OYO Reports Rs 166 Crore Profit in Q3, Bookings Rise 33%

OYO Posts Rs 166-Crore Profit in Q3, Gross Bookings Up 33%

Travel tech company OYO has reported a profit after tax (PAT) of Rs 166 crore for the third quarter ended December, marking a significant turnaround from the Rs 25 crore profit in the same period last year. This represents a nearly six-fold increase in profitability.

Key Financial Highlights

Several factors contributed to OYO's strong financial performance in Q3:

• Revenue Growth: Revenue rose to Rs 1,695 crore, a 31% increase from Rs 1,296 crore a year earlier.
• Adjusted EBITDA: Adjusted EBITDA reached Rs 249 crore, a 22% increase from Rs 205 crore a year ago.
• Gross Booking Value (GBV): GBV reached Rs 3,341 crore, a 33% increase from Rs 2,510 crore in the same quarter of the previous fiscal year.

These figures exclude the financials of G6 Hospitality, as the acquisition was effective in the third week of December.

Nine-Month Performance

For the first nine months of the ongoing fiscal year, OYO reported a PAT of Rs 457 crore, compared to a loss of Rs 111 crore in the same period last year. This underscores the company's strong performance throughout the year.

Growth Drivers

OYO's growth was primarily driven by robust performance in its core markets of India and the US. Emerging markets in Southeast Asia and the Middle East also made significant contributions.

Strategic Initiatives

The company's recent strategic initiatives include:

• Premiumisation efforts of its India portfolio.
• Acquisition of US-based hotel major G6 Hospitality.
• Acquisition of Paris-based rental home player Checkmyguest.

Rating Upgrade

Global rating agency Moody's upgraded OYO's rating to B2 from B3, maintaining a stable outlook. Moody's estimates that OYO's EBITDA will reach $200 million in fiscal year 2025-26, which will be its first full year of earnings consolidation with its newly acquired businesses.

OYO's recent performance demonstrates its ability to run profitable operations and achieve strong revenue growth, solidifying its position in the global travel tech market.

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Categories: OYO Q3 results, profitability, travel tech