Ola Electric Mobility, which made its stock market debut last week, will now focus on improving its margins, said Chairman and MD Bhavish Aggarwal on August 14 after the company posted a net loss in Q1.
"We had been focussing more on our IPO, and our next focus will be on improving margins. With cell integration, you will see our margins improving," Aggarwal said during the company's post-earnings call.
Ola is seeing improvements in its margins, and automotive margins will continue to improve, the official added.
"We have vertically integrated manufacturing and building and sourcing all auto components in-house, this is helping us improve margins and this is our strategy," he said.
Ola Electric posted an adjusted gross margin of Rs 377 crore for the quarter ended 30th June 2024. The
Adjusted Gross Margin stood at 21.94 percent of Revenue, up 873 bps YoY from 13.21 percent for the same quarter last year.
The company's EBITDA loss was at Rs 205 crore in Q1FY25 as compared to Rs 218 crore in Q1FY24.
The company has invested close to Rs 400 crore for phase one of Ola's Giga factory and will also be using some of its IPO proceeds on capacity expansion, Aggarwal said.
Earlier on Wednesday, Ola Electric Mobility, said its net loss for the quarter ended June 30, 2024 was Rs 347 crore, which widened by around 30 percent year-on-year.
The firm's consolidated revenue from operations rose 32 percent to Rs 1,644 crore as against Rs 1,243 crore in Q1FY24, showed the company's filings on BSE on August 14. On a quarterly basis the company's net losses have come down by 16 percent. In March quarter, the firm reported a net loss of Rs 416 crore.
Meanwhile, booking for Ola's EV motorcycles will begin from tomorrow, and deliveries will begin from Q4 of this fiscal year, Aggarwal said during the call.
Ola Electric has been teasing images of the two-wheeler on social media for the past few days.
Last year in August, Ola had revealed concept electric motorcycles comprising four models, namely - Diamondhead, Adventure, Roadster and Cruiser.
As of FY24, motorcycles comprised of 64 percent of India's two-wheeler market, as per SIAM estimate. Within this segment, electric motorcycle's penetration has been less than one percent. Ola Electric is looking to tap this market.
"Our overall EV market share is around 48 percent. Motorcycles focus on a different market and I do expect we will cover newer markets," he added. "Our focus will remain building portfolio of EVs for customers. There might be quarterly movement in market share, but if you see the pattern, we have been moving up. With newer products it will only go up."
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