IPO-Bound OYO’s Profit Doubles QoQ To INR 30 Cr In Q3 FY24: CEO Ritesh Agarwal

IPO-bound hospitality unicorn OYO posted a second consecutive profitable quarter in Q3 of financial year 2023-24 (FY24), doubling its profit after tax to INR 30 Cr, founder and CEO Ritesh Agarwal said.

During a town hall meeting on Friday (February 9), Agarwal said that the September quarter was the maiden profitable quarter for the startup with a PAT of over INR 16 crore, sources told Inc42.

“In the upcoming quarters, we anticipate a consistent rise in PAT, driven by enhanced patron confidence, improved customer experience, and favourable market conditions conducive to sustained growth,” Agarwal said. 

Agarwal said OYO’s revenue grew nearly 10% year-on-year in Q3 FY24, while it also “optimised its operating cost” by 15% compared to the year-ago quarter, the sources added.

The number of hotels on the platform also increased nearly 27% to 17,000 over the last year, he said.

It is pertinent to note that OYO saw its net loss decline 34% to INR 1,286.5 Cr in FY23 from INR 1,941.5 Cr in FY22. Operating revenue grew 14% to INR 5,463.9 Cr in FY23 from INR 4,781.3 Cr in the previous fiscal year.  

During the town hall, Agarwal said that the startup’s adjusted EBITDA stood at INR 275 Cr in FY23 and this is expected to rise to about INR 1,000 Cr in the ongoing fiscal year.

Recently, OYO also repaid INR 1,620 Cr of its outstanding Term Loan B (TLB). This accounted for about 30% of its TLB which has a term till June 2026.

Last month, it was also reported that the startup was in talks with Malaysian sovereign wealth fund Khazanah Nasional Berhad to raise close to $400 Mn in a fresh funding round at a valuation of $6 Bn. 

Founded in 2012 by Agarwal, OYO offers holiday homes, casino hotels, coworking spaces, budget hotels, corporate stays and more.

The SoftBank-backed startup filed its draft red herring document (DRHP) for its initial public offering (IPO) via confidential route last year. It also slashed the IPO size to $400-$600 Mn from INR 8,430 Cr ($1.2 Bn) it planned to raise when it first filed the DRHP in 2021.

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