Oyo achieves its first year of profit in FY24 with a net profit of Rs 100 crore

Oyo CEO Ritesh Agarwal revealed in a post on X that the hospitality sector company has recorded its inaugural annual profit of Rs 100 crore for the fiscal year 2023-24.

"We experienced our first ever year of making a profit, with an amount close to Rs 100 cr." Agarwal mentioned on X that they had a positive EBITDA for the eighth quarter in a row and also had around Rs 1000 cr in cash.

Agarwal stated that from January to March, there was the eighth consecutive quarter of positive Ebitda, along with a cash balance of around Rs 1,000 crore.

Nevertheless, he made it clear that these numbers were subject to change.

The announcement highlighted that Fitch, a global credit rating agency, acknowledged Oyo's enhanced performance and robust cash flows by raising its credit rating.

Speaking on the matter, the spokesperson stated, "Fitch, a leading international credit rating agency, has recognized our improved performance and strong cash flows, resulting in an upgrade to our credit rating."

While a delighted customer or a hotel partner brings the biggest smile on my face, our first cut financials of FY24 have me humbled as well.

We had our maiden net profitable financial year at nearly Rs 100 cr. This was our eighth consecutive quarter of a positive EBITDA and we…

— Ritesh Agarwal (@riteshagar) May 30, 2024

Oyo, established in 2012 with support from SoftBank, has yet to submit audited financial statements for the 2023-2024 fiscal year.

Agarwal expressed optimism about future growth, citing emerging travel trends not only in India but also in key markets like the Nordics, Southeast Asia, the US, and the UK. These trends encompass premium travel, spiritual journeys, business trips, conferences, and weddings.

While Agarwal did not disclose revenue figures for 2023-24, Oyo's revenue for the year was around 700 million USD (around Rs 5,800 crore).

In contrast, the company reported a net loss of Rs 1,287 crore for the financial year 2022-23, down 34% from the previous financial year. Revenue from operations was Rs 5,464 crore.

Oyo recently withdrew its draft initial public offering (IPO) application from the Securities and Exchange Board of India.

Instead, it seeks to raise funds from investors at a significantly lower valuation. Although the details of the funding round are still to be determined.

Media reports say that Oyo is looking to raise 70-80 million USD (roughly Rs. 600-650 crore).

Agarwal had earlier told company staff in February that Oyo had posted a net profit of Rs 30 crore during the third quarter of 2023-24, following its first profit in the second quarter.