At Rs 100 crore, OYO posts FY24 as maiden profitable fiscal: Ritesh Agarwal

Travel tech platform OYO reported financial year 2023-24 as the maiden profitable fiscal with a net earning of nearly Rs 100 crore, founder Ritesh Agarwal said on Thursday.

In a post on social media platform X, Agarwal said he sees growth ahead "not just in India" but also in OYO's other key markets of Nordics, South East Asia, the US and UK.

"While a delighted customer or a hotel partner brings the biggest smile on my face, our first cut financials of FY24 have me humbled as well," Agarwal shared.

"We had our maiden net profitable financial year at nearly Rs 100 crore. This was our eighth consecutive quarter of a positive EBITDA and we also have a cash balance of around Rs 1,000 crore," he added.

He further highlighted that global credit rating firm Fitch has also taken note of OYO's improved performance and strong cash flows, upgrading its credit rating.

"I see growth ahead not just in India with emerging travel trends such as premiumization, spiritual travel, business travel and conferences, destination weddings but also in our other key markets of Nordics, South East Asia, US and UK. FY25 will clearly be even more exciting," the OYO founder stated.

He added that these are provisional numbers, but the audited financials will likely be close to these.

Earlier this week, Fitch Ratings announced it has upgraded the rating of OYO parent firm Oravel Stays, citing the hospitality company's improved financial profile.

Fitch upgraded Oravel Stay's long-term foreign and local currency issuer default ratings to 'B' from 'B-' with a 'Stable' outlook, according to a statement.

It also upgraded the rating on the company's $660-million senior secured term loan facility due 2026 to 'B' from 'B-'.

In FY24, OYO added about 5,000 hotels and 6,000 homes globally.

It also reported a PAT (Profit after Tax) of Rs 99.6 crore ($12 million) and an adjusted EBITDA of Rs 888 crore ($107 million) for the whole fiscal year, up from Rs 274 crore ($33 million) in FY23.

EBITDA -- Earnings Before Interest, Taxes, Depreciation, and Amortization -- is an alternate way of calculating profitability to net income.