Hospitality and travel tech company OYO said that it turned cash flow positive in the fourth quarter of FY 2023, in a presentation to employees, a copy of which CNBC-TV18 has viewed.
The company is anticipated to end the quarter with nearly Rs 90 crore surplus cash flow. Founder and CEO Ritesh Agarwal revealed to employees in the internal townhall that the firm has marked the first financial year of adjusted EBITDA profitability since its inception and is expected to clock adjusted EBITDA of nearly Rs 800 crore for FY24.
The company tripled its adjusted EBITDA in H2FY23 to around Rs 185 crore, a jump from when OYO reported a negative adjusted EBITDA of Rs 190 crore in H2FY22.
Sources told CNBC-TV18, that the growth can be attributed to increase in bookings across all key geographies, but especially in the Europe homes business that is witnessing unprecedented advance bookings for both for the upcoming summer season peak and even the relatively off-season period from November to March.
Also Read:Startup Digest: OYO turns cash flow positive in Q4’23, BrightCHAMPS acquires Metamorphosis and more
The company had reported its maiden positive adjusted EBITDA of Rs 63 crore, a 24 percent year-on-year (YoY) increase in revenue and 69 percent increase in monthly booking value (GBV per month) for its hotels in H1 FY2023.
The travel tech firm is also expected to clock Rs 5,700 crores in revenue in FY23 with approx. 19 percent YoY growth. Its adjusted Gross Margin is expected to operate at a steady level of ~41 percent of revenue in FY23.
The positive cash trajectory is expected to continue into the first quarter of FY24. The company’s last reported treasury or cash corpus on the balance sheet is Rs 2,700 crore, sources added.
The company had refiled its draft red herring prospectus (DRHP) with the SEBI under the recently introduced pre-filing route, for a Rs 8,430 crore IPO, including a fresh issue of equity shares aggregating up to Rs 7,000 crore and an offer for sale of Rs 1,430 crore.
Oyo had recently announced that it plans to double the number of premium hotels such as Townhouse Oak, OYO Townhouse, Collection O and Capital O in India in 2023 by adding approximately 1,800 premium hotels.
First Published: Apr 27, 2023 6:27 PM IST
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