OYO records first-ever annual net profit of Rs 100 crore in FY24; Agarwal says, I see growth ahead...'

Shark Tank India judge Ritesh Agarwal-led traveltech giant OYO Rooms has recorded its first full-year net profit in its 12 years of existence.

CEO Agarwal, in a post on X (formerly Twitter), said that the company made a profit after tax of nearly Rs 100 crore in the financial year 2023-24.

This is a big achievement for OYO, given that it reported a loss of Rs 1,286.5 crore in the previous fiscal. The growth is attributed to a resurgence in travel post-pandemic, leading to improved financial performance across the board.

Key financial highlights of OYO's FY24 performance

According to media reports, OYO recorded an adjusted EBITDA of Rs 888 crore in FY24, a significant rise from Rs 274 crore in FY23.

The company also maintained a cash balance of approximately Rs 1,000 crore. This was OYO's eighth consecutive quarter of positive EBITDA, a key measure of operational efficiency.

"We had our maiden net profitable financial year at nearly Rs 100 cr. This was our eighth consecutive quarter of a positive EBITDA, and we also have a cash balance of about ₹1000 cr," Agarwal wrote.

The report further said that the gross booking value per storefront per month for hotels was reported at Rs 3.32 lakh, and gross margins improved to Rs 2,508 crore, up from Rs 2,350 crore in the previous year. Operating costs decreased from 19% of GBV in FY23 to 14% in FY24, it said.

The role of fitch ratings in OYO's financial performance

Earlier this week, ratings firm Fitch upgraded OYO's long-term foreign and local currency issuer default ratings to ‘B’ from ‘B-’ with a ‘stable’ outlook.

This upgrade reflects Oyo's improved financial profile, driven by sustained EBITDA growth and a recent $195 million debt buyback.

Fitch also upgraded the rating on Oyo’s $660 million senior secured term loan facility, with an outstanding $448 million due in 2026, to ‘B’ from ‘B-’.

"The global credit rating firm Fitch has also taken note of our improved performance and strong cash flows, upgrading our credit rating," Agarwal wrote on X.

Focused on expansion

Ritesh Agarwal said OYO is focusing on India as well as key international markets like the Nordics, Southeast Asia, the US, and the UK.

The company added about 5,000 hotels and 6,000 homes globally in FY24.

Emerging travel trends such as premiumization, spiritual travel, business travel, conferences, and destination weddings are expected to drive further growth. 

"I see growth ahead not just in India with emerging travel trends such as premiumization, spiritual travel, business travel and conferences, destination weddings but also in our other key markets of Nordics, South East Asia, US and UK," Agarwal said, adding, "FY25 will clearly be even more exciting."

While a delighted customer or a hotel partner brings the biggest smile on my face, our first cut financials of FY24 have me humbled as well.

We had our maiden net profitable financial year at nearly Rs 100 cr. This was our eighth consecutive quarter of a positive EBITDA and we…

— Ritesh Agarwal (@riteshagar) May 30, 2024