OYO, the travel tech company, has achieved a significant milestone by reporting its first-ever profit after tax (PAT) of approximately Rs 229 crore for the financial year 2024. This marks a major turnaround for the company, which had previously been operating at a loss.
Strong Financial Performance
- Positive Adjusted EBITDA: OYO recorded eight consecutive quarters of positive Adjusted EBITDA, reaching approximately Rs 877 crore in FY24, a 215% increase from the previous year.
- Earnings Per Share: The company’s earnings per share (EPS) for FY24 stood at Rs 0.36, a remarkable improvement from a loss per share of Rs 1.93 in FY23.
Global Expansion and Acquisitions
OYO is focusing on global expansion, particularly in Europe, the US, Southeast Asia and the Middle East. Europe is a key market for OYO’s homes business, OVH.
- Recent Acquisition: To strengthen its presence in Europe, OYO has acquired K&J Consulting, the company that operates Checkmyguest Group in Paris, France. This acquisition includes premium rental homes in Paris, one of the world’s most visited cities.
Strategic Growth
- Hotel Inventory Growth: OYO added several new hotels to its inventory, increasing from 12,938 in FY23 to 18,103 in FY24. While these new additions are expected to take time to reach full revenue potential, they are set to contribute to future growth.
- Cost Management: OYO managed to reduce its total costs by about 13% in FY24, lowering expenses to approximately Rs 4,500 crore. This was achieved through a leaner cost structure, reduced administrative spending, and optimized marketing efforts.
Future Outlook
OYO’s focus on global expansion and cost management has set the stage for continued growth. The company’s ability to adapt and innovate in challenging markets positions it well for further success.
About OYO:
OYO is a global platform that empowers entrepreneurs and small businesses in the hospitality sector by providing technology products and services. The company operates in over 35 countries, offering affordable and trusted accommodation through more than 170,000 hotel and home storefronts worldwide
