OYO, a unicorn gearing up for its IPO, disclosed its inaugural net profit of ₹229 crore for the financial year ending in March, according to its most recent annual report.
On Wednesday, Ritesh Agarwal, the founder of OYO, posted on X (previously known as Twitter) that the figures have surpassed his previous projection of ₹100 crore for the 2023-24 fiscal year.
"One big learning for me over the years is under-promise and over-deliver. Our audited results are published post-adoption by the board. The effort of OYOpreneurs has delivered ₹229 crore net profit, exceeding my earlier estimate of ₹100 crore," Agarwal tweeted.
In a statement, OYO informed that the first-ever net profit comes on the back of eight consecutive quarters of positive Adjusted EBITDA.
"OYO's Adjusted EBITDA grew by 215 per cent to reach nearly ₹877 crore in FY24, up from about ₹277 crore in FY23," the travel tech platform reported in its annual report.
The company has announced the acquisition of K&J Consulting, the owner of the premium rental homes company Checkmyguest Group in Paris, France, as part of its global expansion strategy, by utilising a share swap arrangement.
To fund its global growth, the company will be issuing 7,92,84,312 "Series G Fully and Compulsory Convertible Cumulative Preference Shares" for the acquisition.
OYO reported a significant improvement in its Earnings Per Share (EPS) in FY24, with it standing at nearly ₹0.36, a notable turnaround from the loss per share of about ₹1.93 in FY23, as per the company's announcement.
OYO's annual report states that in FY24, the company expanded its portfolio by adding numerous new hotels, driven by strong business performance, increased demand, and improved market sentiment.
"As a result, its inventory grew from 12,938 at the end of FY23 to 18,103 by the end of FY24...Hence, the company's consolidated revenue from operations remained stable at nearly ₹5,388 crore against around ₹5,463 crore in FY23," the report stated.
The total expenses of the company decreased by approximately 13 per cent to almost ₹4,500 crore in the fiscal year 2024 from about ₹5,207 crore in the previous year.
According to the annual report, this decrease was due to a more efficient cost structure, achieved by cutting general and administrative expenses and optimising marketing spending while still maintaining growth in revenue.
EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortisation, is a metric used to measure only the profitability of a company's core operations, without factoring in the effects of debt, required payments, and costs necessary to maintain its assets.
Follow us
