OLA Electric's First Earnings Post Listing
Transcript
00:00EVs and Ola's annual flagship event was headlined by its electric motorbike foray, the rebranding
00:06of Ola cabs to Ola consumer as well as a slew of launches.
00:09Our quarterly Rishabh Bhatnagar spoke to Bhavish Agarwal to dissect the rationale behind these
00:13announcements.
00:14Listen in.
00:15We announced our first ever listed company earnings yesterday and the key highlight was
00:20that our automotive segment was almost EBITDA positive.
00:24We were negative 2% on EBITDA and that is actually because there was about a 23 odd
00:30crore PLI reversal that we had to take in this quarter given the government policy change.
00:35Had that not happened, we were actually EBITDA neutral almost.
00:38So the automotive segment, many people were questioning earlier is EVs a sustainable business
00:43or not.
00:44We I think have proven that EVs is a sustainable business, we are EBITDA neutral and this is
00:49not the end.
00:50We have a lot of journey ahead to improving gross margins and through operating leverage
00:54improving EBITDA margins.
00:55Now let's come to the bike.
00:57The bike is built on the same platform as the scooter.
01:00So as we bring the bike to scale over the course of the next couple of quarters, it's
01:05going to bring more volumes on the same factory, same investments and hence more margins, more
01:10operating leverage.
01:11The bikes are going to start with the same gross margin where the scooter is today, not
01:15where the scooter was three years ago because the same platform, same supply chain.
01:20In terms of market share, Babish, what sort of market share are you seeking in the next
01:24year, two years, three years?
01:26We don't seek market share, Rishabh.
01:27We seek consumer love and we focus on building disruptive products which really capture consumer's
01:33imagination.
01:34And that's what you see with our bikes here today.
01:36We've launched three bikes, not one but three bikes.
01:39The whole Roadster series, Roadster Pro, Roadster and Roadster X from 75,000 rupees up to two
01:45and a half lakh rupees for whatever customer segment, whatever price point they like, they
01:50can choose their product.
01:51So we feel very excited.
01:53Electrification in bikes will be quite fast given the market is already conditioned to
01:57EVs compared to three years ago.
01:59And we hope the consumers adopt our products.
02:02And if you look at the marketplace of EVs and motorbikes, actually there is no competition.
02:08So we are the vanguard of this EV frontier in motorbikes.