OYO CEO Ritesh Agarwal told employees that PAT is expected to continue to grow in the coming quarters

Ritesh Agarwal, founder and CEO of hotel and travel technology company OYO, said it expects its profit after tax (PAT) to double sequentially to Rs 30 crore in the third quarter of fiscal 2024 and continue to grow thereafter. Agarwal shared the latest news about the company’s tripling of profits at a staff meeting on Friday.

Oravel Stays Ltd, which operates travel technology brand OYO, turned profitable for the first time in the second quarter of fiscal 2024, with a profit after tax of Rs 16 crore. “In the coming quarters, we expect continued growth in profit after tax, driven by increasing customer confidence, improved customer experience and favorable market conditions that support continued growth,” Agarwal told employees.

He also told employees that the company’s adjusted EBITDA in fiscal 2023 was Rs 750 crore and it expected adjusted EBITDA in fiscal 2024 to be Rs 1,000 crore, exceeding the previous forecast of Rs 8 billion in fiscal 2024. An OYO spokesperson declined to comment when contacted.

Last year, OYO advanced debt of Rs 1,620 crore through a buyback process, which involved buying back 30% of the company’s outstanding term loan B (TLB). The IPO-bound company disclosed in its last public filing that it achieved operating profit in fiscal 2023 with adjusted EBITDA of Rs 277 crore.

Earlier, Agarwal had shared with employees that the company achieved positive cash flow in the fourth quarter of fiscal 2023.

(This story has not been edited by News18 staff and is published from associated news agency – PTI)