Ola Electrical, India’s prime e-scooter maker by market share, reported a narrower second-quarter loss on Friday helped by a bounce in gross sales, and mentioned the current surge in service requests was largely for “minor points.”
The Bengaluru-based firm mentioned its consolidated loss narrowed to 4.95 billion rupees ($58.7 million) within the July-September quarter from 5.24 billion rupees a 12 months earlier.
Ola’s quarterly income jumped 39.1% to 12.14 billion rupees, helped by gross sales of mass fashions, or these priced beneath 100,000 rupees (about $1,186). It had not begun deliveries of those fashions final 12 months.
Ola Electrical delivered a complete of 98,619 two-wheelers between July and September, 73.6% increased than final 12 months. It offered 56,545 mass fashions.
Bills grew by 21.8%, slower than the earlier quarter’s 26.6% rise. Uncooked materials prices, Ola’s greatest expense, rose 46.7% however had been decrease 18.2% sequentially.
Rising client complaints and regulatory scrutiny over allegations of poor service have solid a shadow on the SoftBank-backed e-scooter maker, following a stellar market debut in August.
“Not all service requests that come are complaints or points with the product, a lot of them are common check-ins or scheduled upkeep,” founder and chairperson Bhavish Aggarwal mentioned on an analyst name on Friday.
“Two-thirds of it really are simply minor points like free elements or clients unfamiliar with the software program used,” Aggarwal mentioned.
Ola Electrical’s shares have fallen 5.5% since itemizing on Aug. 9, whereas its dominance within the electrical two-wheeler market has diminished in current months.
“Over the second quarter, we had a little bit of a capability problem when it comes to service, our gross sales expanded quicker than we had expanded our service community,” Aggarwal mentioned.
Reuters final 12 months visited 35 Ola centres in 10 Indian states and located many confronted vital backlogs, with demand outstripping their workforce or their provide of spare elements.
© Thomson Reuters 2024
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