OYO, the well-known hospitality company, recently announced its financial year 2023-24 as its first profitable fiscal year, reporting a net profit of nearly ₹100 crore. The founder of OYO, Ritesh Agarwal, expressed his excitement about this milestone, stating that the company’s consistent positive EBITDA and healthy cash balance of around ₹1,000 crore are significant achievements. Agarwal also mentioned that Fitch Ratings acknowledged OYO’s improved performance and strong cash flows.
Looking towards the future, Agarwal shared his optimism about growth not just in India but also in key markets such as the Nordics, Southeast Asia, the US, and the UK. He highlighted emerging travel trends like premiumization, spiritual travel, business travel, conferences, and destination weddings as potential avenues for expansion. The company’s continued growth is evident from the addition of about 5,000 hotels and 6,000 homes globally in FY24.
The recent credit rating upgrade by Fitch for OYO’s parent firm, Oravel Stays, further solidifies the company’s financial standing. The long-term issuer default ratings were upgraded to ‘B’ from ‘B-‘ with a ‘Stable’ outlook, reflecting OYO’s enhanced financial profile.
In FY24, OYO reported a Profit After Tax (PAT) of ₹99.6 crore and an adjusted EBITDA of ₹888 crore, marking a significant increase from the previous fiscal year. Agarwal emphasized that these numbers are provisional but expects the audited financials to align closely with the reported figures. With a positive outlook for FY25, OYO is poised for continued success and growth in the coming years.
