As travel rebounds, Oyo checks in its first full-year net profit

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BENGALURU:Oyo has reported its first full-year net profit in its 12 years of existence, scoring its second victory this week following a vote of confidence from Fitch as the hospitality chain rides a resurgence in travel.Weeks after withdrawing its draft initial public offering papers, Oyo's founder Ritesh Agarwal said on social media platform X that the company had made a profit after tax of nearly ₹100 crore in 2023-24. Oyo had reported a loss of ₹1,286.5 crore for FY23.Oyo, owned by Oravel Stays Pvt.

Ltd, is yet to officially file its financials for FY24 and the March quarter.Earlier this week, ratings firm Fitch upgraded its long-term foreign and local currency issuer default ratings for the SoftBank-backed Oyo to ‘B’ from ‘B-’, with a ‘stable’ outlook.Also read | General Atlantic, Norwest eye stake in Oyo“I see growth ahead not just in India with emerging travel trends such as premiumization, spiritual travel, business travel and conferences, destination weddings but also in our other key markets of Nordics, South East Asia, US and UK," Agarwal, who's the group chief executive, said in a post on X on Thursday, signalling optimism for continuing growth in the ongoing financial year as well.Oyo recorded its eighth consecutive quarter of positive EBITDA in the three months ended March period, Agarwal said on X, without disclosing the numbers. Oyo currently has cash balances amounting to ₹1,000 crore, Agarwal added.EBITDA, or earnings before interest, tax, depreciation, and amortisation, is a key measure of operational efficiency.Fitch, in its latest update, also upgraded its rating on Oyo’s $660 million senior secured term loan facility, with an outstanding $448 million due in 2026, to ‘B’ from ‘B-’, citing the