Hospitality unicorn Oyo has reported its first-ever profit after tax (PAT) of about Rs 229 crore for the financial year 2023-24 (FY24), as revealed in its latest annual report. The company stated that this remarkable turnaround comes on the heels of eight consecutive quarters of positive Adjusted EBITDA, demonstrating the company’s sustained financial improvement.
OYO CEO Reflects on First Annual Profit
Ritesh Agarwal, the founder of OYO, shared this milestone with platform X (previously known as Twitter) to announce the company’s financial achievement.
Agarwal tweeted. “One big learning for me over the years is under-promise and over-deliver. Our audited results are published post-adoption by the board. The effort of OYOpreneurs has delivered Rs 229 crore net profit, exceeding my earlier estimate of Rs 100 crore”.
Financial performance of OYO
As per the latest annual report, financial performance has shown significant growth. Let’s delve into the key aspects of OYO’s financial performance that contributed to this achievement.
OYO’s EBITDA Surge
The Gurugram-based company’s adjusted EBITDA saw a 215% growth to Rs 877 crore in FY24 from Rs 277 crore in the last fiscal year.
Positive EPS (Earning per share)
OYO’s Earnings Per Share (EPS) stood at nearly Rs 0.36 in FY24, marking a significant turnaround from the loss per share of approximately Rs 1.93 reported in FY23. This positive shift in EPS reflects the company’s improving financial health and operational efficiency.
Strong Performance Drives OYO’s Inventory Growth
The company experienced significant growth in FY24, driven by strong business performance and increased market demand. As a result, it expanded its hotel inventory from 12,938 properties in FY23 to 18,103 in FY24.
Revenue Consistency Amid Expansion
The annual report stated, “The new additions will require time to reach their full revenue potential, with financial returns expected to become evident in the future. As a result, the company’s consolidated revenue from operations remained stable at ₹5,388 crore, compared to ₹5,463 crore during the financial year 2022–23.”
Strategic Cost Optimization
The company successfully decreased its total expenses by a significant 13%, from Rs 5,207 crores in the previous fiscal year to Rs 4,500 crores in FY24. This remarkable achievement was the result of:
- Streamlining operational expenses
- Reducing general and administrative costs
- Optimizing marketing expenditure
Notably, OYO managed to execute these cost-cutting measures while simultaneously growing its revenue, showcasing the company’s ability to balance efficiency with expansion.
OYO Strategic Plan and Global Expansion
The annual report highlighted OYO’s global expansion efforts, noting growth across Europe, the US, Southeast Asia, and the Middle East.
Europe, being the largest market for vacation rentals, presents a significant opportunity for OYO’s home business, OVH.
As part of its international growth strategy, OYO has acquired K&J Consulting, which manages the luxury rental homes company Checkmyguest Group in Paris, France. This acquisition was completed through a share swap agreement.
About OYO
OYO Rooms is an Indian multinational hospitality chain that operates a network of branded budget hotels and homes. It serves as an aggregator for these venues, providing a platform that connects customers with various hotels.
Founded in 2012, OYO is backed by SoftBank, which is a significant investor in the parent company Oravel Stays, the entity that operates OYO Hotels and Homes.
As the company prepares for its initial public offering (IPO), it has successfully secured a substantial Rs 1,457 crore through its latest Series G funding round.
Investment Opportunities in OYO’s Unlisted Shares
OYO is spread across 80 countries with 1 million rooms, and this new hotel is an addition to the list but can contribute more than a few rooms combined. The growth line of OYO is rising each year and is driving many to invest in it. The OYO share price is currently trading around ₹44-₹45 per share.
If you want to invest in OYO, today is the best time. Get in touch with Stockify before the OYO rooms share price increases. Stockify is India’s leading unlisted stock trading platform. Helping investors like you invest in trending unlisted shares from the comfort of your zone.
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