Oyo's In Depth Financial Analysis of FY 24 Statements.

Softbank-backed Oyo has always been one of the most in-demand companies in the eyes of investors. This holds true, especially since last year when the hospitality chain increased its operations with a turnaround in Oyo’s profitability.

This blog provides an in-depth analysis of Oyo's Financials for 2024.

Revenue performance & growth

Oyo’s revenue from operations stood at Rs 5,389 crore in FY24, a 1.4% decline from Rs 5,464 crore in FY23. However, the number of hotels increased by almost 40% from 12,938 hotels at the end of FY23 to 18,103 at the end of FY24. This can be a potential investment, giving growth in the future.

1% Drop In Total Income

Oyo’s total income saw a drop of 1% from Rs 5602 crore in FY23 to Rs 5542 crore in FY24. Although this drop is minor, Oyo will need to push up its revenue to grow its profitability.

Is Oyo Profitable In 2024?

Oyo has become profitable for the first time in FY24. The start-up posted a consolidated profit of Rs 141.2 crore. This is a major reversal from the Rs 1286 crore loss reported in FY 23.

Cost-Cutting Measures Taken by Oyo

Oyo’s cost-cutting has been one of the major reasons for gaining profitability this year.

• The company slashed its operating expenses by 8% from Rs 3137.27 crore in FY23 to Rs 2885.44 crore in FY24.

• Their Employee Costs were reduced by a whopping 51%, from Rs 1549 crores in FY 23 to Rs 744 crores in FY 24.

• Finance cost increased by 23% to Rs 843.81 crores from Rs 681.6 crores in FY23. This can be due to the possible refinancing of its loan & bonds done last year.

• Depreciation and other expenses were also reduced by 28% & 8% respectively.

Thus, Oyo Profit 2024 is a direct result of its cost-cutting measures. However, the Oyo revenue and profit growth are what will bring long-term profitability.

Oyo’s Future Profitability Targets

The Softbank-backed start-up is now aiming for a PAT of Rs 700 in FY 25, founder Ritesh Agarwal stated on Aug 24. The company is in the process of growing its sustainability as it prepares for an IPO soon.

Oyo's Strategic Plan and Global Expansion

OYO's annual report highlighted OYO’s global expansion efforts, with 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 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.

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.

Also Read: OYO Acquires US Motel Chain In $525 Million All-Cash Deal

Should you invest in Oyo?

OYO is spread across 80 countries with 1 million rooms, and this new hotel is an addition to the list, but it 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.

Connect with our experts to know more.