New Delhi, Sep 26 (IANS): Global travel tech brand OYO is set to report its first-ever profit after tax at Rs 16 crore in the second quarter of the FY24.

In a letter to the company’s top management, seen by IANS, OYO founder Ritesh Agarwal shared that Q2 FY2024 will mark the company’s maiden profitable quarter with a projected profit after tax (PAT) of over Rs 16 crore.

Congratulating his team on OYO completing 10 years, Agarwal wrote, “As per the current trajectory in this quarter, Q2 FY24 will mark our maiden profitable quarter with a projected profit after tax of over Rs 16 crore.”

He said that the revenue from operations stood at Rs 5,463 crore in FY23, up from Rs 4,781 crore in FY22, marking a 14 per cent increase.

“We also narrowed our losses to Rs 1,286 crore. Our Adjusted Gross Profit Margin rose to 43 per cent of revenue and Adjusted Gross Profit increased by 23 per cent to Rs 2,347 crore in FY23 from Rs 1,915 crore in FY22,” Agarwal wrote.

The overall Gross Booking Value (GBV) increased by 25 per cent reaching the Rs 10,000 crore milestone in FY23.

Agarwal, during an employee town-hall earlier this year, had shared that OYO expects to clock adjusted EBITDA of nearly Rs 800 crore in FY2024.

OYO has also published its Annual Accounts for FY2023. It has achieved operational profitability in FY2023, clocking an Adjusted EBITDA of Rs 277 crore.

In the annual report, OYO attributed this achievement to its focus on core markets, centralisation of key functions, cost optimisation initiatives, divestment, and rationalisation of non-core businesses.

The company reduced the number of hotels in FY23 to 12,938 from 18,037 in FY22, citing an increased focus on quality customer service across OYO hotels, globally.

It still maintains the largest footprint in terms of hotels in India and SEA, as compared to other full stack short-stay accommodation players (as of June 2023).

The company in its filing said that the OYO app is the fourth most downloaded travel app globally (as of July 2023) and the most downloaded travel app in key Asian markets.

“Today, there are over 1,000 hotels tagged as Super OYO’s spread across 140 cities in India. Average customer service ratings of OYO hotels in India have gone up to four out of five in 2023 from 3.5 in 2022”, Agarwal wrote in the letter.

Recently, global ratings agency Moody’s shared that it expects OYO to remain EBITDA positive for FY24.