Ola Electric Faces Financial Setback Amid Competitive Market
Ola Electric Mobility Ltd reported an increased net loss of Rs 564 crore for the December quarter, impacted by competitive pressure and one-off service-related costs. The company's revenue fell to Rs 1,045 crore, and the stock dropped nearly 3% in response.
- Country:
- India
Ola Electric Mobility Ltd's shares experienced a near 3% decline on Friday after the company reported a substantial net loss increase to Rs 564 crore for the December quarter.
On the BSE, the stock closed at Rs 70.02 per share, reflecting a 2.56% decrease, with intra-day lows reaching 4.88% down to Rs 68.35. Likewise, on the NSE, shares fell by 2.42% to settle at Rs 70.10.
The widening net loss is attributed to enhanced competition and a Rs 110 crore one-off cost to correct service issues. Despite a good October spurred by festival sales, revenue fell to Rs 1,045 crore. However, Ola Electric plans to leverage technology and network expansion to improve future performance.
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