Latest news with #BhavishAggarwal-led
Time of India
2 days ago
- Automotive
- Time of India
Ather Energy betters Q4 results where Ola Electric falters
Ola Electric experienced a significant downturn in the March quarter, with revenue declining by 62% to Rs 611 crore and losses doubling to Rs 870 crore, attributed to registration process issues. In contrast, Ather Energy reported a 29% increase in operating revenue to Rs 676.1 crore and narrowed its losses by 17%. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads 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 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 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 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 Electric had the lead in units sold 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 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 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
3 days ago
- Automotive
- Time of India
Ola Electric Q4 net loss doubles to Rs 870 crore as revenue slumps 62%
Ola Electric's financial performance worsened in the fourth quarter of FY25, with the company reporting a sharp decline in revenue and a two-fold increase in net losses. The Bhavish Aggarwal-led electric vehicle (EV) firm reported operating revenue of Rs 611 crore for the January–March quarter, down 61.8% year-on-year from Rs 1,598 crore in the same period last year. Net loss for the quarter widened to Rs 870 crore, compared to Rs 416 crore in Q4FY24. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like How Much Does It Cost to Rent a Private Jet - The Prices May Surprise You! Private Jet I Search Ads Learn More Undo This marks one of the steepest quarterly revenue declines for the company since it started commercial two-wheeler deliveries in late 2021. It comes amid heightened competition in the electric two-wheeler space, regulatory uncertainty over subsidies, and inventory correction across dealerships. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories
Mint
4 days ago
- Automotive
- Mint
Ola Electric's Q4 results will be Bhavish Aggarwal's chance to set the record straight
One year can be a long time in business. In May 2024, Bhavish Aggarwal-led Ola Electric Mobility Ltd dominated India's electric two-wheeler market and was 3 months from a public listing at a valuation of $4 billion. Investors saw the company with excitement as legacy two-wheeler makers remained cautious about jumping into the electric vehicle market. When Ola Electric listed in August 2024, its share price doubled within a fortnight. For the Bengaluru-based startup, it did not seem like its fortunes could go awry, until they did. Cut to May 2025 and Aggarwal, Ola Electric's founder and chief executive, is busy putting out fires. The company's share price has plunged more than 30% since listing on 9 August 2024 and the company has dropped to third in the e-scooter pecking order with legacy players TVS Motor Co. Ltd and Bajaj Auto Ltd surging ahead. Also read | What went wrong for Ola Electric after its $4 billion IPO? To make matters worse, Ola Electric is under scrutiny by the ministry of heavy industries, the ministry of road transport and highways, the Central Consumer Protection Authority, and the Securities and Exchange Board of India for various issues, including a disruption in its vehicle registration operations, lack of trade certificates, and consumer complaints over servicing of its scooters. So when Aggarwal leads the quarterly management call on 29 May post the announcement of the company's fourth-quarter and 2024-25 results, he can expect some tough questions from analysts and investors. Aggarwal is expected to throw light on the demand for its recently launched e-motorcycle RoadsterX, the installation of Ola's own lithium-ion batteries, called Ola Cells, in its scooters, and its cost-reduction programme. The management will also have the chance to clear the air on the regulatory scrutiny the company faces, which has weighed on investor sentiments this year. Ola Electric's share price has fallen by nearly 40% this year. Mint puts together five key factors to watch out for when Ola Electric declares its results on 29 May. Also read | Can Ather, India's Tesla for two-wheelers, beat Ola Electric on the markets? Revenue Ola Electric's Q4 revenue is expected to decline 42% to ₹915 crore from ₹1,598 crore in the corresponding year-ago period, according to Bloomberg's estimate based on projections by two analysts. The company's sales growth slowed significantly in the previous financial year. Ola Electric sold 344,009 e-scooters in 2024-25, a tepid 4.5% rise in sales when compared with the nearly 100% jump to 330,000 units in 2023-24. In exchange filings, Ola Electric has insisted that it recognises revenue from vehicles sold only after those vehicles are registered with transport authorities. For February, for instance, the company claimed that it had sold over 25,000 vehicles but could only register around 8,600 vehicles due to issues with its two registration agencies. As per Ola Electric's disclosures, its backlog of vehicles was to be fully cleared in April, which means the company will not be able to recognise revenue from all the vehicles sold between January and March, the final quarter of 2024-25. Ola Electric has recognised revenue only for 56,642 units for the financial fourth quarter, down from 120,132 registered units for the year-ago January-March quarter. Also read | Ola Electric's sales collapse in a booming electric two-wheeler market ProfitabilityOla Electric's net loss for the January-March quarter is expected to be ₹408 crore, similar to the ₹416 crore loss recorded in the same year-ago period, as per Bloomberg's estimate. Rating agency Icra estimates Ola Electric's FY25 loss to widen to ₹1,900-2,000 crore from ₹1,600 crore in FY24. Investors and analysts will be watching for the company's profitability target. In an earnings call on 7 February after announcing Ola Electric's third-quarter results, Aggarwal had said the company has to reach 50,000 units in monthly sales to turn profitable. The company's latest sales figures are far off that target. Ola Electric's deliveries in April dropped to 19,709 vehicles from 34,160 units during the same month last year, according to data from the government's Vahan portal. Commentary on margins will also be a key factor to watch. Battery plans As per Ola Electric's stated plans, its cell gigafactory for manufacturing lithium-ion batteries should have reached 6.4 GWh capacity by the end of April. However, its current capacity is at 1.4 GWh, suggesting significant delays in scaling up operations at the factory. Ola Electric has said it will begin commercial production of lithium-ion batteries in the first quarter of 2025-26 (the ongoing April-June quarter). Given that the company raised ₹1,227 crore in August last year to scale up its cell gigafactory's capacity to 6.4 GWh, investors are expected to pose questions on the project's updated timeline and how the delay could impact Ola Electric's profitability target. Also read | Ola's battery cell ambition has run into a bump Regulatory clarity With Sebi, the Central Consumer Protection Authority, and the ministries of heavy industry and road transport scrutinizing various aspects of Ola Electric's business, the company's management is expected to address investor concerns over the issues involved. In Maharashtra, the state's transport authority last month asked regional officers to take action against 121 Ola Electric stores that were operating without trade certificates. While the company's sales network has more than 4,000 stores, clarity on how many stores have trade certificates and the status of the regulatory inquiries are expected to come up during the management's call with analysts and investors. RoadsterX plans After multiple delays, Ole Electric began delivering its electric motorcycle RoadsterX to consumers this month. The company is expected to provide insights into initial demand trends for the bike as the e-motorcycle market remains nascent. Moreover, analysts and investors will also be looking for clarity on how many bookings the company received in the last three months for RoadsterX, and the number of deliveries so far. Also read | Bhavish Aggarwal curbs ambition, seeks to raise $300mn for AI venture Krutrim
Time of India
4 days ago
- Automotive
- Time of India
Ola Electric drops to third spot in EV two-wheeler market
NEW DELHI: Ola Electric dropped to the third position in India's electric two-wheeler market in May, losing its lead to legacy automakers TVS Motor and Bajaj Auto amid a broader sales slowdown in the sector. Once commanding more than half the market just over a year ago, the Bhavish Aggarwal-led company saw its share drop to 20% in the first 26 days of May, down from 22.1% in April, according to the government's Vahan portal. Ola Electric recorded 15,221 vehicle registrations during this period, a sharp 60% fall from 37,388 units sold in May 2024. In comparison, TVS Motor and Bajaj Auto gained ground, with market shares rising to 25% and 22.6% respectively, despite slight volume dips, the Economic Times reported. Ather Energy, another key player in the space, also saw a decline, with market share slipping to 13.1% in May from 14.9% the previous month. The decline adds to Ola Electric's growing list of challenges. The company is under regulatory scrutiny over concerns around sales reporting, vehicle quality, and missing trade certificates at some dealerships. It also missed sales targets laid out by CEO Aggarwal, who had projected 50,000 units per month as a breakeven point for the auto business. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Has Honda Done It Again? The New Honda CR-V is Finally Here. TheFactualist Undo In a bid to stabilize finances, the company's board recently approved raising up to Rs 1,700 crore through non-convertible debentures and other debt instruments, its first fundraising since going public in August 2024. Earlier on Tuesday, its shares closed at Rs 52.49 on the BSE, significantly below the IPO price of Rs 76. Meanwhile, Ola has begun deliveries of its first electric motorcycle, the Roadster X, which comes in two variants and offers multiple battery configurations. Financially, the company continues to struggle. In the October–December 2024 quarter, its net loss widened by 50% year-on-year to Rs564 crore, while operating revenue fell 19%. The company has yet to release its financials for the final quarter of FY25. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
5 days ago
- Automotive
- Time of India
Ola Electric slips to number three in EV two-wheeler market as rivals gain ground
Ola Electric fell to the third position in India's electric two-wheeler market in May, losing ground to legacy companies TVS Motor and Bajaj Auto amid a sector-wide sales slowdown. The erstwhile market leader, which has been grappling with operational and regulatory challenges, saw its market share shrink to a fifth from more than half just 13 months ago. The Bhavish Aggarwal-led company had a 20per cent market share in the first 26 days of May, down from a 22.1per cent share in April, showed data from the government-run Vahan portal. It recorded 15,221 vehicle registrations during May 1-26, a steep decline of about 60per cent from 37,388 in the entire May 2024. In contrast, TVS Motor and Bajaj Auto gained market share this month, accounting for 25per cent and 22.6per cent , respectively, despite marginal dips in volume. Newly listed Ather Energy also reported a drop in market share, down to 13.1per cent in May from 14.9per cent in the previous month, with vehicle registrations declining to 9,962 units from 13,287 units during this period. Queries sent by ET to Ola Electric remained unanswered till press time. The company's latest sales figures fall way short of the targets shared by CEO Aggarwal on the last quarterly earnings call, where he said the auto segment could break even at the earnings before interest, taxes, depreciation and amortisation level with monthly sales of about 50,000 units in the upcoming quarters. Last week, the company's board approved raising up to ₹1,700 crore through non-convertible debentures and other debt instruments — the first fundraising move since its initial public offering (IPO) in August 2024. The funds are expected to bolster operations and shore up finances amid increased regulatory scrutiny and a falling stock price. On Tuesday, Ola Electric Mobility shares closed at ₹52.49 on the BSE, well below their issue price of ₹76. The slide in market share comes as the company has come under the scanner for issues including discrepancies in reported sales data, concerns over vehicle quality and missing trade certificates at several retail outlets. In February, Vahan data showed 8,652 registrations for Ola Electric, whereas the company claimed in its filings that it had sold 25,000 units. The mismatch was attributed to a temporary backlog during contract renegotiations with registration service providers Rosmerta and Shimnit India. The discrepancy, however, prompted inquiries by the Ministry of Heavy Industries and the Ministry of Road Transport and Highways. On May 5, ET reported that intellectual property rights for the Ola brand — currently held under ANI Technologies — are being moved to a new holding entity controlled by Aggarwal's family office, a move opposed by some ANI shareholders. Meanwhile, the company's cell manufacturing project is shrouded in uncertainty. Ola Cell Technologies Private Limited, a wholly owned subsidiary of Ola Electric, began construction of its gigafactory in May 2023 in four phases to manufacture lithium-ion cells for electric vehicles. In its IPO prospectus, the company had earmarked ₹1,227 crore for expanding cell production capacity from 5GWh to 6.4GWh under the second phase of the plan. However, in a May 15 report, monitoring agency ICRA said none of the funds had been utilised till then. 'Ola Electric has had significant issues with after-sales service, which has dented customer confidence in a big way,' said VG Ramakrishnan, managing partner at Avanteum Advisors LLP. 'While competition intensity has increased, in Ola's case, I think it has more to do with their own issues, internal company organisational issues, rather than just on market factors or competitive factors. The competition intensity will only increase from legacy players. It is not going to reduce in the future. So what will be the levels at which Ola's market share will get sustained is the question.' Ola Electric has faced regulatory run-ins as well. On January 11, the Central Consumer Protection Authority sought documents from the company as part of an ongoing probe, following a show-cause notice issued on October 8, 2024, over alleged consumer rights violations, misleading advertisements and unfair trade practices. Despite mounting challenges, the company continues to expand its product line-up. On May 23, it began deliveries of its electric motorcycle , the Roadster X. Earlier, on January 31, the company launched its third-generation electric scooters, promising greater efficiency and power. Last year, it unveiled the S1 Z and Gig models, targeting gig workers and cost-conscious consumers. In October-December 2024, Ola Electric Mobility's net loss widened 50per cent year-on-year to ₹564 crore, while its operating revenue fell 19per cent . The company has yet to report its financial results for the fourth quarter of 2024-25.
