SUMMARY
- OYO has recorded a net profit of Rs 229.5 crore in FY24 improving from the net loss of Rs 1,286.5 crore in FY23.
- Its total revenue decreased by 1% to Rs 5,541.5 crore from Rs 5,601.7 crore in FY23.
- The company managed to cut its total expenses by 16% to Rs 5,725.7 crore in FY24 from Rs 6,799.6 crore in FY23.
IPO-bound OYO has achieved profitability in FY24, recording a net profit of Rs 229.5 crore, improving from the previous year’s net loss of Rs 1,286.5 crore. The company announced its profitability in FY24 last month.
Its revenue from operations remained relatively stable throughout the period under review. The revenue from operations amounted to Rs 5,388.7 crore in FY24, showing a slight decrease of 1.3% from Rs 5,463.9 crore in FY23, as reported in its filings with the Ministry of Corporate Affairs.
The unicorn disclosed last month that its hotel count increased to 18,103 by the end of FY24 from 12,938 hotels a year earlier. However, it also mentioned that these new hotels will require time to reach their full potential.
Including other sources of income, OYO’s total revenue decreased by 1% to Rs 5,541.5 crore from Rs 5,601.7 crore in FY23.
Established in 2012 by Ritesh Agarwal, OYO is a hospitality startup that offers over 40 integrated products and solutions to customers who manage more than 157,000 hotels and home storefronts across over 35 countries, including India, Europe, and Southeast Asia. Its global network extends to over 35 countries.
The company managed to cut its total expenses by 16% to Rs 5,725.7 crore in FY24 from the previous year’s total expenses of Rs 6,799.6 crore.
The largest expense category for OYO was lease costs, which accounted for 46% of its total expenses. This category included both service lease components and lease rentals. However, lease costs decreased by 8% to Rs 2,629.5 crore from Rs 2,843.3 crore in FY23.
The main reason for the decrease in total expenses was the reduction in employee costs. The expenses related to employee benefits fell by 52% to Rs 744.3 crore in FY24 from the previous year’s figure of Rs 1,548.8 crore. This decline was attributed to a 71.3% reduction in expenses related to employee share-based benefits to Rs 180.6 crore in FY24 from Rs 630.3 crore in the previous year.
OYO’s finance costs increased by 24% to Rs 843.8 crore during the year under review from Rs 681.5 crore in the previous fiscal year.
Last month, Agarwal mentioned that OYO is aiming to triple its profit after tax (PAT) to Rs 700 crore in the fiscal year 2025.
While OYO has been considering a public market listing for some time, its IPO has been postponed several times. Sources have indicated that the IPO plans are likely to be further delayed as the company is awaiting the terms of the refinancing deal for the $660 million Term Loan B availed by Agarwal to buy back shares from investors in 2019.
