 "Ola Electric's shares gain on reports of layoff over 500 employees")
Ola Electric Mobility shares rose 2.54 per cent at Rs 68.95 per share on the BSE in Friday’s intraday deals. This came after reports emerged of the company planning to lay off around 500 of its employees.
According to reports, Bhavish Aggarwal led Ola Electric is undergoing a restructuring exercise impacting over 500 employees, approximately 12 per cent of its 4,000-strong workforce. The process, initiated months ago, is expected to conclude next month.
"The objective is to eliminate redundant roles, enhance efficiency, improve margins, and achieve profitability," a source stated.
Ola Electric conducted similar restructuring efforts in 2022 ahead of its initial public offering (IPO). The company launched its IPO on August 2, 2024, closing subscriptions on August 6, with shares listed on the BSE and NSE on August 9.
Ola Electric operated 782 company-owned stores as of September 2024, with each store achieving an average of 130 sales per quarter—roughly 2-3 times the industry average. The company aims to expand its network to 2,000 stores, including co-located service infrastructure, by March 2025.
The company boasts the most extensive EV scooter portfolio in the market, offering six models priced between Rs 75,000 and Rs 1,50,000. Looking ahead, Ola Electric is venturing into other two-wheeler (2W) and three-wheeler (3W) categories. It plans to launch 20 new products over the next two years, with at least one new product introduced each quarter.
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Q2 results
Ola Electric reported a reduced net loss of Rs 495 crore for the September 2024 quarter, compared to Rs 524 crore in the same period last year. However, on a sequential basis, the company’s loss widened from Rs 347 crore recorded in the preceding June quarter.
Revenue from operations grew 39 per cent year-on-year to Rs 1,214 crore in the reporting quarter.
In terms of the overall EV two-wheeler market, Ola Electric continues to dominate the segment. The firm, in fact, saw retail sales of around 50,000 units in October and commands a market share of around 30 percent.
At 10:05 AM; the shares of the company were trading 0.83 per cent higher at Rs 67.80 a piece. By comparison, the BSE Sensex was down 1.01 per cent at 77,933.46 level.