Initial public offering (IPO)-bound hospitality major Oyo has reported a profit after tax (PAT) of Rs 132 crore for the first quarter (Q1) of the financial year 2024-25 (FY25), up from a loss of Rs 108 crore in the year-ago period, CEO and founder Ritesh Agarwal said at an employee town hall on Wednesday.
The company expects its PAT to increase three-fold to Rs 700 crore for the full year FY25, Agarwal said.
Agarwal attributed Oyo’s strong Q1 performance to its successful expansion across key markets – namely India, Southeast Asia, and the United States – the growth of company-serviced properties globally, and strategic partnerships and investment in Europe.
Oyo recently reported its first-ever full-year profit of Rs 229 crore, as per the company’s annual report.
“We saw in this quarter that our hotel business is thriving across key markets India and Southeast Asia, and we are seeing consistent growth in the United States… All this is painting a promising picture for the quarters ahead,” Agarwal said.
Agarwal added that Oyo is witnessing “significant demand” for its company-serviced hotels in India, which is driving rapid growth.
“Our premium properties are seeing strong preference not only in India but also across various global markets. Our recent strategic partnership with Checkmyguest in France and the investments we have made in Denmark are expected to accelerate our growth in Europe,” he said.
The company recently acquired property management firm Checkmyguest in Paris, France, to expand its presence in Europe. As part of the deal, Oyo also acquired its two affiliated companies, Studio Prestige, a Paris-based luxury apartments rental service, and Helpmyguest, a property design and renovation company.
In the US, Agarwal said that Oyo is opening a new property every three days, reflecting very strong momentum in the world’s largest economy. Additionally, the firm is now the largest value hotel platform in Indonesia.
According to Agarwal, the company’s FY24 profitability, growth in key markets, and expected reduction in interest outgo have bolstered confidence in achieving a projected net profit of Rs 700 crore for FY25, potentially tripling earnings per share (EPS) from 36 paise to nearly Rs 1.
Agarwal recently invested Rs 830 crore in the company through his wholly owned entity, Patient Capital, bringing Oyo’s total funding for the latest round to Rs 1,457 crore at a $2.4 billion valuation. As a result, the CEO’s stake in the company rose from 29.97 per cent to 32.57 per cent.
First Published: Aug 28 2024 | 6:46 PM IST