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Oyo’s revenue rises 18% to Rs 4,905 crore in FY22, net loss narrows to Rs 1,851 crore

Oyo

Oyo, an online hotel aggregator, said in an updated IPO filing to the market regulator that its operating income increased 18 percent year on year to Rs 4,905 crore in FY22, while its net loss decreased 45 percent to Rs 1,851 crore.

In FY20, the Softbank-backed company was still a long way below its pre-Covid annual operating revenue of Rs 13,413 crore. Prior to the coronavirus epidemic, it had a net loss of Rs 10,419 crore.

The hospitality firm reported operating revenue of Rs 1,505 crore in the June quarter of FY23 in an update to its draft red herring prospectus filed with SEBI. During that time, it suffered a net loss of Rs 548 crore.

For the June quarter, Oyo reported EBITDA (earnings before interest, taxes, depreciation, and amortisation) of Rs 10.6 crore.

While finance costs (such as interest payments) and share-based payment costs were excluded from the company’s EBITDA calculation, other income was included (which generally means returns from financial investments like bank deposits and mutual funds).

In its hotels division, the company claimed its gross booking value (GBV) per shop per month increased from Rs 2 lakh in FY21 to Rs 2.2 lakh in FY22. The resurgence of the travel sector resulted in GBV per storefront per month rising to Rs 3.25 lakh in the June quarter.

When compared to the previous fiscal year, the hotel aggregator’s staff costs increased by 7% to Rs 1,862 crore in FY22. However, marketing and promotional expenses increased by 27% from Rs 543 crore in FY21 to Rs 690 crore in FY22.

According to the company’s most recent SEBI filing, Oyo founder and CEO Ritesh Agarwal was paid Rs 5.6 crore in FY22, up 250 percent from Rs 1.6 crore in FY21. His salary during FY20 was Rs 21.5 lakh.

According to an earlier source, the company, which had filed preliminary paperwork with Sebi to raise Rs 8,430 crore through an initial share offering in October 2021, is willing to settle for a lesser valuation of approximately $7-8 billion rather than the $11 billion it had initially targeted.

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