Share Market Update:
Ola Electric is facing tough times. On Monday morning, the company’s shares fell by 3% during early trading. The shares started trading at ₹68.81 per share but kept falling. By 9:50 AM, the price dropped to ₹67.65 per share before slightly recovering to ₹67.85.
This is the fourth consecutive day of decline in Ola Electric’s share prices, with 87 lakh shares changing hands. The company is also dealing with legal and regulatory issues, as the Central Consumer Protection Authority (CCPA) has issued multiple notices. The Karnataka High Court, based on Supreme Court orders, is hearing a case against the company.
Big Loss in Q3
Under the leadership of Bhavish Aggarwal, Ola Electric reported a ₹564 crore loss in the third quarter. The loss is attributed to intense competition and high expenses on resolving customer service complaints.
In the previous second quarter, the company faced a ₹376 crore loss. Revenue for Q3 stood at ₹1045 crore, down from ₹1296 crore a year ago. Expenses in Q3 were ₹1505 crore, slightly lower than ₹1597 crore in the same period last year.
Festive Season Sales Failed to Boost Profit
Despite good sales during the October 2024 festive season, the company’s overall performance remained weak. Ola Electric stated that it has resolved customer service issues and is focusing on expanding its network to improve market share and profit margins.
