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#OLAELEC Year Ago Comparison

Key Financials (Sep '24 vs. Sep '23):

⚫️ Total Revenue: Increased 42.5% from ₹922 crore to ₹1,314 crore, driven by higher demand and volume expansion.

⚫️ Operating Expenses: Grew 21.8% from ₹1,308 crore to ₹1,593 crore, indicating a significant rise in costs but at a slower pace than revenue growth.

⚫️ Operating Profit (Loss): Narrowed slightly from ₹-435 crore to ₹-379 crore, showing progress toward improved operational efficiency.

⚫️ Operating Profit Margin: Improved from 49.83% to 31.22%, signaling better cost control.

⚫️ Net Profit (Loss): Reduced from ₹-524 crore to ₹-495 crore, but still deep in the red.

Other Info:

⁠- Currently at 782 company owned stores. Targeting 2000 stores by March 2025.

- Delivered 98619 units this quarter- 73.6% growth, compare to year ago quarter.

- CMP: 69.3 and Listing price: 76

Decent result this quarter compared to a year ago, only from the perspective that they have narrowed down their losses. Their progress toward narrowing losses and strong top-line growth are positive signs, but sustained losses, high fixed costs and challenging market conditions could pressure the stock further. Current price action may continue to see downward momentum unless the company shows clear progress toward operating profitability.

I am planning to start positioning on the way down. What do you guys think?