Oyo Posts First-Ever Profit At Rs 229 Crore For FY24
The profit was managed due to 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.
Hospitality major Oyo has reported its first-ever profit after tax, coming in at Rs 229 crore for fiscal 2024, according to the company's annual report.
The company's maiden profit came after reporting a loss of roughly Rs 1,290 crore in fiscal 2023. The profit was also on the back of flat revenues for the year, with consolidated revenue from operations dipping slightly to Rs 5,388 crore against Rs 5,463 crore in FY23.
The profit was managed due to 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.
"In FY24, Oyo, on the back of sound business performance, an increase in demand and improved market sentiment, added several new hotels. As a result, its inventory grew from 12,938 as on FY23 to 18,103 as on FY24 . The new additions will require time to achieve full revenue potential, with financial returns expected to become evident going forward," the annual report said.
The company has also now reported an earnings per share of about Rs 0.36 in FY24, an improvement from the loss per share of Rs 1.93 reported in FY23.
Among other geographies, the company has seen growth across Europe, the US, Southeast Asia and the Middle East, it said. "Europe, being the largest market for vacation rentals, presents a significant opportunity for Oyo's homes business, Oyo Vacation Homes."
It also acquired K&J Consulting during FY24, which operates French premium rental homes company Checkmyguest. "Checkmyguest has a dense presence in Paris for instance, which is one of the most visited cities in the world. Oyo gets to acquire premium homes inventory primarily through a share swap over a period of time, in addition to some cash outgo for the acquisition, which gets quickly offset since it's a cash generating business," the company said.
It will also get shares in Checkmyguest's two affiliated companies Studio Prestige, a Paris-based luxury apartments rental service, and Helpmyguest, a property design and renovation company.
