Business: Ola Electric Mobility Ltd on Wednesday reported a big first quarter loss for the current financial year 2024-25 (Q1 FY25). The company, which made its stock market debut on Friday (August 9) last week, said its consolidated net loss widened to Rs 347 crore in the April-June quarter from Rs 267 crore in the year-ago quarter. The e-scooter maker cut prices of its cheapest e-scooter in April this year after the government halved subsidies for purchase of electric vehicles. It accounted for the drop in incentives as a one-time expense of Rs 23 crore in the latest quarter. However, the Bengaluru-based firm said its revenue from operations grew 32.26 per cent to Rs 1,644 crore during the quarter under review, as against Rs 1,243 crore in the same period last year.
The quarterly results were announced after market close today. On the stock-specific front, shares of Ola Electric closed 2.38 per cent higher at Rs 110.64. At this price, the recently listed stock has declined 14.89 per cent from its lifetime high of Rs 130 seen yesterday. Despite the mentioned decline, the counter has gained 45.57 per cent from its initial public offering (IPO) price of Rs 76. The counter made its market debut on a slow note but witnessed strong buying during the post-listing trade. The company raised around Rs 6,145.56 crore from its initial share sale. Some analysts advised investors to consider booking profits at current levels. However, they added that those with a long-term view can hold the stock.
“The stock has been surging in the last 2-3 days. So, let it settle down after the recent surge. As a disclosure, we have given a ‘subscribe’ rating to Ola Electric’s IPO. We are going to unveil a new electric motorcycle from the company tomorrow. I think we should eagerly await it. However, the management needs to take some serious steps given the losses on its balance sheet and the time frame to fix it,” Gaurang Shah, senior VP at Geojit Financial, told Business Today TV. Kranti Bathini, director, equity strategy at Wealthmills Securities, said, “Investors who have applied for listing gains can book profits at current levels. Those who have invested for the long term can hold the stock.” Ola Electric was founded in 2017. It is a pure electric vehicle company that mainly manufactures electric vehicles and some key components for electric vehicles such as battery packs, motors and vehicle frames at Ola Futurefactory.
