Mumbai (IANS) Bhavish Aggarwal-run Ola Electric Mobility on Friday reported a massive net loss of Rs 564 crore in the third quarter (Q3 FY25), an increase of 13.94 per cent compared to a net loss of Rs 495 crore in the previous quarter (Q2 FY25).
On a year-on-year (YoY) basis, the net loss widened from Rs 376 crore in the same quarter last year (Q3 FY24) – a steep 50 per cent increase.
In its stock exchange filing, the company attributed the increased losses to “highly competitive intensity and service challenges” during the quarter.
The company’s revenue from operations fell by 19.36 per cent YoY to Rs 1,045 crore in Q3 from Rs 1,296 crore in the year-ago period.
At the operational level, the company’s EBITDA loss increased to Rs 460 crore in the December quarter, compared to a loss of Rs 301 crore in the same quarter last fiscal.
The consolidated EBITDA, excluding exceptional costs like warranty and one-time employee-related expenses, stood at (-) 29.2 per cent in Q3, compared to (-) 19.4 per cent in the previous quarter (Q2).
Similarly, the auto segment EBITDA, excluding exceptional costs, dropped to -18.5 per cent from -12.8 per cent in Q2.
“October saw strong performance fuelled by festival sales, however, the overall quarter was weak due to high competitive intensity and service challenges,” the company said.
The electric mobility aggregator claimed that the service issues have been fixed and with the network expansion, it has turned the tide on market share and margins.
The company said it continues to focus on growing its presence in the electric two-wheeler market despite the financial challenges, according to its filing.
In Q2 FY25, the electric two-wheeler company’s revenue slumped by 26.1 per cent to Rs 1,214 crore (on-quarter) from Rs 1,644 crore in the first quarter of the fiscal (FY25).
Post the earnings announcement, Ola Electric’s share further plunged to Rs 69.43 apiece, down by 3.35 per cent.
The company’s strong earnings were primarily driven by strong demand for its sport utility vehicles (SUVs) and tractors.
The company’s revenue from operations also grew 17.74 per cent year-on-year (YoY) to Rs 41,464.98 crore, compared to Rs 35,218.32 crore in the year-ago period.
In its exchange filing, M&M stated that its auto and farm segments continued to perform well, contributing to both revenue and profit growth.
“Our businesses continue to demonstrate strength in execution. Auto and farm delivered solid performance on market share and margins, on the back of focused execution,” said Anish Shah, Managing Director and CEO, M&M Ltd.
The auto segment was a major growth driver, with consolidated revenue increasing 21 per cent to Rs 23,391 crore. Profit after tax (PAT) for the segment rose 20 per cent to Rs 1,438 crore.
The company reported a 16 per cent increase in vehicle sales, delivering 2.45 lakh units during the quarter.
M&M’s farm equipment segment also performed well with its highest-ever Q3 market share of 44.2 per cent.
Tractor sales grew 20 per cent to 1.21 lakh units. The segment’s revenue increased by 11 per cent to Rs 9,537 crore, while PAT also saw an 11 per cent rise to Rs 996 crore.
The company’s financial services arm also witnessed significant growth, with assets under management (AUM) rising by 19 per cent.
Meanwhile, Tech Mahindra, the group’s IT services business, recorded strong deal wins and an improvement of 480 basis points in EBIT.
In the financial services sector, Mahindra & Mahindra Financial Services Ltd (MMFSL) recorded a 19 per cent increase in AUM, while standalone PAT surged by 63 per cent.
“MMFSL continues to balance asset quality and growth priorities, with GS under 4 per cent on the back of strong AUM growth,” Shah said.
He further added that the growth gems are demonstrating steady progress towards the long-term objectives.