OYO achieves first profitable year with ₹100cr gains in FY24
What's the story
Travel tech platform OYO has reported its first profitable fiscal year in 2023-24, recording a net profit of nearly ₹100 crore, as revealed by founder Ritesh Agarwal on social media. This achievement marks the company's eighth consecutive quarter of positive EBITDA. Additionally, the firm boasts a cash balance of around ₹1,000 crore. "We had our maiden net profitable financial year at nearly ₹100 crore," stated Agarwal.
Twitter Post
Take a look at Agarwal's post
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.
— Ritesh Agarwal (@riteshagar) May 30, 2024
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…
Credit upgrade
Fitch Ratings upgrades OYO's credit rating
Global credit rating firm Fitch has acknowledged OYO's improved performance and robust cash flows by upgrading its credit rating. This upgrade was extended to OYO's parent company, Oravel Stays, reflecting the hospitality firm's enhanced financial profile. The upgrade included elevating Oravel Stay's long-term foreign and local currency issuer default ratings from 'B-' to 'B' with a 'Stable' outlook. Agarwal also noted this recognition in his announcement.
Business growth
OYO's expansion and financial performance in FY24
In FY24, OYO expanded its portfolio by adding approximately 5,000 hotels and 6,000 homes globally. The company reported a Profit After Tax (PAT) of ₹99.6 crore and an adjusted EBITDA of ₹888 crore. This is a significant increase from the previous fiscal year's EBITDA of ₹274 crore. Agarwal emphasized that these are provisional numbers but assured that the audited financials will likely be close to these figures.
Future outlook
OYO's growth prospects and emerging travel trends
Agarwal expressed confidence in OYO's growth prospects not only in India but also in key international markets such as the Nordics, South East Asia, the US, and UK. He highlighted emerging travel trends like premiumization, spiritual travel, business travel and conferences, destination weddings as potential growth areas. Looking forward to FY25, Agarwal predicted it to be "even more exciting," indicating a positive outlook for the company's future performance.