Chief executive Bhavish Agrawal terms second quarter as seasonally weak period.
The key highlight for us in Q2 has been that we have maintained our market leadership and there is also a quarter level competitive action that got aggressive.
Electric two wheeler maker ola electric on Friday reported a 39% year-on-year increase in operating revenue at ₹1.214 crore for the July - September period. Its net loss during the second quarter narrowed to ₹495 crore from ₹524 crore year earlier.
On sequential basis, however, revenue fell 26% and net loss widened. Deliveries also dropped 21% from a quarter earlier to 98.619 units.
Chief executive Bhavish Agarwal termed the second quarter as a week period, and during an earnings call predicted a recovery from the ongoing three-month period ending December.
He also underscores the increased competitive intensity in the two-wheeler market.
"The grass margin specifically for the ( company's ) auto segment is 20.6% which is flat quarter on quarter, and this is despite enhanced competitive dynamics in the industry. The key highlight for us in Q2 has been that we have maintained our market leadership, our market share is around 33% and there is also a quarter level competitive action that got aggressive,"
In September ola electric's market share dropped to 27% from 31% in August, as larger two-wheeler makers Bajaj auto and TVS Motor gained ground in the EV market. The company had a peak market share of 58% in May this year.
Agrawal told analysts that the company aims to grow at a rate of 30% year-on-year from here on.
During the three-month period ended September 30, Ola electric's operational performance took a hit sequentially with the company reporting a negative Ebitda margin of 28. 4%, compared with a negative 9.6% in the previous quarter.
Lately, Ola Electric has been announcing sale events in an effort to ramp up its sales. On October 10, it launched the 'Biggest Ola Season Sale', a three-day campaign offering discounts on the S1 electric scooter lineup.
Agrawal said the company took one-time expenses during the quarter pertaining to its initial public offering in August.
On Friday, its shares ended trading 2.5% down at ₹72.74 on the BSE. The results were announced after market hours.
Source: ET
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