Oyo clocks Rs 30-crore profit in Q3FY24, founder Ritesh Agarwal tells employees
BCCL
Synopsis
People familiar with the matter said Agarwal stated that in the upcoming quarters, it anticipates a consistent rise in PAT, driven by ‘enhanced’ patron confidence, ‘improved’ customer experience, and ‘favourable’ market conditions conducive to sustained growth.
By Anumeha Chaturvedi, ETMarkets.com
Oravel Stays which operates hospitality chain Oyo has clocked a profit after tax of Rs 30 crore in the third quarter of this fiscal year. People familiar with the matter told ET Oyo’s founder Ritesh Agarwal told employees in an internal townhall on Friday that it has doubled its profit after tax (PAT) sequentially in the third quarter of this financial year.
The company reported a maiden profitable quarter with a PAT of over Rs 16 crore in the second quarter. People familiar with the matter said Agarwal stated that in the upcoming quarters, it anticipates a consistent rise in PAT, driven by ‘enhanced’ patron confidence, ‘improved’ customer experience, and ‘favourable’ market conditions conducive to sustained growth.
According to sources, he also shared that the company clocked adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) of Rs 750 crore in 2023 and expects to clock adjusted EBITDA of Rs 1000 crore in the financial year 2024, surpassing its earlier projected adjusted EBITDA estimate of Rs 800 crore for the financial year 2024. Oyo had previously defined adjusted EBITDA as EBITDA adjusted for transformation expenses made on assets of its hotel partners.
Agarwal said Oyo’s revenue also grew by 10% year on year in the third quarter.
People familiar with the matter said Agarwal also shared that Oyo saw a 27% increase in the number of hotels on its platform to 17,000 over the last year.
Oyo recently concluded a debt buyback of Rs 1620 crore. The back process involved the repurchase of 30% of Oyo's outstanding TLB due June 2026.
Global credit rating agencies Fitch & Moody’s have termed OYO’s move to repurchase its outstanding debt as positive.
Fitch wrote that this action will improve OYO’s EBITDA leverage and that they may take positive rating action.
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Oyo declined to comment on the matter.The company reported a maiden profitable quarter with a PAT of over Rs 16 crore in the second quarter. People familiar with the matter said Agarwal stated that in the upcoming quarters, it anticipates a consistent rise in PAT, driven by ‘enhanced’ patron confidence, ‘improved’ customer experience, and ‘favourable’ market conditions conducive to sustained growth.
According to sources, he also shared that the company clocked adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) of Rs 750 crore in 2023 and expects to clock adjusted EBITDA of Rs 1000 crore in the financial year 2024, surpassing its earlier projected adjusted EBITDA estimate of Rs 800 crore for the financial year 2024. Oyo had previously defined adjusted EBITDA as EBITDA adjusted for transformation expenses made on assets of its hotel partners.
Agarwal said Oyo’s revenue also grew by 10% year on year in the third quarter.
People familiar with the matter said Agarwal also shared that Oyo saw a 27% increase in the number of hotels on its platform to 17,000 over the last year.
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He also said the company optimised its operating cost by 15% in quarter three of this fiscal. The company last filed its annual accounts for the financial year 2023. Stocks Recommendations
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The company achieved operational profitability in financial year 2023 with an adjusted EBITDA of Rs 275 crore.Global credit rating agencies Fitch & Moody’s have termed OYO’s move to repurchase its outstanding debt as positive.
Fitch wrote that this action will improve OYO’s EBITDA leverage and that they may take positive rating action.
(You can now subscribe to our ETMarkets WhatsApp channel)
