OYO Records First Profit After 12 Years, Driven by Travel Rebound

Ritesh Agarwal, CEO, Oyo
Preeti Bali / 6:53 am / May 31, 2024

Ritesh Agarwal, CEO of travel tech giant OYO, announced a significant milestone for the company: its first full-year net profit in its twelve-year history. OYO, well-known for its presence on Shark Tank India, achieved a profit after tax of nearly Rs 100 crore in the financial year ending March 2024 (FY24). This marks a dramatic turnaround from the previous year’s loss of Rs 1,286.5 crore.

The positive financial performance is attributed to a resurgence in travel post-pandemic. With increased travel activity, OYO’s business saw a significant boost across all metrics.

Key Financial Highlights

  • Profitability: OYO achieved a net profit of nearly Rs 100 crore in FY24.
  • Operational Efficiency: The company maintained positive Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for eight consecutive quarters. FY24’s adjusted EBITDA reached Rs 888 crore, a substantial increase from Rs 274 crore in FY23.
  • Cash Flow: OYO boasts a healthy cash balance of approximately Rs 1,000 crore.
  • Improved Margins: Gross booking value per storefront per month for hotels rose to Rs 3.32 lakh. Gross margins also improved to Rs 2,508 crore, compared to Rs 2,350 crore in the previous year.
  • Decreased Costs: Operating costs as a percentage of gross booking value (GBV) decreased from 19% in FY23 to 14% in FY24.

Fitch Ratings Upgrade Reflects Improved Financial Health

Prior in the week, Fitch, a main evaluations organization, overhauled OYO’s drawn out unfamiliar and nearby cash guarantor default appraisals to ‘B’ from ‘B-‘. This inspirational perspective mirrors OYO’s supported EBITDA development and a new obligation buyback of $195 million. Fitch likewise redesigned the rating on OYO’s senior got term advance office.

Focus on Expansion and Future Growth

OYO remains committed to expansion in India and key international markets like the Nordics, Southeast Asia, the US, and the UK. The company added approximately 5,000 hotels and 6,000 homes globally in FY24. Emerging travel trends, such as premiumization, spiritual travel, business travel with conferences, and destination weddings, are expected to fuel further growth.

Ritesh Agarwal expressed optimism about the future, stating, “I see growth ahead not just in India with emerging travel trends, but also in our other key markets.” He anticipates an even stronger performance in FY25.


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