Latest news with #BhavishAggarwal
Economic Times
4 days ago
- Automotive
- Economic Times
Ather Energy betters Q4 results where Ola Electric falters
Agencies Ather 450S and the Ola S1 X+ The once industry leader, Ola Electric, reported a dismal March quarter, with a sizeable fall in its revenue and losses expanding twofold. In comparison, the recently listed Ather Energy posted a decent improvement in financials for the quarter. For the quarter ended March, the Bhavish Aggarwal-led electric scooter maker reported a 62% decline in sales to Rs 611 crore, a precursor to the decline in market share two months later. The EV maker saw its loss double to Rs 870 crore, from Rs 416 crore in the year-ago period. Ola Electric's financials were impacted by a one-time issue with the registration process, founder Bhavish Aggarwal on an earnings call. In February, Vahan data showed only 8,652 registrations for Ola Electric, while the company claimed sales of 25,000 units in its filings. The discrepancy was attributed to a temporary backlog caused by ongoing contract renegotiations with registration service providers Rosmerta and Shimnit India. The issues have been resolved in the current quarter, the CEO said. Ather, the only other listed pure-play electric two-wheeler manufacturer, reported a 29% increase in operating revenue to Rs 676.1 crore, up from Rs 523.4 crore in the same period last year. Its losses narrowed 17% year-on-year (YoY) to Rs 234.4 crore on the back of rising volumes and improved margins. Ola Electric had the lead in units sold during Q4 at 51,375 scooters, but Ather managed a close 47,411 units. While the former has started deliveries on its Roadster X motorcycles, Ather is working on developing its own line, funded by a part of its IPO proceeds. "The performance of the Roadster X will be the key... While Ola Electric reports strong interest and positive feedback from early customers... we believe the electric motorcycle performance will be critical for the company, as it will be addressing two-thirds of the two-wheeler market through rural penetration; we will wait and watch the performance in the coming quarters," brokerage Kotak Institutional Equities said. Ola Electric managed to reduce expenses by 31.6% to Rs 1,306 crore, largely due to a nearly Rs 1,000 crore cut in material costs. Ather, on the other hand, saw expenses rise 12.6% to Rs 922.2 crore from Rs 818.7 crore a year ago, mainly due to higher material costs, even as employee benefit expenses declined 29% to Rs 109.1 Ola S1 maker has guided for a better June quarter, though. 'If you look at our Q1 outlook, we are sharing a revenue forecast of about Rs 800-850 crore, about 65,000 deliveries and a gross margin of about 28–30%, which is much higher than Q4,' said Aggarwal in a post-earnings company will be careful with allocating capital and managing risk, Aggarwal had said. Also Read: Ola Electric to focus on capital discipline, risk management: CEO Bhavish Aggarwal after dismal Q4 earnings Ather is targeting profitability, going forward. 'I think (there are) very strong levers for operating leverage in the coming quarters, which will hopefully get us to profitability soon. For us, profitability could happen at a lower scale than some of the other peers, given our more capital-light and more capital-efficient approach on business overall,' cofounder Tarun Mehta had said.
Time of India
5 days ago
- Automotive
- Time of India
Ola points to competitive intensity for market share loss, ebike volumes key to future growth
HighlightsOla's e2w market share fell from ~50% to 30% in FY25 with net loss at ₹870 crore and revenue down 62% YoY Focus shifted to Roadster motorcycles while delaying gig-focused models and three-wheelers Service time improved to 1.1 days with in-house registration and 4,000+ sales outlets EBITDA breakeven lowered to 25,000 units with projected Q1 revenue of ₹850 crore and 28–30% gross margin Sales have been plummeting, losses have widened and its erstwhile numero uno position in the electric two wheeler (e2w) market is under a visible threat. So Ola Electric has shifted gears and is now banking on the success of the Roadster motorcycle series and new gen scooters to keep afloat, as it delays the launch of some other products. The company has started deliveries of the motorcycles earlier this month, becoming the first major OEM to sell an electric bike which targets the mass segment. The market size for motorcycles is twice that of scooters and Ola believes it offers a compelling proposition in the total cost of ownership of a Roadster. The company has also delayed the launch of some models it had announced earlier, including models aimed at the gig workforce , the S1Z scooter and three wheelers. Other steps undertaken to stem the market share plunge include beefing up the distribution network, rejigging the vehicle registration process, improving delivery timelines and putting a system in place for achieving targeted cost savings. EBITDA has now come down to almost 25,000 units from earlier what we had communicated to you and this is because the gross margin is expanding on one one side and then our cost is reducing on the other Aggarwal 'So cost savings are on track and as a result of both cost savings as well as our network Project Vistar , both together, our breakeven point of our auto business segment EBITDA has now come down to almost 25,000 units from earlier what we had communicated to you and this is because the gross margin is expanding on one one side and then our cost is reducing on the other side,' Co-founder and CEO Bhavish Aggarwal told analysts after the FY25 results. In guidance for the current quarter, Aggarwal said the revenue forecast was ₹850 crore, about 65,000 deliveries and a gross margin of about 28-30%, 'which is much higher than Q4'. In the March quarter of last fiscal, Ola's deliveries fell by almost half year on year and gross margin of just over 19%. Net loss widened to ₹870 crore (₹416 crore) while revenue from operations declined by 62% year-on-year to ₹611 crore. Ola acknowledges legacy OEMs' role For the first time, Ola Electric has acknowledged the role of legacy electric two wheeler (e2w) OEMs in chipping away at its dominant market share last fiscal. 'We have seen increased competitive intensity from traditional OEMs across all levers including distribution, product expansion and discounting. This, combined with operational challenges in scaling up our direct to customer (D2C) sales and service network and slower pace of EV penetration growth in FY25 resulted in quarter-on-quarter loss of market share,' the company said in an investor presentation. Also read: TVS wears the crown as Ola slides to second slot in April electric two wheeler sales Ola had been the undisputed market leader but in FY25, TVS Motor Company and Bajaj Auto began racing ahead, effectively making it a three corner race to the crown. Apart from increased competitive intensity from traditional OEMs, Ola has also cited its own operational challenges in scaling up the direct-to-consumer network for the quarter-on-quarter loss of market share. At the close of fiscal year 2025, Ola held about 30% share of the e2w market against nearly 50% in the year ago period and in April as well as May till date, TVS and Bajaj have raced past Ola in sales volume. Operational challenges Aggarwal has acknowledged the myriad operational challenges Ola has faced since at least September last year, 'first with service and then with registrations, but we've also significantly improved the bar on both on service. For example, we have now brought our service stat down to 1.1 days which is industry leading as well as on deliveries,' he said. But there was no word on the status of the thousands of complaints customers had registered against faulty product, which ultimately led to a probe by the CCPA. Our focus now is to increase productivity, sales productivity as well as sales per store of the stores that we have opened Aggarwal Also, at the beginning of the calendar year, Ola had faced issues with its vehicle registration process as it ended the contract with a vendor for enabling these registrations. Aggarwal said the registration process has been brought in house and thereafter, delivery timelines have significantly reduced. 'In addition we have expanded to about a total of 3200 odd company owned stores and a total of 4000 stores where we sell. Our focus now is to increase productivity, sales productivity as well as sales per store of these stores that we have opened up,' he said. Also read: In distribution rampup, Ather eyes hundreds of cities where competitors already present While all the steps Ola has taken to wrest back market share, improve its margins and bottomline appear to be prudent, the competitive intensity is unlikely to abate. Both, TVS and Bajaj, are eying expansion in product portfolio as well as distribution networks to further their electric dreams.
Mint
5 days ago
- Automotive
- Mint
Ola Electric Sinks Most in Nearly Two Months as Loss Deepens
(Bloomberg) -- Follow Bloomberg India on WhatsApp for exclusive content and analysis on what billionaires, businesses and markets are doing. Sign up here. Ola Electric Mobility Ltd. fell the most since early April after reporting quarterly losses that more than doubled from a year earlier, a performance that founder Bhavish Aggarwal said was marred by operational delays, weak demand and rising competition. The stock dropped as much as 9.7% Friday, the biggest intraday decline since April 7, and was trading down 5.3% as of 11:34 a.m. in Mumbai. Net loss widened to 8.7 billion rupees ($102 million) in the quarter ended March 31, from 4.16 billion rupees a year earlier, the company said Thursday. Revenue fell 62% year-on-year to 6.11 billion rupees. The e-scooter maker in India has seen its shares slip more than 40% this year after a blockbuster listing in August amid multiple crises in recent months. It has faced Indian government scrutiny for counting bookings for yet-to-be launched electric motorcycles and e-scooters as part of monthly sales and faced raids and vehicle seizures by state officials for lack of trade certificates at stores and alleged violation of customer rights. Ola said it saw higher sales but lower revenue — yet sales are only recognized once a vehicle is delivered, which was disrupted during the quarter. The company's decision to abruptly terminate ties with its registration vendors led to delays in vehicle registrations, directly impacting deliveries. This, coupled with persistent product quality issues that have left service centers overcrowded with repairs, significantly weighed on profitability. Aggarwal also acknowledged the intense competition Ola is facing from incumbents in India's e-two-wheeler market. The company has been rapidly ceding ground to rivals such as Bajaj Auto Ltd. and TVS Motor Co., amid multiple regulatory hurdles and customer dissatisfaction. 'In the last quarter or two, we have lost market share as market penetration grew slower than we expected and competitive intensity increased significantly across all levers of distribution, product and pricing,' he told analysts in a post-earnings conference call. In a further blow, the launch of its flagship Roadster electric motorcycle — originally scheduled for January, then March, then May — will now occur in a 'phased manner.' Analysts remain skeptical about the company's turnaround prospects, with Kotak Securities Ltd.'s Rishi Vora expecting operating profit losses to continue amid weakening brand equity and intensifying competition. 'Ola Electric's future hinges on scaling up volumes and successful motorcycle foray, which faces execution and credibility challenges,' Vora wrote in a note Friday, while downgrading the stock to 'sell' from 'reduce,' and slashing its price target to 30 rupees from 50 rupees. Aggarwal also disclosed a one-time warranty provision of 2.5 billion rupees during the quarter to cover expected costs from Gen 1 and Gen 2 scooters. In a bid to boost sagging demand and support the stock, Ola announced a 48-hour flash sale on its S1X 3kWh scooter variant on Friday, slashing prices to 74,999 rupees and offering a 50% discount on its MoveOS software upgrade. The company is also offering a free extended battery warranty as part of the promotion. Other key numbers from Thursday's results: --With assistance from Chiranjivi Chakraborty. (Updates with further details.) More stories like this are available on
Economic Times
5 days ago
- Automotive
- Economic Times
Ola Electric reports revenue decline and widening losses in March quarter
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Ola Electric's financial performance worsened in the March quarter as the electric two-wheeler maker reported a sharp decline in revenue and loss company posted a net loss of ₹870 crore compared with ₹416 crore in the same period last year, amid declining market share, a slump in the stock price, and increased regulatory revenue fell 61.8% YoY to ₹611 crore from ₹1,598 crore, driven by a drop in electric scooter sales - the Bengaluru-based company's primary revenue source."These (financial) numbers were impacted by a one-time issue with our registration process which we had highlighted during the course of the quarter itself. That subsequently got resolved in Q1 which is this quarter," said founder Bhavish Aggarwal on an earnings call."If you look at our Q1 outlook, we are sharing a revenue forecast of about ₹800-850 crore, about 65,000 deliveries and a gross margin of about 28-30% which is much higher than Q4," said Aggarwal Electric reduced total expenses by 31.6% to ₹1,306 crore, largely due to a nearly ₹1,000 crore cut in material deliveries fell to 51,375 units in the quarter, down from 115,386 in the year-ago period. However, gross margin at its automotive business inched up to 19.2% from 18% last said the company had planned to integrate its own battery cells into its vehicles in the current quarter. While the vehicles are ready with in-house cells, the rollout was deferred to allow time for stabilising the newly launched Roadster bikes and the Gen 3 scooter platform, said Aggarwal. The company also aims to improve cell production yields from 60% to 80% before the full-scale launch. "We are delaying it a bit just to make sure the operating profile of the commercial business is first prioritised. Then we add on the cell integration to that," he added. A total capital expenditure of ₹1,600 crore has been earmarked for expanding the company's cell manufacturing capacity from the current 1.5 GWh to 5 GWh. "We have not yet kicked off this capex cycle on the cell yet because we are just waiting for stabilising yields in the 1.5 gigawatt hour," Aggarwal said. Ola Electric slipped to third position in India's electric two-wheeler market in May, overtaken by legacy players TVS Motor and Bajaj Auto . The company held a 20% market share in May, down from 22.1% in April and significantly lower than the 50% share it commanded in May 2024. Aggarwal described the March quarter as a period of "important learning and introspection" as Ola Electric navigates its transition to a publicly listed company. "As we have transitioned from a private to a public company, we have to also manage operating risk in a slightly more mature way. So, that lesson has been well learned by everybody at Ola Electric," he said. "Going forward, hence you will see us be much more deeper as well as thoughtful about capital allocation and operating risk."Earlier this month, Ola Electric's board approved raising up to ₹1,700 crore through non-convertible debentures and other debt instruments - the company's first fundraising move since its August 2024 IPO. The funds are expected to support operations and strengthen the balance sheet amid regulatory challenges and stock market company has faced increasing scrutiny over discrepancies in reported sales figures, vehicle quality issues, and missing trade certificates at several retail outlets. In February, Vahan data showed only 8,652 registrations for Ola Electric, while the company claimed sales of 25,000 units in its filings. The discrepancy was attributed to a temporary backlog caused by ongoing contract renegotiations with registration service providers Rosmerta and Shimnit mismatch prompted inquiries by the Ministry of Heavy Industries and the Ministry of Road Transport and Highways. Despite these headwinds, Ola Electric is expanding its product line. On May 23, it began deliveries of its Roadster X electric motorcycle, which Aggarwal said is generating strong interest. The company launched its third-generation electric scooters on January 31, promising improved performance and efficiency.
Time of India
5 days ago
- Automotive
- Time of India
Ola Electric reports revenue decline and widening losses in March quarter
Mumbai: Ola Electric's financial performance worsened in the March quarter as the electric two-wheeler maker reported a sharp decline in revenue and loss widened. The company posted a net loss of ₹870 crore compared with ₹416 crore in the same period last year, amid declining market share, a slump in the stock price, and increased regulatory scrutiny. Operating revenue fell 61.8% YoY to ₹611 crore from ₹1,598 crore, driven by a drop in electric scooter sales - the Bengaluru-based company's primary revenue source. "These (financial) numbers were impacted by a one-time issue with our registration process which we had highlighted during the course of the quarter itself. That subsequently got resolved in Q1 which is this quarter," said founder Bhavish Aggarwal on an earnings call. Agencies Better Q1 Outlook "If you look at our Q1 outlook, we are sharing a revenue forecast of about ₹800-850 crore, about 65,000 deliveries and a gross margin of about 28-30% which is much higher than Q4," said Aggarwal Thursday. Ola Electric reduced total expenses by 31.6% to ₹1,306 crore, largely due to a nearly ₹1,000 crore cut in material costs. Vehicle deliveries fell to 51,375 units in the quarter, down from 115,386 in the year-ago period. However, gross margin at its automotive business inched up to 19.2% from 18% last year. Aggarwal said the company had planned to integrate its own battery cells into its vehicles in the current quarter. While the vehicles are ready with in-house cells, the rollout was deferred to allow time for stabilising the newly launched Roadster bikes and the Gen 3 scooter platform, said Aggarwal. The company also aims to improve cell production yields from 60% to 80% before the full-scale launch. "We are delaying it a bit just to make sure the operating profile of the commercial business is first prioritised. Then we add on the cell integration to that," he added. A total capital expenditure of ₹1,600 crore has been earmarked for expanding the company's cell manufacturing capacity from the current 1.5 GWh to 5 GWh. "We have not yet kicked off this capex cycle on the cell yet because we are just waiting for stabilising yields in the 1.5 gigawatt hour," Aggarwal said. Ola Electric slipped to third position in India's electric two-wheeler market in May, overtaken by legacy players TVS Motor and Bajaj Auto . The company held a 20% market share in May, down from 22.1% in April and significantly lower than the 50% share it commanded in May 2024. Aggarwal described the March quarter as a period of "important learning and introspection" as Ola Electric navigates its transition to a publicly listed company. "As we have transitioned from a private to a public company, we have to also manage operating risk in a slightly more mature way. So, that lesson has been well learned by everybody at Ola Electric," he said. "Going forward, hence you will see us be much more deeper as well as thoughtful about capital allocation and operating risk." Earlier this month, Ola Electric's board approved raising up to ₹1,700 crore through non-convertible debentures and other debt instruments - the company's first fundraising move since its August 2024 IPO. The funds are expected to support operations and strengthen the balance sheet amid regulatory challenges and stock market volatility. The company has faced increasing scrutiny over discrepancies in reported sales figures, vehicle quality issues, and missing trade certificates at several retail outlets. In February, Vahan data showed only 8,652 registrations for Ola Electric, while the company claimed sales of 25,000 units in its filings. The discrepancy was attributed to a temporary backlog caused by ongoing contract renegotiations with registration service providers Rosmerta and Shimnit India. The mismatch prompted inquiries by the Ministry of Heavy Industries and the Ministry of Road Transport and Highways. Despite these headwinds, Ola Electric is expanding its product line. On May 23, it began deliveries of its Roadster X electric motorcycle, which Aggarwal said is generating strong interest. The company launched its third-generation electric scooters on January 31, promising improved performance and efficiency.
