Nov 12 (Reuters) - Ola Electric's quarterly loss narrowed on Thursday, supported by restructuring and cost-control measures.
The electric-vehicle maker reported a consolidated loss of 3.62 billion rupees ($38.66 million) for the three months ended September 30, compared with a loss of 4.18 billion rupees a year ago.
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The Bhavish Aggarwal-led company implemented workforce restructuring, cut warranty expenses and tightened working-capital cost management in recent quarters as part of efforts to improve profitability
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These measures contributed to a 28.4% drop in second-quarter expenses to 6.39 billion rupees
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Consolidated gross margin stood at 29.93% compared with 30.9% a year earlier
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The company, however, said it expects gross margin to reduce in the third and fourth quarters as its expands its dealer-store network, though operating margin is expected to improve meaningfully
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Ola Electric, once India's largest electric two-wheeler maker by sales continue to face pressure on sales amid aggressive competition from peer Ather Energy and legacy automakers TVS Motor, Bajaj Auto and Hero MotoCorp
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The company sold 41,651 units in the second quarter, compared with 51,775 units a year ago, according to vehicle registration data, causing revenue to fall about 39% to 4.21 billion rupees
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"Demand is no longer our constraint, supply is," the company said in its shareholder letter, adding that it is working closely with supplier partners to scale capacity and output, month by month
($1 = 93.6400 Indian rupees)
Reporting by Saikeerthi in Bengaluru; Editing by Shilpi Majumdar
Source: Reuters