India’s Ola Electric reported a narrower second-quarter loss on Thursday as its core automotive business reported its first operating profit, aided by a sharp drop in expenses.
The electric two-wheeler maker posted a consolidated net loss of Rs 418 crore ($47.56 million) for the three months ended September 30, compared with Rs 495 crore a year earlier.
Its automotive segment reported earnings before interest, taxes, depreciation and amortization (EBITDA) of Rs 2 crore, marking its first positive result.
Total expenses dropped 44% to Rs 893 crore, with operational costs at its autos unit falling 46%.
Ola Electric said it expects to cut operational expenditure to between Rs 350 crore and Rs 375 crore by the first quarter of the next fiscal year. Its operational expenses stood at Rs 416 crore in the September quarter.
However, overall sales volumes nearly halved to 52,666 units, dragging revenue down 43% to Rs 690 crore. Entry-level models accounted for about 75% of volumes, up from 57% a year earlier.
The decline in volumes reflects Ola Electric‘s loss in market share. The company, which once held 50% of India’s e-scooter market, has been overtaken by legacy players such as Bajaj Auto and TVS Motor as they have expanded distribution and launched similarly priced models.
Reuters
