OYO's Ritesh Agarwal anticipates continued profit growth after Q3FY24 success

OYO is optimistic about a sustained increase in Profit After Tax (PAT) after achieving a twofold sequential growth to ₹30 crore in Q3 FY24, PTI reported, citing founder and CEO Ritesh Agarwal's words to employees at the company townhall on February 9.

Speaking to employees, Agarwal said the hospitality and travel-tech firm has doubled its profits. In Q2 FY24, OYO's operator Oravel Stays saw experienced its first profitable quarter with a PAT of ₹16 crore, he said.

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Positive Outlook for Future Quarters

Agarwal in his speech expressed confidence in the forthcoming quarters. He said the anticipated PAT growth would be achieved through increased patron confidence, enhanced customer experience, and favourable market conditions conducive to sustained expansion.

He further shared that the company achieved an adjusted EBITDA of ₹750 crore in FY23 and aims to reach ₹1,000 crore in FY24, surpassing the earlier projection of ₹800 crore for the fiscal year.

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When approached for comments, an OYO spokesperson declined, the report added.

Debt Repayment and IPO Plans

In the previous year, OYO successfully prepaid ₹1,620 crore in debt through a buyback process, involving the repurchase of 30 percent of the company's outstanding Term Loan B (TLB). The IPO-bound firm, in its last public filing, disclosed operational profitability in FY23, registering an adjusted EBITDA of ₹277 crore.

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Agarwal had previously informed employees that the company achieved positive cash flow in the fourth quarter of FY23.