Hospitality and travel-tech giant OYO, under the leadership of Founder and CEO Ritesh Agarwal, foresees a sustained growth trajectory in its financial performance, anticipating a consistent rise in Profit After Tax (PAT) after doubling it sequentially in Q3 FY24 to Rs 30 crore.
During a recent employee town hall, Agarwal disclosed the significant two-fold surge in the company's profit, underscoring its positive momentum. This achievement follows the milestone of OYO's maiden profitable quarter in Q2 FY24, where it recorded a PAT of Rs 16 crore.
Agarwal outlined key drivers for the anticipated growth, emphasizing enhanced patron confidence, improved customer experience, and favorable market conditions conducive to sustained expansion.
Moreover, OYO, operated by Oravel Stays, demonstrated robust financial performance in the preceding fiscal year, clocking an adjusted Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of Rs 750 crore in FY23. The company now sets its sights higher, aiming to surpass its initial projection of Rs 800 crore for FY24 by achieving an adjusted EBITDA of Rs 1,000 crore.
In a strategic move last year, OYO proactively prepaid Rs 1,620 crore in debt through a buyback process, involving the repurchase of 30 per cent of the company's outstanding Term Loan B (TLB), bolstering its financial flexibility and stability.
As the company gears up for its much-anticipated IPO, its fiscal strength comes to the forefront. OYO had previously disclosed its operational profitability in FY23, reporting an adjusted EBITDA of Rs 277 crore. Notably, Agarwal had shared earlier with employees that OYO achieved cash flow positivity in the fourth quarter of FY23, signaling a robust financial turnaround.
The optimistic outlook presented by Agarwal underscores OYO's resilience and strategic foresight, positioning the company for continued success and growth in the fiercely competitive hospitality and travel-tech landscape.
