OYO's first-ever net profit hits ₹229 crore, surpassing FY24 estimates

IPO-bound unicorn OYO reported its first-ever net profit at ₹229 crore during the financial year ended March, as per its latest annual report.

Ritesh Agarwal, OYO founder, acknowledged on X (formerly Twitter) on Wednesday that the numbers have exceeded his earlier estimate of ₹100 crore for the 2023-24 fiscal year.

"One big learning for me over the years is under-promise and over-deliver. Our audited results are published post-adoption by the board. The effort of OYOpreneurs has delivered ₹229 crore net profit, exceeding my earlier estimate of ₹100 crore," Agarwal tweeted.

In a statement, OYO informed that the first-ever net profit comes on the back of eight consecutive quarters of positive Adjusted EBITDA.

"OYO's Adjusted EBITDA grew by 215% to reach nearly ₹877 crore in FY24, up from about ₹277 crore in FY23," the travel tech platform reported in its annual report.

Aiming for global expansion, the company said it has acquired K&J Consulting, which operates the premium rental homes company Checkmyguest Group, based in Paris, France, through a share swap arrangement.

To capitalise on this global growth, the company is issuing 7,92,84,312 "Series G Fully and Compulsory Convertible Cumulative Preference Shares" for the acquisition.

OYO's Earnings Per Share (EPS) stood at nearly ₹0.36 in FY24, a significant turnaround from the loss per share of about ₹1.93 reported in FY23, the company said.

In FY24, OYO added several new hotels, driven by strong business performance, increased demand, and improved market sentiment, according to its annual report.

"As a result, its inventory grew from 12,938 at the end of FY23 to 18,103 by the end of FY24...Hence, the company's consolidated revenue from operations remained stable at nearly ₹5,388 crore against around ₹5,463 crore in FY23," the report stated.

The company's total costs decreased by about 13% to nearly ₹4,500 crore in FY24 from around ₹5,207 crore in the previous year.

The annual report attributed this reduction to a leaner cost structure, "by reduction in general & administrative spend and optimising marketing spends while maintaining topline growth".

A company's Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) is a measure of its profitability of the operating business only, thus before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset base.