Athira Sethu
Kochi, 25 October 2024
Oyo Hotel & Homes, the Gurugram-based hospitality company, saw a turnaround in its financials over the last year. The company reported a net profit of Rs 158 crore for the quarter ending September 30. That was quite the turnaround for the same time last year when Oyo had reported a loss of Rs 50 crore.
The bottom line went up mainly for the reason that Oyo has emphasized better-quality accommodations. They introduced the company-serviced hotels through Townhouse, among other types of hotels. This is one of the reasons why it started attracting more customers as well as improving its earnings.
Oyo had reported a profit of Rs 132 crore in the first quarter of this fiscal year. It means that their total profit for the first six months of FY24 has already reached Rs 291 crore. It incurred a loss of Rs 91 crore during the same period last year.
As mentioned earlier, the numbers are yet to be audited, since the organization is yet to present its final set of accounts to the Registrar of Companies.
Oyo also announced strong booking numbers. Gross value in the September quarter stands at Rs 3,243 crore, up by 17% year over year, and revenue for three months was Rs 1,578 crore.
Moving ahead, the CEO and founder at Oyo, Ritesh Agarwal said that it expects to do more than Rs 2,000 crore in EBITDA by FY26. Earlier this year, Oyo raised Rs 1,457 crores or around $175 million from several investors, comprising family offices and leaders from the stock market. That funding has come at a valuation of around $2.5 billion. The company had then peaked at $9 billion in its valuation back in 2021.
The financing round was led by a company launched by Agarwal, which invested Rs 830 crore. Other investors included the family office of Mankind Pharma promoters and ASK Financial Holdings.
Oyo recently announced that it has acquired G6 Hospitality of the U.S. for budget lodging, the brand owners of Motel 6 and Studio 6, in a major expansion acquisition. The cash-only paid deal was pegged at $525 million.
