 "OYO's adjusted Ebitda grew 25x to Rs 175 cr in Q1 FY24, says CEO")
Oravel Stays Ltd., which operates hospitality brand OYO, clocked an Ebitda of Rs 175 crore in the first quarter of financial year 2023-24 (Q1 FY24), said Ritesh Agarwal, the company’s chief executive officer, on Monday.
The number is an almost 25-fold increase in Q1 Ebitda, or earnings before interest, taxes, depreciation and amortization, compared to the same period last year, 'Business Standard' has learnt. The company reported its maiden Ebitda-positive quarter at Rs 7 crore in Q1 FY23 and marked its first full year of Ebitda profitability in the same financial year.
“Our Q1 adjusted EBIDTA of Rs 175 crore makes it an exciting start to the year. If you annualize this outcome, it sets us up for Rs 700 crore adjusted EBIDTA this financial year, though, in all likelihood, and we will achieve or probably surpass our previously stated target of Rs 800 crore. The Q1 adjusted EBIDTA of Rs 175 crore is nearly same as what we achieved in Q4 last year, which is seasonally the strongest quarter,” Agarwal said during a town hall with his employees.
OYO added more than 1,000 hotels and 3,500 homes to its platform in Q1 FY24.
“Our cost rationalisation measures in Europe and busy summer months have positively impacted our EBITDA in the first quarter. This, coupled with our increased focus on customer experience and quality improvement measures, will drive our growth this year,” said Agarwal.
OYO turned cash flow positive in the fourth quarter of FY 2023. In a town hall in March this year, Agarwal said that the company ended the fourth quarter with surplus cash flow of nearly Rs 90 crore. Agarwal did not speak about cash flows in Monday’s town hall.
OYO in March refiled its Draft Red Herring Prospectus (DRHP) with the stock market regulator, using the new pre-filing route. The issue size for the company’s public listing was reduced by almost half to between $400-600 billion, all of which will be raised through a primary issuance, in a bid to repay most of the firm’s debt, 'Business Standard' reported earlier.
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Recently, global ratings agency Moody’s Investors Service said that it expects OYO to remain Ebitda positive in FY24. In its report, Moody’s said that OYO will generate around $50 -$55 million Ebitda, after shared based payment expenses in fiscal 2024.
Ratings agency Fitch also recently upgraded its rating on OYO (Oravel Stays Ltd) and said that they expect OYO to deliver positive Ebitda and CFO (Cash Flow from Operating Activities) in FY24.