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 comes on the back of eight consecutive quarters of positive Adjusted 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.
The annual report highlights OYO's global expansion efforts, noting that "Among other geographies, the company has seen 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. Capitalising on this, 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 premium rental homes company Checkmyguest group from Paris, France.
OYO spokesperson said “Checkmyguest has a dense presence in Paris for instance, 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 a part of the deal, provide them with the ability of upgrading or transforming the home interiors for a more premium appeal.”
As per the Annual Report, in FY24, OYO, on the back of sound business performance, an increase in demand and improved market sentiment, added several new hotels. As a result, its inventory grew from 12,938 as on FY23 (EoY) to 18,103 as on FY24 (EoY). The new additions will require time to achieve full revenue potential, with financial returns expected to become evident going forward. Hence, the company’s consolidated revenue from operations remained stable at ~Rs 5,388 crores against ~Rs 5,463 crores during the financial year 2022-23.
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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. The annual report attributes this reduction to a leaner cost structure, “by reduction in general & administrative spend and optimising marketing spends while maintaining topline growth”.
