KUALA LUMPUR, February 21 – Oravel Stays Ltd, the parent company of travel tech brand OYO, announced a significant milestone as its profit after tax (PAT) doubled sequentially in Q3 FY24 to approximately INR 30 crore. This achievement follows the company’s maiden profitable quarter in Q2 FY24, where it recorded a PAT of over INR 16 crore. Ritesh Agarwal, Founder & CEO of OYO, shared this update during an employee townhall, attributing the surge in profit to enhanced patron confidence, improved customer experience (Cx), and favorable market conditions conducive to sustained growth. The company also anticipates a consistent rise in PAT in the upcoming quarters.
Moreover, OYO reported an adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of around INR 750 crore or $90 million in 2023, with expectations to reach approximately INR 1000 crore or $120 million in FY24, surpassing its earlier projected estimate. The company’s revenue witnessed a year-on-year growth of approximately 10% in Q3 FY24, accompanied by a 27% increase in the number of hotels on its platform to 17,000 over the past year. Additionally, OYO optimized its operating costs by 15% in Q3 FY24 compared to the same period.
While the company recently concluded a debt buyback of INR 1620 crores, its commitment to reducing financial leverage and ensuring robust financial performance remains steadfast. Both Fitch and Moody’s have viewed OYO’s debt repurchase positively, with Moody’s doubling its adjusted EBITDA estimate for FY2024. OYO’s expansion plans in major spiritual hotspots across India, targeting 400 new properties by the end of 2024, further underscore its commitment to growth and expansion.
