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OYO Achieves First Profitable Year with PAT of Nearly Rs 100 Crore in FY24, Says Founder

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Oravel Stays, the operator of the hospitality chain OYO, has reported its first net profitable year in FY24, achieving a profit after tax (PAT) of nearly Rs 100 crore. This milestone marks the eighth consecutive EBITDA positive quarter for the company.

In a post on the social media platform X, OYO’s founder Ritesh Agarwal expressed his pride and gratitude for the achievement. “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 crores. This was our eighth consecutive quarter of a positive EBITDA and we also have a cash balance of about Rs 1000 crores,” Agarwal stated.

Sources familiar with the matter confirmed that Agarwal had announced OYO’s maiden net profitable year, posting a PAT of Rs 99.6 crore ($12 million) in FY24 during a townhall meeting. However, OYO declined to comment on the matter officially.

Adding to the company’s good news, global rating agency Fitch recently upgraded OYO’s long-term foreign- and local currency issuer default rating to ‘B’ from ‘B-‘. The rating agency also upgraded OYO’s senior secured term loan facility to ‘B’ from ‘B-‘, citing the company’s improving financial profile, driven by sustained EBITDA growth and a recent $195-million debt buyback.

Agarwal highlighted the rating upgrade in his social media post, stating, “The global credit rating firm Fitch has also taken note of our improved performance and strong cash flows, upgrading our credit rating. I see growth ahead not just in India with emerging travel trends such as premiumisation, spiritual travel, business travel and conferences, destination weddings but also in our other key markets of Nordics, South East Asia, US and UK. FY25 will clearly be even more exciting.”

In the recent townhall, Agarwal mentioned that OYO clocked an adjusted EBITDA of Rs 888 crore ($107 million) for the full fiscal year, up from Rs 274 crore ($33 million) in FY23. The company added about 5,000 hotels and 6,000 homes globally in FY24. The gross booking value (GBV) per storefront per month for hotels stood at Rs 3.32 lakh ($4,000).

OYO’s gross margins improved significantly in FY24, reaching Rs 2,508 crore ($302 million), up from Rs 2,350 crore ($283 million) in FY23. Operating costs also saw improvement, decreasing from 19% of GBV in FY23 to 14% of GBV in FY24.