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Oyo reports its first EBITDA positive quarter, reduces FY22 losses

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SoftBank-backed hospitality technology platform has filed the addendum to the draft red herring prospectus (DRHP) submitted in October last year for its initial public offering (IPO).


Meanwhile, CEO Ritesh Agarwal’s salary has surged 250 per cent YoY, from Rs 1.62 crore in FY21 to Rs 5.6 crore in FY22.


While the company did not comment on the timeline of the IPO, sources said it was eyeing early CY23 for this, but a lot will depend on market conditions.


The company disclosed its latest financial numbers, which include those for 2021-22 and the April-June quarter of FY23. They showed improvement in the company’s revenues, which is due to recovery in travel, and the company reduced its losses.


In FY22 revenues were Rs 4,905 crore, up 18 per cent against Rs 4,157.3 crore reported in FY21.


For the first quarter of FY23 (April-June) revenues were Rs 1,504.5 crore.


almost halved its losses for FY22 at Rs 1,892.2 crore from Rs 3,382.5 crore in FY21. Losses for Q1 FY23 came in at Rs 353.4 crore.


The company narrowed its (earnings before interest, tax, depreciation, and amortisation) losses for 2020-21 by 49 per cent over those of FY20.


It also reported its first quarter (Q1 FY23) of positive at Rs 10.57 crore.


While the company received flak on the micro-blogging website over its adjusted numbers, Abhishek Gupta, chief financial officer, OYO, in a tweet, said: “EBITDA is clearly reported and is higher at Rs 10.57 crore for Q1FY23 than Adj EBITDA of Rs 7.26 crore…”


The performance of Q1 FY23 was driven by improvement in gross booking value (GBV).


Monthly gross booking value per hotel saw 47 per cent growth in Q1 FY23 to Rs 3.25 lakh against Rs 2.21 lakh for 2021-22.


The filing attributes this to the recovery in travel demand.


Monthly gross bookings per home in the vacation homes business have also improved marginally to Rs 39,000 in the first quarter of 2022-23.


On operational costs, despite the increase in marketing expenses, the total cost was marginally up by 0.6 per cent at Rs 6,984 crore in FY22 as against Rs 6,937 crore in FY21.


The company has optimised its expenses on salaries and general administration.


General and administration expenses reduced by 44.4 per cent from Rs 926.8 crore in FY21 to Rs 515.4 crore in FY22.


Employee expenses, net of employee stock options, went down 26.5 per cent to Rs 1,117.26 crore in FY22 from Rs 1,520.4 crore in FY21.


The company’s proposed IPO comprises a fresh issue of equity shares aggregating up to Rs 7,000 crore and an offer for sale Rs 1,430 crore, according to its DRHP.


Positive Outlook


  1. Main market focus: India, Indonesia, Malaysia, and Northern Europe

  2. Rs 647 cr ESoP compensations for FY22, up from Rs 153.6cr in FY21

  3. 47% growth in monthly gross hotel bookings per hotel in Q1 FY23 to Rs 3.25 lakh versus Rs 2.21 lakh for FY22

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