OYO Achieves First-Ever Net Profit, Surpassing Financial Projections

IPO-bound unicorn OYO has reported its first net profit of Rs 229 crore for FY24, surpassing founder Ritesh Agarwal's earlier estimate of Rs 100 crore. This milestone was driven by a 215% growth in Adjusted EBITDA and a leaner cost structure. OYO's revenue remained stable amid increased demand and global expansion efforts.

IPO-bound unicorn OYO has reported its first net profit of Rs 229 crore for the financial year ending March, as outlined in its recent annual report. This figure significantly surpasses founder Ritesh Agarwal's earlier projection of Rs 100 crore for the 2023-24 fiscal year.

In a statement on Wednesday, Agarwal attributed the success to the concerted efforts of 'OYOpreneurs,' noting that the company has consistently delivered positive Adjusted EBITDA over the past eight quarters. OYO's Adjusted EBITDA saw a substantial rise of 215%, reaching Rs 877 crore in FY24, compared to Rs 277 crore in FY23.

The company is strategically expanding its global footprint by acquiring K&J Consulting, the operator of the premium rental homes firm Checkmyguest Group based in Paris, France, using a share swap arrangement. With this expansion, the company has issued 7,92,84,312 Series G Fully and Compulsory Convertible Cumulative Preference Shares. OYO's Earnings Per Share (EPS) also improved significantly, moving from a loss per share of Rs 1.93 in FY23 to an EPS of Rs 0.36 in FY24. Despite stable revenue at Rs 5,388 crore, the company's leaner cost structure facilitated a reduction in total costs by 13% to Rs 4,500 crore.

(With inputs from agencies.)