IPO-bound OYO posts first-ever net profit of Rs 229 crore in FY24

The company’s total expenses fell by about 13 per cent to nearly Rs 4,500 crore in fiscal 2024.

2 minutes of reading Last update: August 14, 2024 | 12:27 PM IST

OYO, which is planning to list on the stock exchanges, posted its first-ever net profit of Rs 229 crore in the financial year ended March, its latest annual report showed.

OYO founder Ritesh Agarwal on Wednesday admitted on X (formerly Twitter) that the numbers have surpassed his earlier estimate of Rs 100 crore for fiscal year 2023-24.

“One of the biggest lessons I have learnt over the years is under-promising and over-delivering. Our audited results are published after the board’s approval. OYOpreneurs’ effort has generated Rs 229 crore in net profit, surpassing my earlier estimate of Rs 100 crore,” Agarwal wrote on Twitter.

In a statement, OYO said the first-ever net profit was the result of eight consecutive quarters of positive adjusted EBITDA.

“OYO’s adjusted net profit (EBITDA) grew by 215 per cent to nearly Rs 877 crore in fiscal 2024, compared to around Rs 277 crore in fiscal 2023,” the travel technology platform said in its annual report.

With a goal of expanding globally, the company announced the acquisition of K&J Consulting, which operates luxury apartment rental company Checkmyguest Group based in Paris, France, in a share swap.

To leverage this global growth, the company has issued 7,92,84,312 “fully and compulsorily convertible cumulative preference shares of Series G” for the purpose of the acquisition.

OYO’s earnings per share (EPS) for FY24 stood at nearly Rs 0.36 crore, a significant improvement over the loss per share of around Rs 1.93 crore reported in FY23, the company said.

OYO opened several new hotels in fiscal 2024, on the back of strong business performance, increased demand and improving market sentiment, according to the company’s annual report.

“As a result, the inventory increased from 12,938 at the end of FY2023 to 18,103 at the end of FY2024… Hence, the company’s consolidated revenue from operations remained stable at nearly Rs 5,388 crore as against approximately Rs 5,463 crore in FY2023,” the report said.

The company’s total costs fell by about 13 per cent to nearly Rs 4,500 crore in fiscal 2024 from about Rs 5,207 crore in the previous year.

The annual report attributed the reduction to a simplification of the cost structure by “reducing general and administrative expenses and optimizing marketing expenses while maintaining revenue growth.”

Earnings before interest, taxes, depreciation and amortization (EBITDA) is a measure of the profitability of operating activities only, that is, before taking into account any effects of debt, government-mandated payments and costs necessary to maintain assets.

(Only the headline and image of the report may have been edited by the Business Standard team; the rest of the content is automatically generated from a syndicated feed.)

First published: August 14, 2024 | 12:27 PM IST