OYO reports first-ever PAT of Rs 229 Cr; bolsters global expansion with new acquisition

Hospitality unicorn OYO has reported its first-ever profit after tax (PAT) of about Rs 229 crore in FY24.

According to the company’s annual report for the financial year, the Gurugram-based company's adjusted EBITDA saw a 215% growth to Rs 877 crore in FY24 from Rs 277 crore in the last fiscal year.

“The effort of OYOpreneurs has delivered Rs 229 cr net profit, exceeding my earlier estimate of Rs 100 cr. Now with Rs 0.36 EPS done, now to Rs 1 EPS and beyond at FY25. Lots of improvements still left to do. Proud of what we are building together," Founder Ritesh Agarwal posted on social media platform X.

EPS refers to earnings per share.

OYO added several new hotels this fiscal, growing its inventory from nearly 13,000 to over 18,000.

The company’s consolidated revenue from operations remained stable at approximately Rs 5,388 crore in FY 23-24 compared to Rs 5,463 crore in FY 22-23.

OYO has managed to keep costs down by about 13% to Rs 4,500 crore this financial year from Rs 5,207 crore in FY23.

Among geographies, the company has seen growth across Europe, the US, Southeast Asia, and the Middle East, the annual report stated.

OYO’s homes business, OVH, has benefitted from the increase in European leisure travel trends.

The company is acquiring K&J Consulting, which operates Checkmyguest Group in Paris, France, to boost its global presence.

"OYO gets to acquire premium homes inventory primarily through a share swap over a period of time, in addition to some cash outgo for the acquisition, which gets quickly offset since it's a cash-generating business," an OYO spokesperson said.

OYO said it is issuing nearly eight crore "Series G Fully and Compulsory Convertible Cumulative Preference Shares" to acquire K&J Consulting.

OYO has over 300 properties in the US and is boosting its premium storefront count in the core Southeast Asian markets of Indonesia, Malaysia and Thailand, the report stated.

OYO, which started operations in 2012, is backed by investors including InCred Wealth, Patience Capital Group, J&A Partners, and JP Morgan. The IPO-bound company recently raised Rs 1,457 crore in its Series G funding.