At a town hall meeting on Monday, Agarwal informed employees that OYO aims to achieve adjusted EBITDA of nearly Rs 800 crore in the coming fiscal year.
Hospitality and travel-tech company OYO expects its revenue in FY23 to be more than Rs 5,700 crore, up 19 per cent from Rs 4,780 crore in FY22, according to its Founder & Group CEO Ritesh Agarwal.
At a town hall meeting on Monday, Agarwal informed employees that OYO aims to achieve an adjusted EBITDA of nearly Rs 800 crore in the coming fiscal year.
Sustained growth in India, Indonesia, the United States and the United Kingdom, as well as pertinent optimisation and synergies in the company’s European vacation homes business, have resulted in improved financials, he said in a presentation to employees.
Agarwal stated in the presentation that OYO’s revenue for FY2023 is anticipated to be over Rs 5,700 crore, a 19 per cent increase from the Rs 4,780 crore achieved in FY2022.
According to Agarwal, OYO’s main focus areas in the calendar year 2023 will be Profit After Tax (PAT) along with consistent momentum in EBITDA; achieving cash flow positive in FY24; cost efficiency and increasing contribution margins; and making storefront additions, among other things.
Earnings Before Interest, Taxes, Depreciation and Amortisation is abbreviated as EBITDA.
He stated that the business expects to end FY23 with more than 1.72 lakh storefronts, up from 1.69 lakh in FY22, representing a nearly 2 per cent increase.
An OYO spokesperson declined to respond when contacted.
OYO has a current cash balance of Rs 2,700 crore, according to Agarwal and the firm hopes to use very little of it for current operations.
OYO’s reliance on external funds has steadily decreased as cash flow has improved, he said.
In an update to its Draft Red Herring Prospectus (DRHP), the business reported an adjusted EBITDA of Rs 63 crore in the first half of FY2023 in its filing with the Securities and Exchange Board of India (SEBI).
Sebi requested that OYO refile the draught IPO (Initial Public Offering) documents with certain updates in January. OYO submitted preliminary documents with Sebi for a Rs 8,430 crore IPO in September 2021.
The IPO was delayed due to the then-volatile market circumstances, which forced the business to settle for a lower valuation of around USD 7-8 billion rather than the USD 11 billion it had originally planned.
