Oyo founder Ritesh Agarwal informed staff that the firm might report adjusted profitability of up to Rs 800 crore before tax, interest, depreciation, and amortization in the upcoming fiscal year 2024.
In an internal presentation, the company concluded the quarter with a cash flow surplus of Rs 90 crore. In March, Oyo refiled its Draught Red Herring Prospectus (DRHP) with the stock exchange regulator SEBI under the pre-filing process.
According to reliable sources, the positive cash flow trajectory is anticipated to last until the first quarter of FY24. On the balance sheet, the company has Rs 2,700 crore in cash.
Also, Oyo is attributing the changes to an uptick in bookings across all major geographies, particularly in the homes business in Europe, where reservations are already made for both the forthcoming high summer season and the relative off-season period from November to March.
In March, Oyo updated its Draught Red Herring Prospectus (DRHP) and pre-filed it with the stock market regulator SEBI. According to prior reports from corporate insiders, the issuance size has likely been lowered to $400–600 million and would only include newly issued shares.
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According to people familiar with the company, the offer size has probably been lowered to $400–600 million and will only include newly issued shares. All profits will go to the company. Oyo has stated that it intended to use the money to pay off most of its debt.
In September 2021, Oyo submitted its maiden DRHP to Sebi to raise Rs 8,430 crore, or more than $1 billion. The market regulator requested that the company update the DRHP in December of last year after Oyo submitted its updated financial results for the first half of fiscal 2022–23, which included its first-ever adjusted operating profit.
The market regulator claimed that potential investors needed to be made aware of the material improvement in the company's performance.
In a town hall meeting,
Oyo founder Ritesh Agarwal informed staff that the firm might report adjusted profitability of up to Rs 800 crore before tax, interest, depreciation, and amortization in the upcoming fiscal year 2024.
Operating profit for Oyo does not include transformation costs incurred on the assets of its hotel partners. During the town hall, Agarwal stated that the business was continuing to run in a "cost-effective" manner and was taking steps to maintain a "healthy" cash runaway.
He added that they had a present cash position of Rs. 2,700 crores and hoped they would use very little of it for existing operations. As a result, the need for external funding had decreased.
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According to the information given at the town hall meeting last month, Oyo expects its income for the fiscal year 2023 to exceed Rs 5,700 crore, an increase of 19% from the Rs 4,780 crore reported for the fiscal year 2022.