In a recent town hall meeting with employees, Ritesh Agarwal, the Founder and CEO of hospitality and travel-tech giant OYO, shared promising updates regarding the company’s financial performance and future outlook. Agarwal announced that OYO expects a consistent rise in its Profit After Tax (PAT) in the upcoming quarters, following a significant doubling of PAT in Q3 FY24 to Rs 30 crore.
Oravel Stays Ltd, the entity behind the renowned travel tech brand OYO, achieved a milestone in Q2 FY24 by recording its maiden profitable quarter with a PAT of Rs 16 crore. Building on this success, Agarwal expressed optimism about the company’s future profitability, citing factors such as enhanced patron confidence, improved customer experience, and favorable market conditions conducive to sustained growth.
“In the upcoming quarters, we anticipate a consistent rise in PAT, driven by enhanced patron confidence, improved customer experience, and favorable market conditions conducive to sustained growth,” Agarwal stated, buoying the spirits of OYO employees.
Moreover, Agarwal revealed that OYO had achieved an adjusted EBITDA of Rs 750 crore in FY23 and is poised to surpass its earlier projection for FY24, aiming for an adjusted EBITDA of Rs 1,000 crore. This projection represents a substantial increase from the initial target of Rs 800 crore for FY24, signaling OYO’s confidence in its operational capabilities and growth trajectory.
When reached for comment, an OYO spokesperson declined to provide further details.
The positive financial outlook comes on the heels of significant financial maneuvers undertaken by OYO in recent times. Last year, the company prepaid Rs 1,620 crore in debt through a buyback process, repurchasing 30 percent of its outstanding Term Loan B (TLB). Additionally, OYO, a company on the path to an IPO, disclosed in its last public filing that it achieved operational profitability in FY23, boasting an adjusted EBITDA of Rs 277 crore.
Agarwal had previously shared with employees that OYO achieved cash flow positivity in the fourth quarter of FY23, further underlining the company’s financial resilience and growth momentum.
As OYO continues to navigate the evolving landscape of the hospitality and travel industry, these latest developments serve as a testament to the company’s commitment to sustainable growth and financial stability, instilling confidence in employees and investors alike about OYO’s promising future trajectory.
