Its deliveries up by 73.6% YoY
FinTech BizNews Service
Mumbai, 8 November, 2024: Ola Electric today announced its quarterly results for the quarter ended September 2024. Company’s revenue grew by 38.5% to Rs1,240 Cr for the quarter ended 30th September 2024, up from Rs896 Cr for the quarter ended 30th September 2023. The company posted a Gross Margin of 20.3% in Q2 FY25 which saw an increase of 12.0 pp YoY.
In continuation of the strategy to invest in Engineering and Manufacturing platforms, Ola Electric announced go live with the S1 Gen 3 products in January 2025 enabling a 20 pp improvement in margins over next 12 months. The company reported Consolidated EBITDA Margin for the quarter at (28.4)%. Operating expenses are marginally lower by 1% QoQ excluding one-off costs. The company is focusing on cost efficiency and it should be able to keep operating expenses constant or even slightly lower as it grows topline thereby improving operating leverage.
During the quarter, vehicles delivered by the Company increased by 73.6% and stood at 98,619 units as against 56,813 units delivered in the same period last year. The company ramped up deliveries of its mass market scooter portfolio (S1 X portfolio) during the quarter which helped accelerate growth. The mass market portfolio (sub Rs1 lakh) continued to drive momentum and has grown by 15% QoQ driving EV penetration while the premium portfolio continues to be a major contributor in revenue.
Ola Electric presently has 782 company owned stores as on September 2024, with each store delivering 130 sales on average per quarter, roughly 2-3x of industry average. Ola Electric would expand its company owned store (and colocated service infra) network to 2000 company owned stores by March 2025. Ola Electric presently has the broadest portfolio in EV scooters with 6 models across a price range of Rs75,000 to Rs150,000. The company is now focusing on entering other 2/3W categories, and over the next 2 years, would launch 20 products, with at least 1 new product launch every quarter.
At its annual ‘Sankalp’ event in August 2024, the company announced the launch of its Roadster motorcycle series, with the first product to be delivered in March 2025. The products are priced to capture the entire spectrum of mass and premium motorcycles ranging from Rs74,999 to Rs 249,999 across 3 models and 8 variants. Ola Electric further reiterated that Cell has been an integral part of the company’s vertical integration strategy and the company is on track to commence use of these cells in our E2W portfolio by Q1 FY26. All production systems at the Ola Gigafactory are fully operational and trial production reached a new milestone in Q2 FY25 with over 20,000 cells manufactured.
