At a recent internal town hall meeting, OYO founder Ritesh Agarwal announced that the company achieved positive cash flow for the fourth quarter of FY23. The Decacorn is expected to end the quarter with excess cash flow of Rs 90 crore.
A source told Business Today that OYO has seen an increase in bookings across all major geographies, particularly Europe, where the home business has seen an “unprecedented increase in bookings” for both the upcoming peak summer season and the relatively low season Period from November to March. All of these factors have resulted in the company becoming profitable, OYO’s top boss said, according to the source at City Hall.
“The positive cash development is expected to continue in the first quarter of FY24. The company’s latest reported cash or cash on balance sheet is Rs 2,700 crore,” Agarwal is said to have announced at City Hall. Additionally, the company plans to add 1,800 hotels in its premium category this year, the source told BT.
In December last year, Business Today reported that the company will delay its IPO by a quarter because market watchdogs wrote back to the company asking it to update additional sections in its draft Red Herring prospectus (DRHP), such as: B. updated risk factors, Key Performance Indicators (KPIs), pending litigation, baseline assessments, etc. The hospitality company completed its DRHP and submitted it to Sebi in February.
BT also reported that the company expects to close its Adjusted EBITDA (for H2 FY23) at Rs 185 crore, a 3x increase over H1 (Rs 63 crore). In FY22, OYO reported a net loss of Rs.1,851 crore against Rs.4,905 crore of revenue. Additionally, the company, which has been planning an IPO since 2021, is aiming to be listed during the Diwali season this year, sources told BT.
BT reached out to the company for official comment but received no response.
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