Hospitality major Oyo is targeting over Rs 700 crore in net profit for FY25 after posting a Rs 130 crore net profit in the first quarter of the current financial year.
Founder and Chief Executive Officer Ritesh Agarwal, in a town hall presentation to employees, shared the company's provisional net profit number. The profit figure for Q1 is a turnaround from the Rs 108 crore loss that it had reported in the same period last year.
Agarwal added that Oyo's profit after tax is projected to surge three times to over Rs 700 crore in FY25.
He attributed the improved financials to demand for higher revpar (revenue per available room) company-serviced hotels in India, alongside growing demand for premium properties across Europe.
Apart from the acquisition of Checkmyguest in France in FY24, the company has also invested about Rs 450 crore in Denmark.
Agarwal, in the presentation, shared that Oyo is opening a new property every three days in the US and is now the largest value hotel platform in Indonesia.
Oyo reported its first-ever profit after tax, coming in at Rs 229 crore for fiscal 2024. It made the profit due to a reduction in general and administrative spend and optimising marketing spends, as costs decreased by 13% to Rs 4,500 crore from Rs 5,207 crore, despite revenue remaining flat over the previous year.
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