New Delhi, Feb 19 (IANS): Ola Electric Mobility Limited is expected to see a decline in VAHAN registrations for February and the company's sales remain steady, according to the company’s exchange filing on Wednesday.
The temporary dip in registrations is due to ongoing contract renegotiations with Rosmerta Digital Services Private and Shimnit India Private, which handle vehicle registrations for Ola Electric.
In its filing, the company said that these discussions have impacted the registration numbers reflected on the VAHAN portal.
“However, it clarified that sales have not been affected and remain strong throughout February,” the company stated.
The filing added that the registration process will return to normal in the coming weeks.
Ola Electric shares were trading at Rs 60.85, up by Rs 0.58 or 0.96 per cent on National Stock Exchange (NSE) during an intra-day trading session.
However, investors have been impacted heavily from the continuous decline in the company’s share price as approximately Rs 40,000 crore has been wiped out since the company stock's peak valuation.
Ola Electric's market capitalisation dropped to Rs 26,187.81 crore from Rs 66,000 crore which went up following its initial surge post-listing.
The concerns which contributed to the stock’s downturn includes mounting losses, declining revenue, ongoing service-related issues and the broader correction in the Indian stock market.
The electric two-wheeler (e2W) firm reported a 50 per cent spike in its consolidated net loss, which widened to Rs 564 crore in Q3 FY25 from Rs 376 crore in Q3 FY24.
Its operating revenue also declined 19 per cent, falling from Rs 1,296 crore to Rs 1,045 crore during the same period.
In an exchange filing last week, the firm attributed the increased losses to "highly competitive intensity and service challenges" during the quarter.
However, the electric mobility company stated that the service-related issues have been resolved, and it remains focused on expanding its presence in the electric two-wheeler market.