Oyo EBITDA sees 8-fold jump in Q2, loss narrows to Rs 333 cr sequentially

Sebi had given Oyo permissionto submit updated financials before it examined and finally processed the company’s initial public offer (IPO) application.

As per the addendum, first-half revenue rose 24% to Rs 2,905 crore from the year ago. It swung to a profit of Rs 63 crore in the first half from a loss of Rs 280 crore in the year earlier, as per adjusted ebitda. Ebitda grew eightfold to Rs 56 crore in the second quarter, driven by a 23% sequential rise inmonthly revenue per property or gross booking value (GBV) per hotel to Rs 4 lakh. It reported revenue of 1,446 crore in the second quarter. The GBV per hotel increased by 69% year on year to Rs 3.48 lakh in H1. The total GBV of Oyo’s hotels as well as homes business grew 33% to Rs 5,028 crore in first half as per the addendum.

Gross rentals for Oyo’s European homes business were almost stagnant at a 4% increase in the second quarter from the year before. As of September 30, it had close to 80,000 vacation homes versus 74,000 on the same day last year.

Agencies

Hotel Storefronts Down

Hotel storefronts were at 12,546 at the end of H1, down from 17,994 as of March 31. “The decrease in the number of storefronts for our hotels business from 17,994 storefronts as on March 31, 2022, to 12,546 storefronts as on September 30, 2022, was largely due to measures that we took to improve our GBV per storefront per month, including temporarily pausing operations for storefronts that were operating at subpar GBV per storefront per month levels and delivering an unsatisfactory customer experience,” Oyo stated in its addendum.
Employee expenses constituted the largest component on the cost side in the first half, at 18% of revenue, followed by marketing expenses at 14% and general and administrative expenses at 7%. Oyo will need to show another quarter of rising ebitda for the market to judge whether the performance trajectory is sustainable. “This will be the most important parameter if the company does decide to launch its IPO in the first quarter of 2023. The overall market will also need to be conducive towards startup stocks which seem to be out of favour currently,” said a person with knowledge of the matter.

In September, Oyo had reported losses of Rs 2,140 crore from continuing operations in FY22, down from Rs 4,103 crore in the previous year, as per a previous addendum filed with Sebi. The company said the first quarter of FY23 was its first ebitda-positive quarter, even as it posted a loss of Rs 414 crore. Revenue from operations was Rs 1,459.3 crore for the first quarter.