Oyo made profit for the first time
Oyo has now become the world’s largest hotel chain by connecting small budget hotels built at famous tourist spots to the streets of pilgrimage sites. This new venture of Ritesh Aggarwal has announced its results and for the first time it has turned a profit. The company’s profit for 2023-24 was Rs 229 crore. The company has announced its profit at a time when it is going to enter the stock market by launching an IPO very soon.
The company’s results have been better than its expectations. It had expected a profit of Rs 100 crore in 2023-24. The company’s founder Ritesh Aggarwal also expressed his happiness over the company’s results on this occasion. He said in a statement, “The most important lesson I have learnt over the last few years is to talk less and do more. Our audited results have been made public after the Board’s approval. The company’s net profit has been Rs 229 crore, which is more than my earlier estimate of Rs 100 crore.
Revenue also increased by 215 percent
According to Oyo’s annual report, its total pre-tax income increased by 215 percent to about Rs 877 crore in 2023-24. This was around Rs 277 crore in the financial year 2022-23. During this period, the company’s cost also decreased by about 13 percent and was just Rs 4,500 crore. This cost was around Rs 5,207 crore in the financial year 2022-23.
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In the financial year 2023-24, Oyo has added many new hotels to its network. Not only this, its business performance has also improved. Its demand has increased due to the increase in travel. Due to all these factors, Oyo has made huge profits.
Expand business abroad
Oyo’s network is already the largest budget hotel network in the world. The company recently acquired French company K&J Consulting, which operates the premium home rental company ‘Checkmyguest Group’ in Europe and has completed this deal via a share exchange.
Oyo’s IPO is coming soon
Oyo had announced its IPO about 2 years ago. But considering the market conditions, the company has not launched it yet. Oyo’s IPO is expected to happen this year and its size may be Rs 8,430 crore. There will be a fresh issue of Rs 7,000 crore and an offer for sale worth Rs 1,430 crore is expected.
