Hospitality chain OYO is all set to become profitable for the first time ever. Oravel Stays Ltd, the company’s operating firm, is reportedly planning to reveal it’s first-ever profit after tax of more than Rs 16 crore, sources claimed based on an email shared by the company’s founder and CEO Ritesh Agarwal with the top management, reported PTI.
Agarwal in his email, sent on Tuesday, said, “This year marks the 10th year of OYO, making it momentous and special. I have news to share befitting this occasion. As per the current trajectory in this quarter, Q2 FY24 will mark our maiden profitable quarter with a projected profit after tax (PAT) of over Rs 16 crore.”
Agarwal revealed that the company’s revenue from operations stood at Rs 5,463 crore in 2022-23, up by 14 per cent from Rs 4,781 crore in 2021-22, based on the firm’s recently released annual report. Further, he noted that the firm trimmed it’s losses in FY23 to Rs 1,286 crore and reported adjusted gross profit margin increased by 43 per cent of the revenue. The adjusted gross profit of the company went up by 23 per cent to Rs 2,347 crore in FY23, against Rs 1,915 crore in FY22.
The CEO elaborated on the company’s future growth potential and noted, “We see immense potential in future growth markets like the US & UK where we are dedicated to instilling confidence in our patrons and utilizing innovative technologies, such as contactless check-in, to cater to their evolving needs of the customer.”
He added that the company reduced the number of hotels from 18,037 in FY22 to 12,938 in FY23. “Our intent is to expand the hotel network again since the process of pruning the ones which were incompatible with our tech-enabled, monthly revenue optimization operating model. This being said; as of June 2023, we still have the largest footprint in terms of hotels in India and SEA, as compared to other full-stack short-stay accommodation players,” he said.
The company saw an increase in it’s overall gross booking value (GBV) by 25 per cent and almost touched the Rs 10,000 crore milestone, Agarwal said. Out of this value, the GBV from the hotel business stood at nearly Rs 6,172 crore, marking a growth of 35 per cent on a year-on-year (YoY) basis. The GBV per storefront on hotels reported a record increase of 82 per cent to Rs 3,99,000 in FY23, up from Rs 2,19,000.