OYO Rooms Founder and CEO Ritesh Agarwal on Thursday announced that the global hospitality chain achieved its first profitable financial year in 2023-24, with a net profit of Rs 100 crore. Agarwal, however, added that these figures are provisional, and the final audited financials are expected to be similar.
Ritesh Agarwal emphasized that this milestone marks the company's first net profitable year, with nearly Rs 100 crore in net profit. He also pointed out that the company has maintained a positive EBITDA for eight consecutive quarters and has a cash reserve of around Rs 1,000 crore.
In his X post, Agarwal mentioned that the global credit rating agency Fitch has recognized OYO's improved performance and robust cash flows by upgrading the company's credit rating.
Looking ahead, the OYO CEO sounded optimistic about growth, not only in India with emerging travel trends such as premiumisation, spiritual travel, business travel, conferences, and destination weddings but also in key international markets such as the Nordics, Southeast Asia, the US, and the UK.
Moreover, the hospitality giant plans to refile its IPO documents with the Securities and Exchange Board of India (SEBI) following the refinancing of its $450 million Term Loan B (TLB) at a lower interest rate. This strategic move is expected to save the company $8-10 million annually in the first year and $15-17 million in subsequent years.
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