OYO's Milestone: First Profitable Year with Rs 100 Crore Net Income

OYO Reports First Profitable Year with Nearly Rs 100 Crore Earnings, Fitch Upgrades Credit Rating.

Expert Analysis:

• Profitability: OYO reported its maiden profitable fiscal year (2023-24) with net earnings of nearly Rs 100 crore.

• Growth Prospects: Founder Ritesh Agarwal emphasized growth in India and key international markets, including the Nordics, South East Asia, the US, and UK.

• Credit Rating Upgrade:

  • Fitch Ratings upgraded OYO's credit rating due to improved financial performance and strong cash flows.

  • Fitch upgraded the rating of OYO's USD 660-million senior secured term loan facility due 2026 to 'B' from 'B-'.Fitch upgraded Oravel Stay's long-term foreign and local currency issuer default ratings to 'B' from 'B-' with a 'Stable' outlook, according to a statement.

• Global Expansion: OYO added about 5,000 hotels and 6,000 homes globally in FY24.

• Financial Performance: The company reported a PAT of Rs 99.6 crore (USD 12 million) and an adjusted EBITDA of Rs 888 crore (USD 107 million), up from Rs 274 crore (USD 33 million) in FY23.