OYO expects more than Rs 5,700 Cr revenue in FY23
Founder and Group CEO Ritesh Agarwal told employees that OYO is aspiring to reach an adjusted EBITDA of nearly Rs 800 crore in the next financial year.
Hospitality and travel-tech firm estimates its revenue in FY23 will be more than Rs 5,700 crore, up 19% from Rs 4,780 crore it had recorded in FY22, according to its Founder and Group CEO Ritesh Agarwal.
At a town hall on Monday, Agarwal told employees that OYO is aspiring to reach an adjusted EBITDA of nearly Rs 800 crore in the next financial year.
Sustained growth in India, Indonesia, the US, and the UK, and relevant optimisation and synergies in its European vacation homes business, have led to better financials of the company, he said in a presentation at the gathering with employees.
Agarwal outlined that the key focus areas of OYO in the calendar year 2023 will be on Profit After Tax (PAT) along with consistent momentum in EBITDA, achieving cash flow positive in FY24, cost efficiency and improving contribution margins, and making storefront additions, among others.
EBITDA refers to Earnings Before Interest, Taxes, Depreciation and Amortisation.
He said the company is expected to close FY23 with more than 1.72 lakh storefronts, compared to 1.69 lakhs in FY22, a growth of nearly 2%.
When contacted, an OYO spokesperson declined to comment.
Agarwal told the employees that OYO has a current cash balance of Rs 2,700 crore, and the company hoped it would end up consuming very little of it for existing operations.
With an improvement in cash flow, OYO's reliance on external funds has also gradually decreased over time, he added.
The company reported an adjusted EBITDA of Rs 63 crore in the first half of FY23 in its filing with the Securities and Exchange Board of India (SEBI) in an update to its Draft Red Herring Prospectus (DRHP).
In January, SEBI asked OYO to refile the draft IPO (Initial Public Offering) papers with certain updates. In September 2021, it filed preliminary documents for an Rs 8,430 crore IPO.
The IPO was delayed due to the then volatile market conditions, making the company prepare to settle for a lower valuation at around $7-8 billion instead of the $11 billion it was targeting initially.
Edited by Suman Singh