IPO-bound unicorn OYO reported its first-ever net profit of Rs 229 crore during the financial year that ended in March, as per its latest annual report.
Ritesh Agarwal, OYO founder, acknowledged on X (formerly Twitter) on Wednesday that the numbers have exceeded his earlier estimate of Rs 100 crore for the 2023-24 fiscal year.
"One big learning for me over the years is under-promise and over-deliver. Our audited results are published post-adoption by the board. The effort of OYOpreneurs has delivered Rs 229 crore net profit, exceeding my earlier estimate of Rs 100 crore," Agarwal tweeted.
In a statement, OYO informed that the first-ever net profit comes on the back of eight consecutive quarters of positive Adjusted EBITDA.
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"OYO's Adjusted EBITDA grew by 215 per cent to reach nearly Rs 877 crore in FY24, up from about Rs 277 crore in FY23," the travel tech platform reported in its annual report.
Aiming for global expansion, the company said it has acquired K&J Consulting, which operates the premium rental homes company Checkmyguest Group, based in Paris, France, through a share swap arrangement.
To capitalize on this global growth, the company is issuing 7,92,84,312 "Series G Fully and Compulsory Convertible Cumulative Preference Shares" for the acquisition.
OYO's Earnings Per Share (EPS) stood at nearly Rs 0.36 in FY24, a significant turnaround from the loss per share of about Rs 1.93 reported in FY23, the company said.
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In FY24, OYO added several new hotels, driven by strong business performance, increased demand, and improved market sentiment, according to its annual report.
"As a result, its inventory grew from 12,938 at the end of FY23 to 18,103 by the end of FY24...Hence, the company's consolidated revenue from operations remained stable at nearly Rs 5,388 crore against around Rs 5,463 crore in FY23," the report stated.
The company's total costs decreased by about 13 per cent to nearly Rs 4,500 crore in FY24 from around Rs 5,207 crore in the previous year.
The annual report attributed this reduction to a leaner cost structure, "by reduction in general & administrative spend and optimising marketing spends while maintaining topline growth".
A company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is a measure of its profitability of the operating business only, thus before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset base.
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