Travel tech firm OYO has reported its first-ever profit after tax (PAT) of Rs 229 crores for FY24, according to the company's annual report. This milestone follows eight consecutive quarters of positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). OYO's adjusted EBITDA grew by 215% to reach Rs 877 crores in FY24, up from Rs 277 crores in FY23.
OYO's earnings per share (EPS) stood at approximately Rs 0.36 in FY24, a significant turnaround from the loss per share of Rs 1.93 reported in FY23. "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 INR 229 cr net profit, exceeding my earlier estimate of INR 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," said Ritesh Agarwal, the founder of OYO, on X.
Agarwal recently invested Rs 830 crores in the company through his wholly-owned entity, Patient Capital. This investment brings the total funding for the latest round to Rs 1,457 crores. Capitalizing on its improved financials, the company is issuing 7,92,84,312 "Series G Fully and Compulsory Convertible Cumulative Preference Shares" for the acquisition of K&J Consulting, which operates the premium rental homes company Checkmyguest group from Paris, France.
An OYO spokesperson said, "Checkmyguest has a dense presence in Paris, which is one of the most visited cities in the world. 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. In addition, its two affiliated companies, Studio Prestige, a Paris-based luxury apartments rental service, and Helpmyguest, a property design and renovation company, which are part of the deal, provide them with the ability to upgrade or transform the home interiors for a more premium appeal."
According to the annual report, OYO's inventory grew from 12,938 at the end of FY23 to 18,103 at the end of FY24, driven by sound business performance, increased demand, and improved market sentiment. However, the company's consolidated revenue from operations remained stable at approximately Rs 5,388 crores, compared to Rs 5,463 crores in the previous financial year. This stability reflects the time needed for new hotel additions to achieve full revenue potential.
The company’s total costs decreased by about 13% to Rs 4,500 crores in FY24 from Rs 5,207 crores in the previous year, attributed to a leaner cost structure through reductions in general and administrative spend and optimized marketing expenses while maintaining topline growth.
The annual report also highlighted OYO's global expansion efforts, noting growth across Europe, the US, Southeast Asia, and the Middle East. Europe, being the largest market for vacation rentals, presents a significant opportunity for OYO's homes business, OVH.