OYO, the hospitality and travel tech platform, reported its first profitable fiscal year in 2023-24 with a net earning of nearly INR 100 crore, founder Ritesh Agarwal said on Thursday.
Agarwal shared on social media platform X that he anticipates growth not only in India but also in OYO’s other key markets including the Nordics, South East Asia, the US, and UK.
Agarwal expressed, “While a delighted customer or a hotel partner brings the biggest smile to my face, our initial financial results for FY24 also humble me.”
“We achieved our first net profitable financial year at nearly INR 100 crore. This marks our eighth consecutive quarter of positive EBITDA, and we maintain a cash balance of around INR 1,000 crore,” he elaborated.
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He also emphasized that global credit rating firm Fitch has recognized OYO’s enhanced performance and robust cash flows, resulting in an upgrade to its credit rating.
“Emerging travel trends such as premiumization, spiritual travel, business travel, conferences, and destination weddings are fueling growth not only in our country, but also in our other key markets of the Nordics, South East Asia, the United States, and the United Kingdom. FY25 looks to be even more exciting,” said the OYO founder.
He added that while these figures are provisional, the audited financials are expected to closely align with them.
Earlier this week, Fitch Ratings announced the upgrade of OYO’s parent firm, Oravel Stays’ rating, attributing it to the hospitality company’s enhanced financial profile.
According to a statement, Fitch upgraded Oravel Stay’s long-term foreign and local currency issuer default ratings from ‘B-‘ to ‘B’, with a ‘Stable’ outlook.
The rating agency also raised the rating on the company’s $660-million senior secured term loan facility due in 2026 to ‘B’ from ‘B-‘.
Financial Performance in FY24
During FY24, OYO expanded its portfolio by approximately 5,000 hotels and 6,000 homes worldwide.
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It also disclosed a PAT (Profit after Tax) of INR 99.6 crore ($12 million) and an adjusted EBITDA of INR 888 crore ($107 million) for the entire fiscal year, marking an increase from INR 274 crore ($33 million) in FY23.
EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, provides an alternative method of measuring profitability compared to net income.
