Founder & CEO Ritesh Agarwal gave optimistic predictions for the company’s profitability during a recent town hall meeting at OYO. He highlighted a twofold sequential improvement in Profit After Tax (PAT) to ₹30 crore in Q3 FY24. This is a positive development that indicative of increased consumer confidence, better customer service, and advantageous market conditions in the travel-tech and hotel industries.
Doubling Profits:
Ritesh Agarwal disclosed that Oravel Stays, the operator of OYO, attained its inaugural profitable quarter during Q2 FY24, registering a Profit After Tax of ₹16 crore. Additionally, he emphasized a twofold sequential enhancement in Profit After Tax to ₹30 crore in Q3 FY24. This noteworthy accomplishment underscores the company’s dedication to financial sustainability and operational excellence.
Optimistic Perspective:
Ritesh Agarwal expressed optimism for the upcoming quarters, predicting further PAT growth led by improved customer experiences, rising patron confidence, and favorable market circumstances. Leveraging its momentum, the company hopes to outperform earlier predictions and reach an adjusted EBITDA of ₹1,000 crore in FY24.
Debt Repayment :
In a strategic move, OYO successfully prepaid ₹1,620 crore in debt through a buyback process, reducing its outstanding Term Loan B (TLB) by 30%. This proactive approach towards debt management demonstrates OYO’s commitment to financial health and stability. The repayment of this debt is scheduled for June 2026.
IPO Plans:
Moreover, OYO, a potential IPO-bound firm, disclosed operational profitability in FY23, reporting an adjusted EBITDA of ₹277 crore. Ritesh Agarwal’s previous announcement regarding positive cash flow in the fourth quarter of FY23 further reinforces the company’s financial resilience and readiness for future growth initiatives.
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OYO Financial Performance Highlights:
₹(In Crore)
| Fiscal Year/Quarter | Profit After Tax (PAT) | Adjusted EBITDA | Debt Repayment |
| FY23 | – | 277 | – |
| Q1 FY24 | – | 175 | – |
| Q2 FY24 | 16 | – | – |
| Q3 FY24 | 30 | – | – |
| FY 24 (Projected) | – | 1000 | 1620 |
The chart visually represents the data from the table, providing a graphical overview of OYO’s financial performance, including PAT, Adjusted EBITDA, and Debt Repayment over the mentioned fiscal years and quarters.
Conclusion:
With a strong emphasis on profitability, customer satisfaction, and market expansion, OYO under the leadership of Ritesh Agarwal continues to chart a path towards sustained success in the hospitality and travel-tech industry. As the company navigates through evolving market dynamics, its strategic focus on financial prudence, operational efficiency, and innovation positions OYO as a formidable player poised for continued growth and value creation in the years ahead.
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