During a town hall meeting, OYO founder and CEO Ritesh Agarwal told the employees that the startup’s profit after tax stood at INR 132 Cr in Q1 FY25
Agarwal said that OYO is growing rapidly in the foreign markets and is opening a new property every three days
Earlier this month, OYO said it posted a PAT of INR 229.57 Cr in FY24 as against a net loss of INR 1,286.51 Cr in the previous fiscal year
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Hospitality major OYO is looking to triple its profit after tax (PAT) to INR 700 Cr in the financial year 2024-25 (FY25), its founder and CEO Ritesh Agarwal said.
According to a report by PTI, Agarwal disclosed this to OYO employees during a town hall meeting on Wednesday (August 28). He also shared the financial numbers for the first quarter of the fiscal year.
Agarwal said that OYO’s PAT for the first quarter of FY25 stood at INR 132 Cr as against a loss of INR 108 Cr in the year-ago period.
“This quarter (Q1 FY 2025) we achieved a net profit (PAT) of nearly INR 132 Cr. We saw in this quarter that our hotel business is thriving across key markets of India and South East Asia, and we are seeing consistent growth in the United States,” he was quoted as saying by the news agency.
Earlier this month, OYO said it posted a PAT of INR 229.57 Cr in FY24 as against a net loss of INR 1,286.51 Cr in the previous fiscal year. The profitability largely came as the startup managed to trim its expenses by 13.5% to INR 4,500.97 Cr from INR 5,207.44 Cr in FY23.
However, its revenue dipped 1.4% to INR 5,388.78 Cr during the year from INR 5,463.94 Cr in FY23.
In a statement, the company attributed its improving financial health to increased focus on improving the quality of its storefronts. It said that this focus is reflected in its offerings like Super OYO, a selection of the company’s top quality hotels, as well as the launch of its premium hotels brand Palette.
During the town hall meeting today, Agarwal also said that the company is growing rapidly in the foreign markets.
“In the US, we’re opening a new property every three days, reflecting a very strong momentum in the world’s largest economy. Additionally, we are now the largest value hotel platform in Indonesia. These achievements, along with our success in other key regions, strengthen our confidence in reaching our profit goals,” he said.
It is pertinent to note that OYO recently announced the acquisition of Paris-based premium rental homes company Checkmyguest group for $27.4 Mn.
Earlier this month, OYO raised INR 1,457 Cr (around $175 Mn) in a down round led by Agarwal floated Singapore-based entity Patient Capital, along with J&A Partners and ASK Financial Holdings. The startup was valued at $2.37 Bn in the funding round.
While OYO has been eyeing a public market listing, its IPO has been deferred a couple of times now. Sources told Inc42 that the plans are likely to be pushed back more as the company awaits the terms of the refinancing deal for the $660 Mn Term Loan B availed by founder and CEO Agarwal to buy back shares from investors in 2019.
In its financial disclosure for FY24, the company claimed that it managed to slash its interest outlay through debt buyback of $195 Mn. “The buyback process involved the repurchase of 30% of OYO’s outstanding Term Loan B (TLB), due in June 2026. The company is also aiming to refinance its outstanding debt to a lower markup over the SOFR, to reduce the current effective interest rate from 14% to 10%, leading to annual savings of approximately $15-$17 Mn and extending the repayment date to 2029,” it said.
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