Ola Electric Mobility Ltd on Wednesday recorded a wider first-quarter loss for the ongoing financial year 2024-25 (Q1 FY25). The company, which made its stock market debut on Friday last week (August 9), 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 slashed prices of its cheapest range of e-scooters in April this year after the government halved the subsidy for purchases of electric vehicles. It accounted for the drop in incentives as a one-time expense of Rs 23 crore in the latest quarter.
The Bengaluru-based firm, however, said its revenue from operations climbed 32.26 per cent to Rs 1,644 crore during the quarter under review as against Rs 1,243 crore in the corresponding period last year.
The quarterly results were declared post-market hours today. On the stock-specific front, Ola Electric shares settled 2.38 per cent up at Rs 110.64. At this price, the recently listed scrip has declined 14.89 per cent from its lifetime high of Rs 130, a level seen yesterday.
Despite the mentioned drop, the counter has gained 45.57 per cent from its initial public offering (IPO) price of Rs 76. The counter made a muted market debut but witnessed a strong buying interest during the post-listing trade. The company raised around Rs 6,145.56 crore from its initial share sale.
A few analysts largely advised investors to consider booking profit at current levels. Although those with a long-term view can hold on to the stock, they added.
"The stock has been flyer over the last 2-3 days. So, let it settle down after the recent runup. As a disclosure, we've given a 'Subscribe' rating to the IPO of Ola Electric. We will see a curtain raiser for a new electric motorcycle from the company tomorrow. I think one should look forward to it. That said, the management needs to do something serious, given the loss on its balance sheet and the timeframe to turn it around," Gaurang Shah, Senior VP at Geojit Financial told Business Today TV.
"Investors who applied for listing gains can book profit at current levels. Those who invested for the longer term can hold on to the stock," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
Ola Electric was founded in 2017. It is a pure-play electric vehicle player that primarily manufactures electric vehicles and certain core components for electric vehicles such as battery packs, motors, and vehicle frames at the Ola Futurefactory.
As of August 8, 2024, promoters held a 36.78 per cent stake in the E2W player.