Mumbai, Aug 29: IPO-bound travel tech platform Oyo has projected a three-fold rise in its profit after tax for the current financial year at over Rs 700 crore, Founder and CEO Ritesh Agarwal told employees in a town hall on Wednesday, sources said.Earlier this year, Oyo reported its first-ever profit after tax of nearly Rs 229 crore for FY24.
Agarwal shared the company’s provisional net profit numbers for Q1 and FY25 at the employee town hall, sources said.
As per Agarwal, Oyo achieved a net profit (PAT) of about Rs 132 crore in Q1 FY 2025, a turnaround from the Rs 108 crore loss reported for the same quarter of the previous fiscal year.
He also shared that the company projects its PAT to surge three-fold to over Rs 700 crore in the current fiscal year.
The company’s FY24 profitability, growth in key markets, and expected reduction in interest outgo have bolstered confidence in achieving a projected net profit of over Rs 700 crore, potentially tripling the Earnings Per Share (EPS) from 36 paise to nearly Rs 1, according to a presentation shared in the town hall.
“This quarter (Q1 FY 2025) we achieved a net profit (PAT) of nearly Rs 132 crore. We saw in this quarter that our hotel business is thriving across key markets India and South East Asia, and we are seeing consistent growth in the US. The future looks bright, and we’re excited to be at the forefront of this travel renaissance. All this is painting a promising picture for the quarters ahead,” Agarwal was quoted as saying.
The Oyo founder further shared the company’s recent strategic partnership with Checkmyguest in France and the investments made in Denmark are expected to accelerate its growth in Europe.
“In the US, we’re opening a new property every three days, reflecting a very strong momentum in the world’s largest economy. Additionally, we are now the largest value hotel platform in Indonesia,” Agarwal said.