quarterly revenue to Rs 1,644 crore in Q1 FY25, buoyed by a rise in demand for its two-wheelers.
Total expenses in the quarter rose 26.5% YoY to Rs 1,849 crore, led by an increase in the cost of materials consumed.
In a pre-IPO event held in Bengaluru, Ola Electric’s Founder Bhavish Aggarwal mentioned that the company is banking on rising volumes, lower costs, and in-house manufacturing of its new lithium batteries to lead its path to profitability.
It competes with companies like Ather Energy, which is the latest entrant in the unicorn category, and established automobile giants like Hero MotoCorp and TVS Motors.
Ather Energy is the next EV maker that is set to file for IPO in 2025, according to reports. In June, the company converted into a public limited company from a private limited company.
Ola Electric listed on the stock exchange on August 9. Its shares began trading flat but quickly surged by about 20% on its first day of trading, hitting the upper circuit and valuing the company to about $4.8 billion.
At the close of business hours on Wednesday, before Ola Electric’s results were announced, the company’s shares were down by 2.9% at Rs 110.64 apiece on BSE.
(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director in Ola Electric)
