Ola Electric's Net Loss Surges 43 Pc In Q2, Revenue Slumps 26 Pc
Date
11/8/2024 7:45:45 AM
(MENAFN- IANS) New Delhi, Nov 8 (IANS) Bhavish Aggarwal-run Ola Electric on Friday reported a huge 43 per cent surge in net loss at Rs 495 crore in the July-September period (Q2 FY25), from Rs 347 crore in the previous quarter (Q1 FY25), as the EV firm remained mired in issues related to service quality across the country.
The electric two-wheeler company also saw its revenue slump 26.1 per cent to Rs 1,214 crore (on-quarter) from Rs 1,644 crore in the first quarter of this fiscal.
The net loss, however, narrowed on a year-on-year basis.
The company also saw its market share plunge to 33 per cent in Q2, down from 49 per cent in the previous quarter.
According to experts, increased competition and service network challenges have impacted Ola Electric's market dominance.
On Friday, Ola Electric's share further plunged to Rs 72 apiece, its all-time low and down more than 55 per cent from its all-time high of Rs 157.40. The stock made its public debut at Rs 76.
According to market experts, the company's stock can further slip below the Rs 70 mark. The stock is in a weak position and remains in a 'no-trade' zone, said market analysts.
If Ola Electric's stock remains below its IPO price of Rs 70 for a few days, it may see a further decline due to selling by institutional investors and retail investors. Selling is being seen in shares at every level. Due to continued weakness, investors should stay away from this stock and invest in companies with strong fundamentals, they added.
The reason for the weakness in the shares of Ola Electric is being attributed to the company's weak sales figures and poor service.
Meanwhile, despite Ola Electric claiming that it has resolved 99.1 per cent of the 10,644 complaints filed with the Central Consumer Protection Authority (CCPA) regarding its poor after-sales service, the Department of Consumer Affairs was critically examining responses filed by the Bhavish Aggarwal-run EV firm, and will correlate each consumer complaint with the company's claims.
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