Business News
4 min read | Updated on January 13, 2025, 12:26 IST
SUMMARY
Ola Electric Mobility, a leading electric vehicle (EV) manufacturer in India, is experiencing significant challenges with its ongoing Central Consumer Protection Authority (CCPA) probe and SEBI warning after the company announced its expansion plans on social media before informing the exchanges. The stock is trading in the red on Monday, January 13.
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The company has plans to launch 20 new products in the two-wheeler and three-wheeler categories over the next two years
Shares of Ola Electric Mobility are in focus today after the Central Consumer Protection Authority (CCPA) requested additional documents and information under the ongoing investigation into the Bengaluru-based electric two-wheeler manufacturing company.
The shares closed 3% down on the BSE on Friday at ₹73.4 apiece. The stock is currently trading 2.5% down at ₹71.53 apiece on the NSE on Monday, January 13. Ola Electric’s market capitalisation stands at ₹31,550.67 crore as per NSE data.
"In continuation of the earlier letter received from the Central Consumer Protection Authority dated Dec. 4, 2024, by Ola Electric, we would like to inform you that the company has received a further request for information via email dated Jan. 10, 2025,” the EV maker said in an exchange filing on Friday.
This comes following the Karnataka High Court order granting the company a six-week extension to submit a response to the previous letters by the CCPA.
For the second quarter of the current fiscal year (Q2 FY25), the company posted a consolidated net loss of ₹495 crore, down from ₹524 crore in the year-ago period.
The company recorded a consolidated revenue of ₹1,214 crore, noting a 38.5% year-on-year (YoY) rise from ₹873 crore in the same quarter last year. The narrowed losses and increased revenue are aided by increased sales and lower raw material costs, the company said.
Its Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) stood at a loss of ₹379 crore for the July-September quarter, improving from the previous year’s figure of ₹435 crore. The company reported a gross margin of 20.3% for the quarter. It delivered 98,619 units, showing a strong growth of 73.6% when compared to the year-ago quarter, a company release said.
Amid the woes, the company has focused on diversifying its offerings with plans to launch 20 new products in the two-wheeler and three-wheeler categories over the next two years. It launched S1 Z and Gig in November last year at affordable prices for gig workers. Moreover, it recently launched its Roadster motorcycle series, deliveries for which are expected to begin in January 2025.
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