According to an email issued on Tuesday by OYO’s founder and CEO Ritesh Agarwal to the company’s top management, Oravel Stays Ltd, which owns the travel technology brand OYO, is expected to declare its first-ever profit after tax of more than Rs 16 crore for the current quarter ending in September.
“This year, OYO celebrates its tenth anniversary, making it historic and unique. I have some news that fits this occasion to share. According to this quarter’s trend, Q2 FY24 will be our first successful quarter, with a projected profit after tax (PAT) of more than Rs 16 crore, Agarwal wrote in an email to the company’s executives that was obtained by PTI.
Agarwal said the following when discussing prospects for future growth: “We see immense potential in future growth markets like the US & UK where we are dedicated to fostering customer confidence and utilising cutting-edge technologies, like contactless check-in, to meet their evolving needs.”
He added that the company’s operating revenue increased by over 14% to Rs 5,463 crore in FY23 from Rs 4,781 crore in FY22, according to the recently issued annual report.
“We also reduced our losses (FY2022-23) to Rs 1,286 crore. Our Adjusted Gross Profit climbed by 23% to Rs 2,347 crore in FY23 from Rs 1,915 crore in FY22, reaching a margin of 43% of revenue. Our operational revenue increased from Rs 4,781 crore in FY22 to about Rs 5,463 crore in FY23, an almost 14% rise, the OYO founder and CEO stated in the email.
He claimed that the corporation reduced the number of hotels in FY23 from 18,037 in FY22 to 12,938.
“Since the process of removing the hotels that couldn’t operate within our tech-enabled, monthly revenue optimization operating model, our intention is to extend the hotel network once more. This being said, in comparison to other full-stack short-stay accommodation players, as of June 2023, we still have the greatest footprint in terms of hotels in India and SEA.
“Our entire Gross Booking Value (GBV) climbed by 25%, hitting a milestone of almost Rs 10,000 crore. GBV from the hotels business was at roughly Rs 6,172 crore, representing a y-o-y rise of 35%. GBV per storefront for hotels had a record increase of 82%, from Rs 2,19,000 to Rs 3,99,000 in FY23.
Agarwal recently addressed employees in a town hall, according to reports, and said that Oravel Stays Ltd had recorded adjusted EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) of Rs 175 crore in the first quarter of the fiscal year 2023–24 (Q1 FY24) between April and June.
